3:26:33 PM | 7/8/2005
The Vietnam Cement Corp. (VNCC) has predicted that the shortfall of cement would continue in Vietnam this year due to booming demand.
The domestic cement demand is estimated at 29.1 million tons while production volume will be just 22.6 million tons this year, said the country’s largest cement producer.
The annual demand growth has been 15 per cent and supply growth 10 per cent in the last two years, aggravating the deficit, it said.
The Ministry of Construction said there were no cement imports so far this year.
To cope with this shortage, VNCC, which holds a 50 per cent share of local market, will invest US$1.4 billion this year to expand eight of its factories to increase output. These include Hoang Thach, Bim Son, Binh Phuoc, But Son, Ha Tien, Cam Pha, Thang Long and Ha Long cement plants.
It also hopes to open the Hai Phong and Song Gianh cement plants by the end of this year.
In another effort, the Ministry of Finance last month cut import tariff on clinker - a major raw material for white cement - from 25 per cent to 10 per cent, to ensure prices remain stable during the construction season.
Vietnam will import six million tons of clinker this year to ensure the plan of producing 30 million tons of cement, according to Nguyen Van Thien, chairman of the Vietnam Cement Association.
The country imported 4.2 million tons of clinker last year and produced 16.4 million tons domestically.
VNS, Labour
Vietnamese
