Vietnam cement opportunities

Vietnam cement opportunities
Published: 27 February 2004

Foreign investors will find Vietnam’s two important industries, cement and electricity, more attractive since the country’s ministries will, this year, propose the government loose requirements on investment in the industries. Besides, domestic demand for cement and electricity is expected to sharply increase in the next few years. The Ministry of Planning and Investment (MPI), in coordination with the Ministry of Construction, will propose that the government should allow partners in cement joint ventures to decide their proportions of investment capital contribution, according to an authorised source from MPI. Under the prevailing regulation, the foreign side can hold a maximum of less than 60 per cent of the stake. With the country’s rapid urbanisation and great construction, domestic demand for cement is predicted to increase to 25.7Mt in 2004, 29.1Mt in 2005, 32.6Mt in 2006, 40.1Mt in 2008 and 48.6Mt in 2010.