Vietnam has called for domestic exporters to cooperate in fair pricing and is proposing to establish an association for cement and clinker export firms as the country looks to alleviate an increasing cement surplus.
According to local press reports, Vietnam’s Ministry of Construction is proposing the new association which would help curb 'unhealthy competition' among these export companies as some local firms have cut prices. A proposal has been submitted to the prime minister for approval, according to the Dau Tu Chung Khoan newspaper.
Vietnam has eight cement and clinker exporters, six of which are domestic companies while two are joint venture companies. The ministry has called on local players to cooperate instead of undercutting each other to overcome the large inventories the industry is currently facing.
The Vietnam Cement Association has also reportedly recommended a common export price for members but some still export at lower prices.
Earlier, the ministries of Construction and Transport signed a memorandum to increase the use of cement in transport projects around the country. Deputy Minister of Construction Nguyen Tran Nam said the VCA's members should exchange information about the volume and price of the cement and clinker they export.
Vietnam had around 2.8Mt of cement in inventories at the end of June. This figure is expected to rise to 6Mt by the end of the year.
