Vietnam market remains sluggish

The Vietnamese Ministry of Construction said that cement consumption was estimated at 3.7Mt in February, accounting for 7.4 per cent of this year’s plan. The cement market remained subdued though producers continued to offer 3-5 bags of cement for free on 100 bags of cement.

The Ministry’s plan foresees a cement demand of around 56-57Mt, of which the domestic market is expected to
absorb 48.5-49Mt. The remaining 7.5-8Mt. is earmarked for exports, which in February touched 0.52Mt.

However, most cement producers are reported to be running at 70 per cent of capacity with factory delivery price
swinging between VND1.4-1.7m/t.

Although the first quarter of this year is almost over, purchasing power in the market remains weak as the
economy is still in slump, urging consumers to become more cautious in spending.