Vietnam Ministry requests review of cement projects

Twelve cities and provinces have been asked by the Vietnamese Ministry of Construction to review cement plants in the localities under the industry’s master plan until 2020 with a vision to 2030. The request will involve the authorities of Hanoi, Haiphong, Hoa Binh, Bac Can, Ha Giang, Thanh Hoa, Nghe An and Thua Thien-Hu provinces.

The ministry’s requirement follows the prime minister’s approval to cancel five cement projects, comprising Cao Duong, Cho Moi, Viet Duc, Long Tho and Ngan Son from the industry’s master plan for 2011-20. The projects have a combined capacity of 910,000tpa.

The government is also delaying construction of nine cement projects namely Thanh Son, Tan Phu Xuan, Tan Tao, Yen Mao, Sai Gon Tan Ky, Phu Son, My Duc, Nam Dong and Minh Tam.

Local cement makers have been facing a lot of difficulties due to the large inventory and low domestic demand caused by the frozen real estate market. In addition, high production costs, high lending rates and rising input costs have also put a heavy burden on local cement producers.

Vietnam’s cement sales are predicted to rise by 1.5-3 per cent YoY to between 62Mt and 63Mt this year, including 48.5-49Mt of domestic sales and 13.5-14Mt of exports. At present, Vietnam’s cement output is estimated at 73Mta.