Amid weak domestic demand and rising costs of electricity and coal, the Vietnam Cement Association (VNCA) is focusing on boosting domestic consumption. The current domestic supply of cement is estimated at 60 – 62Mt, far exceeding demand. The excess 30Mt is planned to be exported, with cement and clinker exports already rising in April 2024 by 12% year-on-year to 2.85Mt. In the first quarter of 2024, exports grew by 4.6% to 10.9Mt compared to the same period in 2023.
The VNCA notes ‘challenging’ conditions in major markets, including China’s oversupply and protectionist measures in the Philippines, Central America and South Africa. To counter these hurdles, the VNCA proposes several government-led initiatives to increase domestic consumption and help manufacturers, including tax relief on clinker exports and financial incentives such as reduced interest rates for local producers.
