With Cemtech Asia 2026 in Thailand on 14-17 June, 2026 approaching, it is an appropriate time to examine the regional dynamics of Southeast Asia's cement markets. Cement producers are navigating a mixed landscape of recovering construction demand, export dependence, and increasingly formal decarbonisation plans. Given unfolding events in the Middle East, rising energy costs are a key area of focus.
Thailand’s cement market is expected to continue expanding, supported by infrastructure and construction activity. This growth is driven by continued urbanisation and significant government projects, such as smart city initiatives, airport expansions, and high-speed rail. Growth is further supported by the Ministry of Transport's plans for over THB200bn (US$6bn) in highway and rail expansions announced in 2024.
Decarbonisation efforts
SCG Cement, Thailand's market leader, is shifting towards low-carbon cement, aiming for a 10-30 per cent reduction in CO2 emissions compared with traditional OPC. SCG is focusing on its alternative fuel programme to reduce carbon emissions while increasing energy resilience. The company has achieved an alternative fuel rate of 45 per cent by increasing the use of agricultural waste and biomass, utilising technologies like external combustion chambers and dedicated alternative fuel burners. Energy efficiency has also been a company pillar, with the example of the Ta Luang cement plant redefining company best performance with its 17.5MW solar plant and waste heat recovery system.
Looking ahead, 'deep technology' is expected to become more relevant after 2030, with carbon capture, utilisation, and storage (CCUS) targeted for 2050. SCG also operates Southeast Asia's first industrial heat battery at its Saraburi plant, supplying 2.3MWth of continuous steam by combining power from the grid and a nearby floating-solar farm.
Similarly, Siam City Cement (INSEE), also based in Thailand and with a regional footprint of 15.63Mta, sees clinker reduction, energy efficiency, and alternative fuels as the nearest-term decarbonisation levers, with carbon capture as a later-stage solution. Containing costs remains a key focus for the company, which has avoided procurement issues related to tensions in the Middle East by sourcing energy from Indonesia.
Philippines eyes demand recovery amid higher cost pressure
In the Philippines, the industry expects cement demand to recover in 2026, supported by government infrastructure spending and broader economic growth. However, that recovery is unfolding alongside cost pressure from higher fuel prices and a more protected import environment. The Department of Trade and Industry’s three-year safeguard on imported ordinary Portland and blended cement may support domestic producers, but it could also deter spot imports at a time when market participants are watching energy costs closely.
Vietnam's domestic market is recovering, but exports are critical
Vietnam’s domestic market has shown stronger momentum in early 2026, with cement dispatches rising by 22 per cent YoY to 18.29Mt in 1Q26. Following increasing dispatches in the closing months of last year, it is tempting to see recent developments as encouraging signs for a recovery in Vietnamese cement demand. Alongside the recovery in volumes, Vietnam’s producers are also stepping up operational modernisation, with VICEM highlighting AI and digital technologies as part of broader efforts to improve safety, reduce emissions and support greener production.
Even so, the sector remains heavily export-oriented. In March 2026, the country exported 3.49Mt of clinker and cement – a 15.1 per cent YoY increase following a 25.1 per cent rise in February. Bangladesh remained the largest buyer, importing 522,474t in March (up 42.6 per cent YoY). Conversely, exports to some nearby markets face headwinds, with volumes to the Philippines and Taiwan falling to 281,042t and 122,880t, respectively. It has been difficult for Vietnamese cement traders to operate in these markets. The Philippines has imposed a three-year safeguard on imported cement, while Taiwan has introduced a five-year anti-dumping duty on Vietnamese cement and clinker.
Faster decarbonisation plans in Indonesia
Indonesia’s Ministry of Industry is accelerating the national cement industry’s transition to a more sustainable industry model through a five-pillar decarbonisation strategy comprising energy and material efficiency, fuel and material substitution, production process upgrades, electrification and renewable energy, and carbon capture technology.
“The global cement industry is currently navigating a complex business environment shaped by three major influences: urbanisation, decarbonisation and digitalisation,” said Emmy Suryandari, Head of the Ministry’s Standardization and Industrial Services Policy Agency.
In 2025, Indonesian domestic demand continued to contract, falling by 1.5 per cent to 63.912Mt in 2025. However, exports saw a third consecutive year of double-digit growth, rising by 14.4 per cent to 13.656Mt in 2025, 90 per cent of which was clinker. The primary export destinations were Bangladesh, Australia, the Philippines and Sri Lanka.
Summary
Across Southeast Asia, cement producers are tapping into the Bangladesh market to boost exports. Energy and transport costs are forcing some companies to pass on higher production costs. There is a strong focus on energy efficiency, alternative fuels, and renewable energy, while access to regional fuel sources has enabled some producers to partially insulate themselves from disruption linked to the Middle East crisis. For now, carbon capture remains a longer-term rather than immediate decarbonisation solution in the region.
