Cement production at La Hien Cement Joint Stock Company. (Photo: VNA)
According to the Ministry of Construction, cement output in the first six months reached 49.8 million tonnes, up 18 per cent, while sales climbed 14 per cent to 54 million tonnes.
Domestic sales surged 18 per cent to 37.5 million tonnes, reflecting stronger local demand. Exports rose 6 per cent to 17 million tonnes, with clinker shipments up 19 per cent. Export revenue stood at USD 635 million, up 1.7 per cent, with the Philippines, the US, Singapore and Malaysia as key buyers.
Export prices remain under pressure from competition, forcing producers to keep late-2024 price levels to secure orders. Inventories reached 4.5 million tonnes, equal to 20 days of output.
Falling coal costs boosted margins, though higher electricity prices weigh on producers. Imported coal prices dropped to USD 98.6 per tonne, 22.6 per cent lower than a year earlier, while average electricity prices rose 4.8 per cent from May 10.
Several producers saw profit growth: VICEM Ha Tien posted after-tax profit of VND 112.3 billion (approximately USD 4.4 million), up 2.45 times; VICEM Bim Son earned VND 64.2 billion (approximately USD 2.5 million), up 150 per cent; and VICEM But Son reported VND 12.4 billion (approximately USD 0.5 million).
Public investment and recovering construction activity are expected to drive demand this year, said Nguyen Van Thang, director of construction services firm Gemtec.
Exports in the coming months will depend on demand from South Asia and Southeast Asia, as well as protectionist measures and transport costs.
Industry expert Pham Ngoc Trung said the sector should restructure products and shift to cleaner energy. Reducing clinker use, producing higher-value cement and adopting alternative energy would cut costs and enhance competitiveness.
FPT Securities forecast domestic demand to grow 2.38 per cent annually between 2024 and 2039, backed by housing prospects. Export growth, however, is expected to remain limited due to weak Chinese demand and rising protectionism.
Vietnam currently operates about 90 cement lines with an annual capacity of 106 million tonnes.
