In 2016, the Vietnam cement industry continued to oversupply at a 78.89% using rate out of total production, excluding export value, and the situation is likely to remain unchanged in the near future. However, the cement demand might change significantly due to the rising of infrastructure and real estate projects, but this is not guaranteed.
The quality of cement production depends on two factors: raw material and technology & equipment. Limestone used as raw material to manufacture portland cement have to satisfy the requirements of quality content of MgO and CaO. In terms of technology, manufacturing enterprises use rotary kiln dry method with two major equipment lines derived from the G7 countries and China. G7 machinery will provide higher productivity, however, materials play a more important role in deciding the quality of cement so small firms can consider Chinese equipment, while those from G7 countries are still the best choice for large enterprises.
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.
The “Vietnam Cement Comprehensive Report Q2/2017” elaborated by Vietnam Industry Research and Consultant Jsc. (VIRAC) draws an all-around picture about the cement sector in Vietnam, brings to readers a clear insight about the historical and current developing trends of the industry by categories: materials, production – consumption, export – import, price movement and distribution system. Specifically, the report analyzes the economic situation in general and the cement industry in particular through the latest data updated to Q2/2017, beside the forecasts about the output, scale and expanding trend of the sector in the future. It also give detail information about large businesses in the industry such as Ha Tien 1 Cement JSC., Vicem Bim Son Cement JSC., Vicem But Son Cement JSC. through analyzing their financial statements, technology status and market shares in order to position and identify the level of competitiveness among firms in the market.
– Ha Tien 1 Cement JSC.
– Vicem Bim Son Cement JSC.
– Vicem But Son Cement JSC.
– Vicem Hoang Mai Cement JSC.
– Vicem Hoang Thach Cement Company Limited
– Nghi Son Cement Corporation
– Chinfon Cement Corporation
– The Vissai Cement Group
– Quang Ninh Construction and Cement JSC.
– Thang Long Cement JSC.