Vietnam proposes suspension of new cement licensing

Vietnam proposes suspension of new cement licensing
18 January 2011

Vietnam’s Ministry of Construction plans to present a proposal to the Prime Minister to suspend licensing of new cement production projects.

The move is intended to curtail the sector’s overheating development, and unnecessary waste of energy. For each million tons of cement produced in Vietnam, the power sector has to supply 90-95 million kWh. Vietnam has witnessed a rapid growth of the building materials production industry, including the cement sector which has put pressure on the power sector.

Vu Quang Diem, Deputy Director of the Ministry’s Building Materials Department, said in terms of the building materials production sector, the cement sector was the most energy-inefficient.

Also, the new cement projects, many of which relied on out-of-date technology were putting undue burden on the power sector.

The ministry has proposed a suspension of investment in 13 such projects, which had already been approved by the govt. Alternately, it has proposed the construction of nine projects which would have a beneficial affect on the development of the region.

The Ministry has also urged the Government to strictly implement the regulation that forced cement factories to re-use exhaust fume heat discharged to generate power. This could save 30 per cent of the electricity they consumed.
Published under Cement News