Nine proposed cement projects in Vietnam are to be cancelled by the government following calls by the Vietnam Building Materials Association to help bring cement capacity more in line with market trends.
According to reports by Vietnam News Brief Service, the projects cancelled by Vietnamese Prime Minister Nguyen Tan Dung, include Ha Tien-Kien Giang, Truong Son- Ro Li, Hop Son, Ngoc Ha, Vinafuji Lao Cai, Thanh Truong, Son Duong, Quang Minh and Cao Bang. Each was reported to have a capacity of 2500tpd of clinker.
The PM has also agreed to extend the deadline for the construction of seven other projects to after 2015. These include He Duong II, My Duc, Thanh Son, Tan Thang, Do Luong, Tan Phu Xuan and Nam Dong.
To ensure the balance between the cement supply and demand, the prime minister has asked the Ministry of Construction to cooperate with other ministries and agencies. He also called for the Vietnam Cement Association and Vietnam Cement Industry Corporation (Vicem) to facilitate cement export.
Vietnam is predicted to have a huge cement inventory of 14-15Mt by 2015 when output is expected to reach 90Mt against forecasted consumption of 75-76Mt. Analysts predict that the cement surplus will persist in the coming years if the government does not take drastic measures, including stimulating demand and reviewing current cement projects.
