Vietnam: 2016 sales goal looks unlikely

Vietnam: 2016 sales goal looks unlikely
24 October 2016

Concerns have arisen that the Vietnamese cement industry will struggle to meet its sales target of 75-77Mt this year as a result of ‘market difficulties’, as reported by Viet Nam News. The 2016 target is 3.2-6 per cent higher than 2015. To meet this target a minimum of 20Mt will need to be sold in the fourth quarter, amounting to 7Mtpm.

Chairman of the Vietnam Cement Association, Nguyen Quang Cung, said meeting the target would be hard, citing the decrease in exports as a key factor.

According to statistics produced by the Ministry of Construction, 55.25Mt of cement were sold in 9M16. Of this total, approximately 43.55Mt were sold domestically, representing a 7.7 per cent YoY increase. However, exports of cement and clinker declined two per cent YoY in the given period, reaching just 11.7Mt. This fall has been attributed to competition with other producers from Thailand and China.

Published under Cement News