Cement export goal set at 1mil tonnes

The Viet Nam Cement Industry Corporation (Vicem) intends to lift its exports to 1 million tonnes of cement this year, based on concerns that the cement surplus may lead to harsh competition on the domestic market.

Vicem general director Nguyen Ngoc Anh said that the corporation has tried to boost exports as the corporation this year is due to put an additional 6-7 cement production lines into operation, lifting its total output to nearly 20 million tonnes.

Vicem this year plans to produce about 19 million tonnes of cement, 1 million tonnes of which is for export. The corporation expects to earn VND22.5 trillion (US$1.18 billion) in revenue and a minimum profit of VND1.43 trillion ($75.3 million).

To prepare for the export boost, the corporation has undertaken fact-finding trips to a number of potential markets including Cambodia, Laos and China.

The corporation’s subsidiaries including Cam Pha, Hoang Thach, Ha Tien and Hoang Mai have so far exported their products to Africa, the Middle East and Cambodia for the last five years, however, export volumes have remained insignificant.

The Ministry of Construction recently directed relevant bodies to plan for cement exports to deal with the current domestic cement glut.

The Viet Nam Cement Association forecast that this year’s cement demand would surge by some 4-5 million tonnes to 48-50 million tonnes; leaving roughly 10 million tonnes redundant if the existing cement plants run at full capacity.

Meanwhile, it is expected that 13 new cement production lines would come into operation this year with an additional design capacity of 11.7 million tonnes per year, and 12 new lines in the following year to churn out another 9.35 million tonnes per year.

Currently 90 enterprises operate in the field of cement production and trading. Under the directive, the Ministry of Construction is scoping Bangladesh, the Middle East and Africa as potential markets.

Tran Van Huynh, chairman of the Viet Nam Construction Materials Association, believed that many domestic cement enterprises may attain success abroad thanks to their up-to-date production technologies.

The cement industry is currently investing in 40 cement factories with annual capacity of 42.64 million tonnes, using the latest in world class new technology.

However, experts warned that cement exports may not bring attractive returns because of high transportation charges. Moreover, cement plants have to meet strict technological, production line and environmental protection requirements.

In addition, increasing electricity and coal costs may also affect prices.

VietNamNet/Viet Nam News

Tags: Vietnam Cement export, Vietnam cement industry