Vietnam Cement Market Report 2024

FiinGroup is pleased to introduce Vietnam Cement Market Report 2024, the first and most comprehensive issue on the Vietnam cement industry. This report presents a broad range of topics, both sector-specific and cross-cutting market issues.

What’s New? Clinker and cement demand weakened continuously in both domestic and export markets during 2023 and Q1.2024, resulted from stagnation in site clearance for infrastructure development, severe pressure from high exchange rates, the frozen real estate market as well as sluggish demand from China and fierce international competition. Meanwhile, cement manufacturers started to stabilize the MSRP during 2023.

This 2024 issue provides the latest information on the current supply-demand situation in Vietnam cement industry, covering industry data & operational information up to the first three months of 2024. This report also provides the in-depth analysis of key growth drivers, market outlook for 2024 and supply-demand forecast until 2030. Especially, the analysis of retail bagged cement prices for PCB30 and PCB40 by region, key brands and production cost are also included in this report.

Below are the most critical findings in our 10th issue:

1. Total clinker & cement sales in Vietnam decreased by 6.5% in 2023 due to the weak demand from both domestic and overseas markets. Total clinker and cement sales in Vietnam witnessed a decrease of 6.5% (y-o-y) to 86.0mn tons in 2023, resulted from the shrinkage demand from both export markets and weak domestic consumption. In particular, cement domestic cement consumption decreased moderately by 9.0% to 56.6mn tons while total clinker and cement export activities fell slightly by 1.3% to 29.4mn tons. In Q1.2024, the slowdown continued with a contraction of 6.2% (y-o-y) and 2.7% (y-o-y) for domestic and export markets, respectively.
2. The surge in designed capacity for clinker & cement in Vietnam is forecasted to continue in the next 3 years with new facilities by private cement manufacturers despite gloomy market outlook. In particular, there are two new facilities starting commercial operation in 2023, posting an increase of 1.9mn tons in clinker production capacity and 3.3mn tons in cement production capacity. The average utilization rate of Vietnam cement industry declined from 58% in 2022 to 55% in 2023, resulted from weakened demand and the commercial launch of the new 2 facilities in the year.
3. Local private players continued to dominate the Vietnam cement market in 2023 with a over 48% of the total market share. Local players accounted for over 48% of market share by domestic cement sales volume in 2023 with big names including Long Son, Vissai, Xuan Thanh, Cong Thanh & Thanh Thang. Meanwhile, leveraging strong brand position, VICEM and selected foreign players such as SCC-VN, Nghi Son and SCG managed to achieve a high average utilization rate in 2023.
4. The profit margin of listed cement manufacturers declined in 2023. It could be explained by (i) the low utilization rate given the oversupply situation in Vietnam’s cement market, (ii) weak demand from both domestic and export markets, and (ii) new export tax from government  in clinker since 1^st Jan 2023, despite the stablization of import coal prices during 2023. FiinGroup forecasts that profit margin of Vietnam cement manufacturers shall keep facing continuous challenges in the times to come including low utilization rate, and downward trajectory in demand from the China market.
5. In 2024, the domestic cement demand is predicted to trend downward, whereas there are positive signs for export in the year. The negative outlook of the domestic market could be explained by low public investment disbursement despite high target from the Prime Minister. On the other hand, the positive outlook of export markets could be attributed to solid demand from Philippines, Bangladesh and other new markets including the U.S. and Singapore.

We would like to provide you with the Demo.
 
Table of contents and summary of key findings can be found HERE.

You can also check out other reports covering key sectors of Vietnam including Cold Chain, Consumer Finance, Banking, Healthcare, Housing Builders, and Plastic etc. on our website: http://fiinresearch.vn

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