Restriction for new cement projects

The Ministry of Construction wants to restrict new cement projects as shown in its new master plan on cement production for the next five years with a vision to 2025.

According to the government’s website chinhphu.vn, under the proposed master plan due to be submitted to the government, the Building Materials Department under the ministry suggests that new cement projects not be licensed in the coming years due to oversupply. The department also argues that cement projects consume too much energy at a time when the economy is facing the power crunch.

In the proposed master plan, the Construction Ministry also asks the government to approve nine new cement projects to replace the 13 licensed projects that are still inactive now. The ministry says that these nine projects are vital for certain localities where they are to be located, and furthermore, these projects use advanced technology.

Vo Quang Diem, deputy director of the department, says that tighter control over new cement projects should be established as many are using backward technology that is energy-consuming and hazardous to the environment.

“With production now far outpacing demand, the cement industry is exerting huge pressure on the infrastructure, especially the electricity industry,” Diem is quoted as saying.

As of end-2009, there were 97 cement projects in the country with combined capacity of 57.5 million tonnes, higher than domestic demand estimated at 50 to 51 million tonnes. The number of cement projects being put into production this year is l3 with additional output of 11.7 million tonnes, while the number and new output for next year is almost the same. To solve the overcapacity problem, the Construction Ministry has urged local cement makers to explore ways to ship their products overseas. – Saigon Times

Tags: Vietnam cement, Vietnam cement industry