Three major problems of Vietnam’s cement sector

Vicems Ha tien1

The cement industry in Vietnam is struggling, several plants operate at low capacity utilisation. Vietnam’s rated cement capacity is 122.3 Mta, however 4 lines with 11.4 Mta capacity have not been started yet, while they have to service debts. The local cement consumption is not improving (photo: Vicem’s Hatien1) with a decline by -8.1%, YoY in the first 4 months 2024. The exports increased by +5.2% YoY in first 4 months 2024 (cement +3.1%, clinker +8.7%), but this does not outweigh the huge decline in the export prices. This year the export prices dropped to 31-32 US$/t for clinker and to 36-37 US$/t for bulk cement, while in 2022, FOB prices have been still 46-48 US$/t and 51-53 US$/t, respectively. Accordingly, the situation caused some cement producers at risk of bankruptcy.