Vietnam's cement industry faces a tough year as supply continues to outstrip demand, according to insiders. Nguyen Thanh Tung, deputy general director of Vietnam National Cement Corp (VICEM), projected domestic cement supply at 124.75Mt for 2025, while demand is expected to reach just 63.5Mt.
High raw material and fuel costs are also weighing on the sector, driving fierce price competition among manufacturers to retain market share. Meanwhile, export markets remain challenging, with Taiwan (China) investigating anti-dumping practices on Vietnamese cement and the Philippines considering additional self-imposed taxes.
Intense regional competition from Indonesia and Thailand, along with strict environmental regulations in Europe, has further hindered export opportunities. Tung noted that meeting Vietnam’s state emissions requirements will require significant investment in new technologies, leading to increased costs for producers.
VICEM aims to sell 17.87Mt of clinker domestically this year, an 8.3 per cent rise over 2024, and has set a revenue target of VND29.41trn (US$1.16bn).
Nguyen Quang Cung, an industry expert, has called on the government to introduce measures to boost domestic consumption, including promoting cement reinforcement technology for road construction. The Vietnam Cement Association has also petitioned the government to abolish the export tax on clinker, arguing it should be classified as a processed product rather than a raw material.
