Vietnam HCMC proposes addressing illegal cement capacity expansion

The People’s Committee of Ho Chi Minh City has asked the Ministry of Construction to handle some cement producers in the city due to their illegal capacity expansion, which was detected by the ministry’s inspection team earlier, according to Viêt Nam News.

A branch of Thang Long Cement JSC was allowed to produce 1.25Mta, but the unit has increased its total capacity to 1.4Mta since 2011.

A branch of Chinfon Cement Co received a licence to produce 0.5Mta. However, since 2017output has been raised to 0.784Mta.

Siam City Cement’s Hiep Phuoc grinding plant in the city’s Hiep Phuoc Industrial Zone is permitted to produce 0.5Mta but is reported to breach environmental legislation by expanding to 0.95Mta.

In addition, three other companies were sanctioned for illegally installing fly ash silo systems without permission, namely Fico Tay Ninh Cement JSC, Chinfon Cement Co’s Ho Chi Minh City branch and Halong Cement JSC.

The country is expected to see a supply excess in its domestic cement market until 2028.