Association Seeking to Raise Cement Prices
The Vietnam Cement Association has proposed a roadmap for cement price hikes in a bid to compensate for the increasing prices of materials.
The association said it proposed to raise the price of cement by VND50,000 per ton for this year, a rate that was generally supported by industry insiders and relevant ministries.
Cement production costs rose by VND30,000 per ton last year and if the prices of coal and electricity rise by 20 per cent and 10 per cent as scheduled, production costs will increase by another VND20,000 per ton, it said.
According to Deputy Minister of Construction Tong Van Nga, rising commodity prices pushed up cement prices in the global market since 2004, while prices in Vietnam have been standing on the same level over the last 10 years.
Moreover, if the depreciation of the Vietnamese dong against the US dollar is taken into account, prices of cement on the domestic market have decreased by 30 per cent over the last several years, he said.
The Vietnam Cement Corporation, the country’s largest cement producer, said cement producers’ profits have been decreasing annually, and may see a sharp decline in 2006 as a result of scheduled increases in coal, power and petrol prices.
Vietnam, which is now home to around 70 cement plants and some 30 grinding stations, turns out a total of 32 million tons of cement each year to meet 80 per cent of local demand. It is projected to raise the output to 50 million tons by 2010.
VNS
Vietnamese
