Cement industry in Vietnam facing big surplus capacities

1 Development of cement consumption in Vietnam (OneStone)

2 Development of consumption, production, imports and exports (OneStone)

3 Vicem’s Hoang Thach cement plant (FLSmidth)

4 Vicem’s Hai Phong cement plant (FLSmidth)

5 Vicem’s Hoang Mai cement plant (Hoang Mai Cement)

6 Ha Tien1 cement plant at Binh Phuoc (Polysius)

7 Holcim cement terminal (Holcim)

8 Nghi Son cement plant (IBAU HAMBURG)

9 Phuoc Son cement plant owned by Lucky Cement (Sinoma)

10 Chinfon cement plant (Chinfon Cement)

11 6000 t/d Cam Pha cement plant (ABB)

12 Thang Long’s 6000 t/d cement plant (Polysius)

13 Dopol preheater at Cosevco Cement (Polysius)

Quang Son Zementwerk von Vinaincon (Fives FCB)

ETA-Klinkerkühleranlage bei TAFICO (Claudius Peters)

16 Song Thao cement plant (Sinoma-TCDRI)

17 Project development up to 2013 (OneStone [1])

Vicem’s Hoang Mai cement plant

Summary: In recent years, no other country in South East Asia has experienced such dynamic development as Vietnam. Its economic growth is only slightly lower than those of China and India. Since 2001, the average annual growth in cement consumption has been approx. 12.5 %. Vietnam managed this rate of growth without resorting to a high rate of importation. This feat was achieved by a cement industry that had been in a state of devastation in 1975, the year in which North and South Vietnam were reunited. In 2010, cement production capacity is set to reach a figure of 78 million t/a. This means that Vietnam will possess significantly more capacity than actually necessary for covering its own requirements. This report describes the consequences of this situation and outlines the overall development of the cement industry.

1 Economic development

Since the last decade, Vietnam has been one of the fastest growing economies in the world. A spirit of great commitment is to be felt everywhere in the country, as well as hope for a better future. The country has also come through the global economic crisis surprisingly well. It had an economic growth of 5.3 % in 2009, which is only marginally lower than the previous year’s figure of 6.2 %. Particularly at the end of 2009 there was a clear upturn in economic growth, with 6.0 % in the 3rd quarter and 6.9 % in the 4^th quarter. To stimulate the economy, the government...