Construction Ministry blocks new cement plants

The Ministry of Construction has asked the people’s committee in five cities not to approve any more cement plants until 2020 because of ample supplies.

Vietnam had 97 cement plants in December with capacity of producing 57.4 million tonnes annually. Another 13 plants with a total 11.7 million tonnes capacity will open this year exceeding demand by an estimated 2 million tonnes.

More cement projects have already been approved for the following years with 12 with total capacity of 9.35 million tonnes in 2011, and seven in 2012 adding an additional 6.72 million tonnes capacity, and seven more in 2015.

The ministry predicts there will be an oversupply even if there are no new approvals.

This year’s estimated production is 102 million tonnes, 7 million tonnes more than the predicted demand.

In late 2009, the ministry reported to the Prime Minister about the forecast and gained approval to stop approvals for new cement plant projects in Hanoi , HCM City , Hai Phong, Da Nang and Can Tho.

Tags: Vietnam cement industry