Vietnam cement surplus on the rise

With many new cement plants slated for production next year, industry insiders expect Vietnam to have a huge surplus of cement in the coming time.

The current cement output in the country, one of the world’s ten biggest producers, is around 50 million tons while demand is estimated at around 45 million tons.

Nguyen Ngoc Anh, general director of Vietnam National Cement Corporation, said the surplus would begin to grow next year when many new plants started production.

Cement output would continue to surge, to 115 million tons in 2015, so local demand, expanding by only 5-7 percent a year, would not be able to catch up with supply, he said.

Producers said the surplus this year could already be a big problem as demand in the Vietnamese marketplace has remained low due to a prolonged rainy season

An expert said prospective investors should think about the rising surplus before starting any cement projects in Vietnam.

As supply will likely exceed demand, it is better to cancel a project than to build a plant that will not run, he said.

Last month, Vietnam’s producers asked the government to stop licensing any more cement projects.

Tags: Vietnam business news, Vietnam cement industry