Cement industry calls for support amid slow sales
  • | | April 11, 2024 11:07 PM
The Vietnam Cement Association has just called for support from the government as slow demand has threatened their operations.

Vietnamese cement producers said they have encountered challenges in the domestic market due to low demand. Photo for illustration.

In their latest report sent to PM Pham Minh Chinh, the association said they have faced difficulties since 2022.

"The country currently has 61 cement producers with a total capacity of about 117 million tonnes per year," the report said. "However, we could only sell 87.80 million tonnes last year including 56.60 million tonnes domestically and 31.20 million tonnes for export."

Producers said they have encountered challenges in the domestic market due to low demand.

"Many public investment projects have seen slow progress while some parts of road construction projects are still carried out following old methods that do not use cement," they explained. "The real estate sector has yet to recover with few housing projects being developed."

The association has proposed that the PM urgently take measures to boost domestic consumption and waive or reduce export taxes on clinker. They have also asked the PM to direct banks to extend debts, reduce interest rates for domestic cement producers, and discourage foreign companies from investing in the local cement industry.

The Vietnamplus cited the SSI Securities Corporation's latest report on Vietnam's cement sector outlook in 2024 as saying that first-quarter domestic cement consumption would be the lowest since the third quarter of 2021 (the Covid lockdown period) due to seasonal factors such as the Lunar New Year holiday and weak demand.

However, cement sales volume would likely see a minor recovery from the second quarter of this year due to resumed construction activity. In addition, major public investments could offset weak demand during 2024.

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