Vietnam cement industry continues to be oversupplied. In 2017, Vietnam cement industry had 3 new production lines with the designed capacity in 9.1 million tons/year which were operated. In 2017, cement industry continues to face many difficulties. Although domestic consumption has slightly increased compared to 2016, supply exceeding demand situation caused rough competition in the industry. Total in 2017, the number of produced cement reached 64.15 million tons, dropped 3.3% compared to the same period in 2016. Prediction for the period 2016 – 2020, the development in demand will be stable in 6-7%, meanwhile supply will keep increasing. In the period of 2020-2030, VIRAC forecasts that the growth rate of industry will attain about 8%/year and in 2024 – 2025, Vietnam supply and demand will be balanced.
Logistic is still a weakness of Vietnam cement companies. The linker supply in the North is redundant, while the demand in the South is increasing, which results to the transportation of linker from the North to the South. Difficulties in shipping process cause the transporting cost higher, making the cement price in the South more expensive than in the Middle and in the North. Besides, cement price in Vietnam is predicted to rise due to the climbing of material and energy cost, which may lead to the lower efficiency of the industry.
In the near future, direct sale to projects and industrial customers may become the main trend of the industry. There are 3 groups of cement supply in Vietnam: companies under VICEM accounting for 27% of total capacity in Vietnam, foreign enterprises and private companies with large scale. The internal competition is very stiff, with the development and dominance of large brands, smaller firms are facing bankruptcy or being merged to as they are not capable to compete with the big.
|Ha Tien 1 Cement Joint Stock Company
The Vissai Cement Corporation
Nghi Son Cement Company
VICEM Hoang Thach Cement Company Limited
Bim Son Cement Joint Stock Company
VICEM But Son Cement Joint Stock Company
Thang Long Cement Joint Stock Company
VICEM Hoang Mai Cement Joint Stock Company
Quang Ninh Cement and Construction Joint Stock Company
Sai Son Cement Joint Stock Company