Vietnam's cement production capacity ranks 5th in the world

DNHN - The output capacity of the cement industry has increased from about 4.4 million tons in the early years of renovation to 107 million tons in 2021, putting Vietnam among the top 5 countries in the world in terms of cement production capacity (after China, India, USA, Russia).

Information at the Scientific Conference "The development of Vietnam's cement industry in the cause of industrialization and modernization of the country" took place on August 18, in the last 3 years, cement and clinker exports of Vietnam reaches over 30 million tons/year. Particularly in 2021, the export of cement and clinker products is about 42-45 million tons, up 19% compared to 2020; export value is estimated at 2.1 billion USD, the highest export figure ever.

The output capacity of the cement industry has increased from about 4.4 million tons in the early years of renovation to 107 million tons in 2021, putting Vietnam among the top 5 countries in the world in terms of cement production capacity (after China, India, USA, Russia).

Dr Nguyen Quang Cung - Chairman of the Vietnam Cement Association said that: The cement industry has faced three major challenges in terms of raw materials, the balance of supply and demand and environmental challenges. Currently, factories have a capacity exceeding design capacity, so demand for limestone and clay increases, but the Ministry of Natural Resources and Environment does not accept this. The procedures related to limestone mining are very difficult and need to be resolved soon. Need to exploit negative but difficult procedure. In addition to State procedures, there are environmental issues. We give garbage but it is very difficult to get garbage.

The first challenge is fuel. Currently, the price of imported coal is 210-220 USD, coal accounted for 50-60%, coal price increased many lines stopped and there was a shortage of cement; Coal prices increase, construction contractors complain. The solution to reduce the amount of clinker in cement, use more waste instead.

The second challenge is the imbalance of supply and demand. The total design capacity is 107 million tons, but technology application capacity is up to 123 million tons; currently investing 29 million tons, bringing the total capacity to nearly 150 million tons; while consuming 57 - 60 million tons, exports decreased. Supply and demand imbalance but if cement planning is removed, only investment projects are considered and approved; The Ministry of Construction no longer has a role. This, should be reviewed, without cement planning will be "dangerous", and the market will continue to be severely unbalanced.

The third challenge, according to Mr Cung, is the environment. Investment in the environment of the cement industry brings economic efficiency to businesses, but there are difficulties in procedures. Reducing clinker in cement will reduce emissions best.

P.V