Cement industry to concretise its future

From early May, Ho Chi Minh City-based Vicem Ha Tien 1 Cement, has supplied distributors an average of 8,000 tonnes of cement per day, up from 7,000 tonnes per day in April, according to a company source.

The demand for cement in Ho Chi Minh City during April-May jumped 40 per cent against the corresponding period of last year.  The growth, according to the firm, was beyond expectations of other cement companies.

In the year ending May, Vietnam saw approximately 24 million tonnes of cement sold domestically and overseas, equal to 41 per cent of the industry’s yearly plan. Of this, 19 million tonnes were sold domestically, up 9 per cent on-year, according to the Ministry of Construction’s  statistics.  Sales figures of most domestic cement companies over the past five months showed fair growth against one year ago.

Among eight member units under the state-run cement conglomerate Vicem, only Vicem Hoang Mai and Vicem But Son witnessed a single-digit growth (up 3 per cent on-year) while the remainder all enjoyed double-digit hike, including Vicem Hoang Thach up 20 per cent, Haiphong Cement up 17 per cent, Bim Son Cement up 29 per cent, Tam Diep Cement 12 per cent more and Hai Van Cement 40 per cent. 

“Vicem’s cement market share expanded over 4 per cent in the first five months of this year thanks to the upbeat results of our member units. Property-oriented demand stimulus packages were expected to help cement firms balance capital flows and cushion high inventory pressures,” said Vicem chairman Luong Quang Khai.

Resumed sales have also brought vitality to cement plants incurring halted production in a long time due to market and financial woes.

In early April 2013, a cement plant based in northern mountainous Lang Son province was renamed from Dong Banh Cement to Vissai Lang Son as it resumed operations under management of the new owner,  the private cement group Vissai Ninh Binh. It is able to supply  the domestic market with 75,000 tonnes of cement per month.

“The Vissai Group’s firm export market would ensure consuming the output for Vissai Lang Son, helping its workers to earn stable incomes,” said Nguyen Tien Dat, the plant’s director.