Displaying items by tag: Vietnam

Vietnam: Cement production rose by 4% year-on-year to 36.9Mt in the first quarter of 2025, according to the General Statistics Office. In March 2025, output reached 14.4Mt, up by 1.5% year-on-year. In 2024, the country produced 184.2Mt, an increase of 3.5% year-on-year.

Vietnam: The government will allocate greenhouse gas emissions quotas to 150 facilities across the cement, thermal power and steel sectors, according to a draft decree discussed by the government. Under the proposed roadmap, quota allocation will be implemented in phases over the next five years.

These sectors account for 40% of national emissions, according to the Vietnam Investment Review, and are also subject to the EU’s carbon border adjustment mechanism. The draft decree proposes decentralised development of technical regulations and mutual recognition of carbon credit data with international partners. Quotas will be proposed annually by ministries and submitted to the prime minister for approval.

 Deputy prime minister Tran Hong Ha said “This is a technical decree with many variables. The Ministry of Natural Resources and Environment will provide a controlled framework and guiding principles using a ‘sandbox’ approach, allowing businesses to experiment while regulators monitor, evaluate and make adjustments.”

The Pacific Cement Corporation (PACEMCO) held a groundbreaking ceremony this week officially ‘reopening’ its cement plant in Surigao City. The revival of the plant has been supported by investments by San Miguel Corporation (SMC). Various dignitaries attended the event including John Paul Ang, the chief operating officer of SMC, the mayor of Surigao City mayor and the governor of Surigao del Norte.

The plant has been closed since 2014 due to financial problems. At the time, Global Cement reported that the cement plant stopped operations in May 2014 after the Surigao del Norte Electric Cooperative cut its power supply for unsettled debts worth at least US$0.5m. PACEMCO was originally set up in 1967 and the plant had a production capacity of 0.22Mt/yr via one production line in 2014.

Earlier in March 2025 the Department of Trade and Industry (DTI) was keen to highlight the efforts that Taiheiyo Cement Philippines (TCP) is making towards supporting the country's infrastructure capacity. Company executives met with the DTI and revealed plans including building a distribution terminal in Calaca, Batangas with the aim of targeting the Luzon market. This follows the construction of a new US$220m production line at TCP’s San Fernando plant in Cebu in July 2024.

Both announcements follow the implementation in late February 2025 of a provisional tariff on cement imports. The DTI started investigating imports in the autumn of 2024 and later decided to initiate a ‘preliminary safeguard measure’ following the discovery of a “causal link between the increased imports of the products under consideration and serious injury to the domestic industry.” The tariff takes the form of a cash bond of US$6.95/t or US$0.28/40kg bag of cement. It will be in place for 200 days, to mid-September 2025, while the Philippine Tariff Commission conducts a final investigation. The two main countries that will be affected are Vietnam and Japan. A large number of countries are exempt from the tariff including, notably, China and Indonesia. Both of these two countries were larger sources of imports to the Philippines during the five-year period the DTI is investigating. However, imports from these places have declined since 2021 and 2023 respectively.

Graph 1: Import of cement to the Philippines, 2019 - 2024. Source: Department of Trade and Industry.

A preliminary report by the DTI published in late February 2025 outlines the reasons for the provisional tariff. In summary it found that imports rose from 2019 and 2024 and the share of imports increased also pushing down the domestic share of sales. In the view of the report, the domestic cement sector experienced declining sales, production, capacity utilisation, profitability and employment for each year apart from 2021. One point to note is that the imports were split roughly 50:50 between local and foreign companies. Local company Philcement, for example, was the largest importer for cement to the Philippines from 2019 to 2024. In its statement to the DTI it said that it had invested in manufacturing the processing sites in the country. It argued that overprotection of the market discouraged competition and might not be aligned with the economic goals of the country.

Last time Global Cement Weekly covered the Philippines (GCW669) in July 2024 it looked likely that the government would take further action on imports. This has now happened on a temporary basis but it looks likely that it will become permanent. Recent investment announcements from local producers such as PACEMCO and TCP may be coincidental but they suggest a tentative confidence in the local sector.

Philippines: The Department of Trade and Industry has imposed a preliminary safeguard measure on cement imports, primarily targeting Vietnam, which supplied 94% of imported cement in 2024.

The measure follows a finding that rising imports between 2019 and 2024 harmed domestic producers. The tariff applies to 40kg bags and will be in place for 200 days while the Philippine Tariff Commission conducts a final investigation. Vietnamese cement exporters have been advised to ‘monitor developments.’

Vietnam: Deputy Prime Minister Tran Hong Ha has given in-principle approval for a port project at Long Son My Xuan in Ba Ria-Vung Tau Province. The US$102m plan includes a 2.3Mt/yr cement grinding plant, according to the Saigon Times Daily newspaper. A 270m-long berth for ships up to 30,000dwt and four 530m berths for vessels up to 7500dwt will also be added.

The People’s Committee of Ba Ria-Vung Tau Province has been assigned to allocate land to the investor in accordance with the approved land use planning, land use plan, and port development master plan, ensuring compliance with land regulations.

Vietnam: The Ministry of Construction has reported a cement surplus to the Prime Minister, blaming a supply-demand imbalance. The country has 92 cement production lines with a capacity of over 122Mt/yr, according to the Việt Nam News newspaper. However, cement and clinker consumption was 95Mt in 2024, with 65Mt used domestically and 30Mt exported.

Planning regulations governing cement plants were relaxed in 2017. Subsequently, local authorities approved 13 new units that added 35Mt/yr in capacity. The Ministry of Construction proposed a national building materials strategy capping total cement production at 125Mt/yr by 2025 and 150Mt/yr by 2030. The ministry has also urged provincial governments to limit new cement projects to prevent excessive supply. It has proposed tightening the planning laws on building new cement plants.

The Vietnam National Cement Association (VNCA) has highlighted weak market demand and production constraints as major challenges to the sector. It has lobbied the government to promote housing, infrastructure and road projects to grow the cement market.

Vietnam: Xuan Son Group held the launch ceremony for Xuan Son Cement at the Xuan Son cement plant in Hoa Binh province on 21 February 2025. The plant spans 40 hectares, with a US$196m investment and a production capacity of 3.5Mt/yr. The plant integrates Polysius grinding technology, Flender transmission systems, Haver & Boecker automated packaging technology and electrical equipment and motors from Pfeiffer, Vacuum and ABB. Heat consumption is below 680kCal/kg of clinker, and electricity consumption is under 71kW/t of cement, according to the company. The plant uses refuse-derived fuel in the kiln, as well as waste heat recovery to reduce its reliance on fossil fuels. It aims for zero NO_x and CO₂ emissions.

US: Cement shipments fell by 6% year-on-year to 103Mt in 2024 from 109Mt in 2023. Data from the United States Geological Survey (USGS) shows that domestic shipments of Portland and blended cement decreased by 6% to 82.9Mt from 88.2Mt. However, imports only dipped slightly to 19.8Mt. Particular declines in shipments were recorded in the north-east and Texas. Türkiye remained the biggest source of imports in 2024 (7.16Mt), followed by Canada (4.85Mt), Vietnam (4.17Mt), Greece (1.82Mt) and Mexico (1.32Mt). Clinker production dropped by 7% to 71.6Mt from 76.8Mt.

Vietnam: Cement production reached 22.7Mt in the first two months of 2025, up by 7% year-on-year, according to the General Statistics Office (GSO). In February 2025, the country produced 11.3Mt of cement, marking a 24% increase compared to the same month in 2024.

In 2024, Vietnam produced 184Mt of cement, reflecting a 4% rise year-on-year based on revised figures.

Vietnam: Cement and clinker exports fell by 37% year-on-year to 2Mt in January 2025, according to the General Statistics Office (GSO). Exports were worth US$76m, a fall of 36% year-on-year. The decline has continued a downward trend that began in early 2022, with trade barriers in key markets such as the Philippines and Taiwan restricting exports, according to local news reports. The 10% export tax on clinker, imposed in 2023, has also added to industry challenges. The Ministry of Construction submitted a report in January 2025 to the Prime Minister, warning of potential cement plant closures.