The prices of construction materials in Vietnam will not increase in coming months despite rising costs on many other products as a result of higher petrol prices, said the deputy general director of Viet Nam Cement Corporation, Vu Van Hiep.

Fuel prices have impacted on cement production costs by between VND7000 and VND8000 per tonne, he said. By producing 6Mt of cement, the company’s costs would be VND36 billion (US$2.25m) higher, he said. The corporation has no intention of raising prices in the foreseeable future, said Hiep.

Cement is now sold at between VND740,000 (US$46) and VND760,000 (US$47) per tonne in the country’s north, and between VND940,000 (US$58) and VND960,000 (US$60) per tonne in the south. The corporation presently commands a 50 per cent share of the domestic cement market, giving it influence in setting prices nation-wide, he said.

The company predicted that cement production would rise to 12Mt later in the year, and with more than 1.4Mt in reserve, producers nation-wide will be able to meet local demand.