Demand in 2023 estimated at 100-105 million tons, up 7-10%, but oversupply remains an issue.
The Ministry of Construction has warned cement companies to closely monitor market developments and adjust production to prevent cement supply exceeding demand.
Demand this year is estimated at 100-105 million tons, up 7-10 percent compared to 2022. Domestic consumption is expected to reach 60-65 million tons, with the remainder being exported.
Cement production and consumption last year and forecasts for this year show that the cement sector will continue to face difficulties, in particular excessive supply, according to the ministry.
China is the largest recipient of Vietnamese cement but construction demand in the northern neighbor is weakening, leading to a sharp decline in cement exports to the country.
Many cement and clinker importers also continue to apply trade protection measures to protect domestic industries.
The ministry said businesses need to have a long-term production and trade strategy and the State will introduce suitable policies to adjust prices of essential products like electricity, coal, and gasoline, which are inputs for cement production.
The sector should strive to cut production costs to reduce cement prices and ensure a balance between supply and demand.
Vietnam has over 130 cement production lines with a total capacity of more than 107 million tons a year.
Read more: Cement Industry Report