Displaying items by tag: VNCA

Vietnam: Export prices for clinker and cement in Vietnam have dropped significantly in May 2024, impacting the construction industry and raising concerns among exporters. This decline is due to decreased international demand, intense competition, and evolving trade policies, according to the Vietnam News Brief Service. The Ministry of Construction noted that after a decade of growth, export volumes have fallen sharply since 2022, with exports dropping to 10.9Mt in 2023 from 15.2Mt the previous year. Only 5.4Mt is expected to be exported in the first half of 2024.

The Vietnam Cement Association (VNCA) has highlighted ongoing challenges, particularly influenced by the downturn in China’s real estate market and competitive pressures from Chinese cement surpluses. The VNCA has urged Vietnamese exporters to explore new markets, improve product quality and increase production efficiency. Additionally, the VNCA recommends that the government consider eliminating export taxes on clinker to mitigate these challenges.

Vietnam: The Vietnam Cement Association (VNCA) has requested the exemption of clinker from the current 10% export tax, arguing it does not qualify under the Value-Added Tax Law as a natural resource or unprocessed mineral. According to Viet Nam News, VNCA has formally appealed to the Ministry of Finance and the Ministry of Construction to review the tax, asserting that clinker, produced at temperatures around 1450 - 1500°C, should not be taxed as a mineral resource. The industry exported over 31.3Mt of clinker and cement in 2023, equivalent to US$1.32bn, representing a year-on-year decline of 1.2% in volume and 4.1% in value compared to 2022, marking the second consecutive year of export decline. The total production capacity of Vietnam's 61 cement plants is about 117Mt/yr, with domestic consumption reaching only 56.6Mt.

Vietnam: New cement lines will raise Vietnamese cement production capacity by 4% year-on-year in 2023 to over 120Mt/yr. Vietnam News Summary has reported that upcoming new capacity scheduled to commence operations during the year include a 4.5Mt/yr line at a Xuan Tanh Cement plant and a 2.5Mt/yr line at a Long Son Cement plant.

Vietnamese cement demand was 65Mt in 2022. Several producers suspended cement lines during the second half of that year due to high costs and unfavourable market conditions.

Vietnam: The Vietnam National Cement Association (VNCA) has spoken about the difficulties that would arise from a proposed power price rise by state-owned Electricity Vietnam (EVN). VNCA chair Nguyen Quang Cung said that cement producers foresee 'business havoc' ensuing from any further cost increase to their operations. The industry says that reduced demand has prevented them from raising cement prices amid already high costs. Coal price growth is a significant contributor, and now accounts for 60% of the industry's operating expenses.

Cung said "Many companies are suffering losses and have suspended the operations of many production lines." He continued "We understand that EVN is claiming force majeure because they face the same challenge relating to the input cost burden."

Vietnam: During the first ten months of 2022, Vietnam National Cement Association (VNCA) members exported 25.9Mt of cement and clinker, with a total value of US$1.16bn. Volumes dropped by 30% year-on-year from 37Mt, while the value of exports dropped by 20% from US$1.43bn.

In 2021 Vietnam exported 43.5Mt of cement and clinker, worth US$1.78bn, up by 13% year-on-year in volume and by 24% in value.

Vietnam: Vietnam National Cement Association (VNCA) members sold 77.5Mt of cement in the first nine months of 2021, up by 3.5% year-on-year. Vietnamese cement exports rose by 19% over the same period, to 31.9Mt. This corresponds to 41% of total sales. State-owned Vietnam Cement Industry Corporation (VICEM) exported 14.5Mt of cement, 45% of national cement exports. Viet Nam News has reported that the country ended the nine-month period with 3.6Mt of cement and clinker in inventory.

Vietnam: Cement producers in Vietnam are reported to be facing a ‘double whammy’ due to falling domestic demand from a slowdown in the domestic property and infrastructure sectors, as well as a marked decline in exports due to the ongoing Novel Coronavirus (COVID-19) epidemic.

However, Nguyen Quang Cung, chairman of the Vietnam Cement Association (VNCA) said that demand is expected to remain high throughout 2020 as a whole. The Ministry of Construction (MoC) currently stands by its autumn 2019 forecast that Vietnam will produce 103Mt of cement during 2020. It expects domestic consumption to be around 70Mt, with exports of 33Mt.

To help firms overcome the current difficulties, Cung proposed that the government, the State Bank of Vietnam and other parties offer support to manufacturers in the form of tax cuts and lower interest rates.

Global Cement is sceptical that Vietnam’s cement producers will meet the MoC’s 2020 forecast. In January and February 2020 the country’s domestic sales were 40% lower year-on-year compared to 2019, while exports fell by 49% year-on-year.

Vietnam: Vietnam sold 64.6Mt of cement in the first 10 months of 2017, a rise of 4% year-on-year compared to the same period of 2016, according to the Ministry of Construction. Of the sum, 49.3Mt was sold domestically, a 2% year-on-year rise, while 15.3Mt was exported, a rise of 2%.

In October 2017, local firms sold 6.2Mt of cement, including 4.7Mt of domestic sales, and 1.5Mt of exports. As of October 2017, Vietnam had 3.3Mt of cement and clinker inventory, mostly clinker.

At present, Vietnam’s cement output has reached 86Mt/yr, while domestic demand is estimated at only 60Mt. The country is thus predicted to face a surplus of 26Mt of cement overall in 2017, according to the Vietnam Cement Association (VNCA).

Vietnam: Vietnam's cement sales in 2012 reportedly fell by 3.5% to 54Mt due to low demand in the domestic market, according to the Vietnam Cement Association (VNCA). The country's cement sales in its domestic market fell by 7.71% year-on-year to 45.5Mt. Cement and clinker exports rose by 30% to 8.5Mt.

In 2012 local cement makers faced many difficulties such as large inventories and low domestic demand created by a static real estate market. High production costs, high lending interest rates and high input costs for materials such as fuel, power and coal all adversely affected local cement producers. Cement and clinker exports have also been disrupted due to some firms 'unfairly' cutting their export prices.

For 2013 the VNCA has predicted that local cement producers will continue to face difficulties. However the government has approved spending of US$480m on new rural constructions and will encourage the use of local cement for transportation infrastructure projects. Vietnam's domestic cement sales are predicted to rise by 5-8% year-on-year to 48-49Mt in 2013, equal to the total sales seen in 2011.

Deputy Minister of Construction Nguyen Tran Nam said that the local cement sector must focus on dealing with three main problems: export promotion, production cost reduction and enterprise restructure. He also called on local cement companies to cooperate on exports instead of undercutting each other.

Vietnam: Vietnam's industrial production grew by 6.8% in 2011, lower than that of 2010, according to data released by the Vietnam General Statistics Office (VGSO). Manufacturing industries, the inventory indices of which rose sharply in 2011, include cement, which was up by 64% year-on-year. 

Meanwhile, Vietnam is forecast to export 0.5Mt of cement and 5.5Mt of clinker in 2012, according to an official from the Vietnam National Cement Association (VNCA). The VNCA's Chief, Nguyen Van Diep, said that Africa would be the targeted market for most of the material.

Vietnam's cement output is forecast to rise to 73Mt in 2012 due to the additional operation of eight new cement plants that have a combined production capacity of 6.9Mt/yr. Meanwhile, the country’s cement consumption is predicted to be around 60Mt in 2012, accounting for 86% of the sector’s total production.

Diep maintained these targets despite cement sales in 2011 falling short of the 54.5 - 56Mt forecast. Cuts in public investment and frozen real estate projects have cut demand significantly in 2011, to around 49Mt.