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Overall assessment of the Vietnam Cement industry in the past 10 years

According to the Ministry of Construction, in the last 10 years, Vietnam's cement production capacity has grown to about 120 million tons of cement, among the top in the world.


The Ministry of Construction said that for the Vietnam cement industry, currently, the total number of cement production lines invested nationwide is 92 lines with a total capacity of 122.34 million tons/year (of which, 4 line with a total capacity of 11.4 million tons of cement/year has been invested but not yet put into operation, due to the product not being sold).


Investment lines from 2011 to present all use modern, advanced technology in the world that meets European standards. In particular, there are the most modern cement production lines in the world such as line 2 and line 3 of Xuan Thanh Cement Factory, Ha Nam province.


The number of investments in cement plants over time shows that by 2010, the whole country had invested in 59 lines with a total design capacity of 62.56 million tons/year, of which 29 lines had a capacity of 62.56 million tons/year. Small capacity from 0.25 - 0.65 million tons/year, 13 production lines with capacity from 0.75 - 0.91 million tons/year.


In the period from 2011 to 2020, the country has invested in 26 lines, with a total capacity of 41.48 million tons/year, bringing the total number of lines by 2020 in the country to 85 lines, with a total capacity of design is 104.04 million tons/year.


From 2021 to now, the country has invested in 7 production lines, with a total design capacity of 18.3 million tons/year. The average investment capital during this period is about 2,500,000 - 3,700,000 VND/ton depending on the country's synchronous equipment.


The total investment in construction of cement plants is very large, with a total design capacity of 122.34 million tons of cement/year, the total financial investment in construction of cement plants is estimated at current value. now up to 500,000 billion VND (equivalent to 20 billion USD). In particular, it is estimated that financial sources from domestic banks and State capital account for about 75% of this total investment.


Overall assessment of the Vietnam Cement industry

Regarding clinker and cement production: in the past 10 years (2014 - 2023), clinker and cement production output generally increased. Of which, clinker and cement production in 2021 will peak (110.4 million tons). From 2023 until now, clinker and cement production will decline seriously. Total production output for the whole year 2023 only reaches 92.9 million tons, the average operating lines of the whole industry only reach 75% of total design capacity.


In 2023, there are 42 production lines that will have to stop production for about 1 - 6 months, of which some lines will have to stop for the whole year (corresponding to the capacity having to stop operating about 30% of the total design capacity of the country). ).


In 2024, it is expected that by the end of June 2024, the total national clinker and cement production output will reach about 44 million tons of cement, equivalent to the same period in 2023 and factories are also expected to only reach about 70 - 75 million tons of cement. % of total design capacity (before 2022, factories often operate at over 85%, even in some years at over 95% of design capacity). Accumulated inventory is about 5 million tons.


Cement factories in our country have produced many types of cement products to serve the construction of civil and industrial projects, and have produced high-quality, fast-hardening, fast-setting cement. heat-resistant, fire-resistant, durable in marine environments, well cement for oil and gas exploitation...


Regarding consumption: in the past 10 years, total annual clinker and cement consumption output has generally increased, The highest is that in 2022, the whole industry's consumption will reach 108.4 million tons. From 2023 until now, clinker and cement consumption will decline seriously. Total consumption for the whole year 2023 will reach 87.8 million tons, equal to 88% compared to 2022. It is expected that by the end of June 2024, the total consumption of clinker and cement will reach about 44 million tons, equivalent to the same period in 2023.


Domestic consumption is mainly cement, which in the past 10 years has generally increased. However, consumption growth is very low, only averaging about 2.3%/year, while national GDP increases by an average of about 5-7%/year.


In 2023, domestic cement consumption is very low, reaching only 56.6 million tons (equal to 83.5% of 2022), this is the largest decline ever in the cement industry. The domestic cement consumption market share is generally less volatile, the North accounts for about 34 - 35%, the South about 34 - 35%, the Central and Central Highlands accounts for about 30 - 31%. Domestic cement selling prices from 2022 until now have not increased due to strong competition between cement factories, and even tend to decrease, averaging about 1,400,000 - 1,600,000 VND/ton in regions. Plains and midlands depending on cement brands; about 1,650,000 - 2,000,000 VND/ton in remote areas, Central Highlands...


Export consumption includes two products: clinker and cement. Over the past 10 years, export output of clinker and cement has generally increased. However, from 2022, the amount of clinker exported will decrease significantly, the total amount of clinker exported for the whole year 2022 will only reach 15.2 million tons (equal to 52.9% in 2021) and continue to decline to 10.9 million tons in 2022. 2023 (equal to 71.7% in 2022).


It is estimated that by the end of the first 6 months of 2024, the amount of clinker exported will only reach about 5.4 million tons. Such a decline in clinker exports is very difficult for manufacturing enterprises. In the years 2019 - 2022, the average export value of clinker and cement is about 1 - 1.3 billion USD/year. From 2023 until now, the export value of clinker and cement will decline due to a sharp decrease in export prices...

(vatlieuxaydung.org.vn)



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