Vietnam’s export boost
Vietnam’s total cement and clinker sales expanded by 0.9 per cent YoY in 2020 to 97.5Mt, according to FiinGroup. Of this total, domestic cement consumption was 62.1Mt, declining by 5.6 per cent YoY. Meanwhile, clinker and, in particular, cement exports remained strong, surging by 14.9 per cent compared to a year earlier.
Both the positive long-term outlook for Vietnam’s cement market
as well as the ability to export to overseas destinations bode well for domestic cement manufacturers
The deceleration in domestic demand could be explained by the negative impact of COVID-19. Construction activities were disrupted due to stringent government measures to contain the spread of the virus, while real estate developers were reluctant to launch new projects given the negative market outlook.
Following subdued construction growth in the first half of 2020, the industry was showing signs of regaining momentum thanks to improvements in the disbursement of public investment funds in the 2H20. However, domestic cement demand stayed low and consumption declined over the full year.
