Vietnam’s cement industry expanded by 0.9% in 2020, mainly driven by buoyant clinker and cement export activity. As new export destinations continue to be explored, leading private cement firms to look to develop new facilities to meet demand from overseas, while the domestic market still holds much long-term potential for growth.
In the June 2021 Issue of International Cement Review, Mr. Hai Khieu, Manager of Market Research and Consulting Services (“FiinResearch”) at FiinGroup, shared an update on the current situation as well as the market outlook of the Vietnam cement market.
According to Mr. Hai Khieu, the Vietnam cement market still represents growth potential for domestic cement manufacturers, given both the positive long-term outlook for the domestic market as well as the ability to export to overseas markets.
Even though domestic demand slowed down in 2020 due to COVID-19, cement consumption, in the long run, is supported by local drivers including the Vietnamese Government’s effort to boost public investment and signs of recovery in the real estate market.
In terms of trading, Mr. Hai Khieu assessed Vietnam’s export outlook as positive. Given rising demand from “traditional” export markets including China, Bangladesh, and the Philippines, as well as efforts by local manufacturers in exploring new markets (i.e, Africa and the USA), cement and clinker exports will remain the key business strategy for leading private players such as Vissai, Thanh Thang and Xuan Thanh.
Amid COVID-19, leading private cement manufacturers are actively developing new facilities to fulfill rising demand from export markets as well as gain market share on the domestic front from small-scale manufacturers. Many expansion projects are being developed by local private groups, including Vissai, Long Son, Thanh Thang, Fico-YTL, and SCC-VN, and are expected to launch commercial operations in the next five years, boosting Vietnam’s cement capacity to 149.3Mta by 2025.
Read the full article HERE.
Explore in-depth analysis on key growth drivers, the outlook for 2021 as well as forecast analysis until 2030 on the latest Vietnam Cement Market Report 2021.