Vietnam’s emerging trends
Amid challenging market conditions and higher production costs, energy efficiency and decarbonisation have emerged as key development trends in the Vietnamese cement sector. These measures are helping producers optimise operations as well as reduce energy costs and carbon emissions, all while strengthening competitiveness.By Hai Khieu, FiinGroup, Vietnam.
Decarbonisation and energy efficiency are two of the key issues that face the Vietnamese cement industry as
the country aims to lower its carbon emissions and improve its environmental record going forward
Vietnamese cement consumption recorded a slight decline in 2022 to 62.2Mt versus 62.7Mt a year earlier, driven by low public investment disbursement for infrastructure projects and a struggling real estate market. In particular, since the third quarter of 2022, real estate developers with high leverage have faced a liquidity crunch due to tightened monetary policy and stricter regulations on corporate bond issuance resulting from violations of current regulations of corporate bonds. In addition, lengthy and complicated construction licensing procedures, especially in the largest cities such as Hanoi and Ho Chi Minh City, have resulted in delays to many property projects and thus stagnant residential construction activity.
