FiinGroup’s expert: Anticipated Positive Momentum for Vietnam Cement Market in 2024
Mr. Hai Khieu (Director of Market Research & Consulting Services, FiinGroup) has an article on the prospects of Vietnam's cement industry, published in Issue no. 4 of Cement and its application magazine. This is one of the leading magazines specializing in the cement industry aged over 110 years, listed by the Higher Attestation Commission (VAK) - a committee under the USSR Council of Ministers.
Mr. Hai Khieu (Director of Market Research & Consulting Services, FiinGroup) has an article on the prospects of Vietnam's cement industry, published in Issue no. 4 of Cement and its application magazine. This is one of the leading magazines specializing in the cement industry aged over 110 years, listed by the Higher Attestation Commission (VAK) - a committee under the USSR Council of Ministers.
Analyzing the current cement industry, Mr. Hai shared that the consumption for clinker and cement decreased both domestically and internationally, mainly due to the impact of the domestic gloomy economy resulted by the challenging real estate market, as well as the weaker importing demands from major traditional markets. Meanwhile, private investment continued aggressively in new capacity and capacity expansion projects. It is expected that in the next 4 years, there will be more and more waves of investment and the total capacity could reach 142.6Mt per year in 2026F.
The weak demand together with aggressive investment in new capacity led to a recorded low average utilization rate, factories operating at low productivity and even closed their kilns to stop their loss, and the pressure of increasing production costs. Therefore, the average profit margins decrease while competition increases, causing head winds for Vietnamese cement manufacturers.
Regarding the outlook, Vietnam's cement industry declined in 2022 compared to the previous period and is forecasted to remain weak in 2023. However, there may be some signs of recovery in 2024. The oversupply situation is expected to continue in 2030 and the cement market may witness a consolidation trend.
The detailed article in English translation is available HERE.
Find more about the Cement and its application Issue no. 4 HERE
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