The Vietnamese cement sector has 20Mta overcapacity and must now slow down the pace of investment into new cement production, the government has decided.
Vietnam’s cement industry development plan 2011-20, which was approved by the Decision 1488/QD-TTg in 2011 and which has until now supported the development of the industry, will be replaced by a new plan in response to current market conditions.
After five years of implementation since 2011, the Prime Minister has agreed to take 14 cement projects with small capacities of around 910,000tpa of cement out of the plan, delay development of nine other projects and slowdown investment for seven other projects.
Accordingly, the Ministry of Construction has presented a revised development plan for the industry spanning 2017-25 with long-term targest for 2035, which will replace the plan under Decision 1488.
Going forward, the ministry will adjust and supplement lists of projects ensuring their feasibility and adjust the schedule of developing projects under the plan to balance supply and demand.