Cement prices in Ho Chi Minh City have recently increased by VND12,000 – 15,000/t. Until now, the Government as well as cement makers have not signaled to rise cement prices yet despite increasing input costs of the industry. Hikes in cement prices as above mentioned have resulted from manufacturers cutting commission, transport fees, bonus, etc lowering agents’ profits. Therefore, agents rose prices by VND12,000 – 15,000 per kg.
According to the Vietnam Cement Association, industries are witnessing reduction in profits due to higher prices of inputs like coal, electricity, petroleum, clinker, etc. Last year, because of input cost rise, cement prices rose by nearly VND30,000 per ton. Therefore, at the current prices, manufacturers are suffering from losses.
All cement manufacturers complain that they cannot keep such a price level for long. Forecast says import prices of clinker this year might rise to nearly $30 per ton, pushing cost price of cement in the domestic market to over VND850,000 per ton.
However, many express their opinion that cement is a construction material of importance. Rising its prices thus requires a proper roadmap to ensure interests of both manufacturers and consumers as well as drive investment in this industry in the years to come.
