Move to curb cement projects

The Vietnam Cement Association (VCA) has made a recommendation to the Government to curb further licensing for cement production projects, according to the association’s chairman Nguyen Van Thien.

“The association also made a suggestion for the Government to re-consider cement projects which have already been approved but have yet to start,” said Thien.

VCA statistics indicate the country currently has 105 cement production lines with the capacity to produce more than 61 million tonnes per year.

Estimated cement production for this year will be roughly 50 million tonnes. With consumption roughly 44-45 million tonnes, rising to 48-50 million tonnes next year, resulting in an estimated excess supply of 10 million tonnes.

With this output, it was estimated that by the end of this year Vietnam will be among the world’s top ten cement producers and hold the record for production in Asia .

“It would not be easy to export the excess cement because high freight costs would make it less competitive,” said Thien.

According to a cement industry master plan until 2010, a total of 53 cement production investment projects will be completed and put into operation during the 2005-10 period. By 2011, the number would rise to 63.

With the increasing rate, experts forecast that the country would have the capacity to produce roughly 130 tonnes of cement by 2020, leading to an excess of roughly 30 million tonnes.

Tags: Vietnam business news, Vietnam cement industry