Vietnam's cement sector sees exports rise on higher Chinese demand

Vietnam's cement sector sees exports rise on higher Chinese demand
11 September 2020

The Vietnam Cement Association (VNCA) shows that the 1H20 recorded a 12 per cent decrease in the industry’s consumption compared to the same period for the domestic consumption channel. The reason comes from the slowdown in construction activities. However, recently, cement demand has gradually recovered. Noticeably, the export volume maintained the growth rate thanks to the significant increase in demand from the Chinese market since the second quarter.

The latest clinker and cement exporrt statistics show that in the past seven months, the cement industry has still brought in US$732m by exporting 19.5Mt of cement. Compared to the same period last year, the export volume increased by nearly 2Mt. This is driven by China's demand for infrastructure construction, which went up 35 per cent YoY and accounted for 52 per cent of Vietnam cement’s total export volume.

It is forecast that Vietnam’s cement consumption in the next months will recover by three per cent, as the country accelerates the disbursement of public investment. In 2021 demand is expected to pick up by 3-5 per cent thanks to the recovery of macroeconomics and infrastructure construction activities, reports Saigon Online.

The government has been speeding up the disbursement of public investment capital, so about VND700trn (US$30bn) will be spent this year. Of which, VND200trn will be allocated for major infrastructure projects, such as the North-South Expressway and Tan Son Nhat Airport.

Published under Cement News