Vietnam’s cement industry is not expected to see the construction of any new production lines this year, according to Nguyen Quang Cung, chairman of the Vietnam Cement Association (VNCA). Mr Cung noted that the industry is now facing oversupply, creating a challenging environment for cement firms to invest in new factories.
The chairman also stated that the Thanh Son project in Thanh Hoa is yet to finish following a decade of construction. However, as previously announced, two additional production lines will be put into operation this year.
Following the coronavirus pandemic, he also forecast that cement firms will record high inventories in 2020. This is because the country is not expected to sustain the export volumes of 34Mt seen in 2019, while domestic sales will not increase as the real estate sector is also being impacted by the effects of COVID-19.
