VIETNAM CEMENT INDUSTRY
Over the past years, the global cement production has sharply increased from 1.38 billion tons in 2002 to 4.1 billion tons in 2017 (equivalent to 73.4% compared to the installed capacity). In 2017, the total cement installed capacity was estimated at over 6 billion tons, a slight increase over 2016. There have been currently about 160 countries producing cement in the world, in which, cement production in Asia has been leading the world, accounting for 80.2% of the global cement produced volume in 2016 with China taking the lead.
Vietnam cement market continues to have excess supply. In 2017, Vietnam Cement industry has had three new cement production lines with the installed capacity of x.x million tons per year coming into operation. Therefore, by the end of 2017, there were 83 cement production lines in the country with the total capacity of xx.x million tons. In 6M/2018, the number of produced cement was estimated about 37.72 thousand tons. The quantity of exported cement and clinker in 6M/2018 reached xx.xx million tons, sharply increasing over 2017. In general, Vietnam cement industry has been continuously oversupplied in the coming years, but the situation would be more complicated and would change by region.
Three groups of cement suppliers in Vietnam: Companies group belonging to VICEM (VICEM is 100% state enterprises with many subsidiaries and associated companies). The second group is foreign cement companies, including LafargeHolcim (Europe), Nghi Son (Japan), Chinfon (Indonesia), Thang Long (Indonesia) và Luks (Hong Kong)…Group of private companies having large-size in the locality, including Xuan Thanh, Cong Thanh and Vissai, besides that there are many small cement enterprises in the locality.
Competition within the industry, along with large cement companies are jointly capturing the market, small cement firms are forced into bankruptcy or merger because they are not competitive enough. It is forecast that in the period 2016 – 2020, the increase in demand will be stable at 6-7%.
Ha Tien 1 Cement Joint Stock Company
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