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News Vietnam

Displaying items by tag: Vietnam

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Thach My cement plant starts operation in Vietnam

26 March 2014

Vietnam: The Thach My cement plant in Quang Nam province has started operation after a period of delay, according to a statement by Xuan Thanh Investment and Development JSC. The plant had an investment of US$190m with a designed cement production capacity of 1.7Mt/yr in its first phase. It covers an area of 57.36 hectares.

The plant was identified as a key project in the province when construction started in July of 2010. Construction was later delayed due to a shortage of building materials. The plant will create jobs for 1000 labourers, with 800 of these from the local area.

Published in Global Cement News
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Prime minister of Vietnam approves proposal to double capacity of cement plant

14 March 2014

Vietnam: Prime minister Nguyen Tan Dung has approved a proposal from the Ministry of Construction to expand the production capacity of Xuan Thanh cement plant in the northern province of Ha Nam to 4.5Mt/yr from the current 2.3Mt/yr.

The prime minister asked the ministry to review the planning of the cement industry, to remove low capacity cement projects from planning and to report to the government in June 2014. The government leader earlier added Xuan Thanh cement plant to the list of projects slated for operation before 2015.

Published in Global Cement News
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Cement and the Association of Southeast Asian Nations Economic Community

25 February 2014

There has been an interesting knock-on effect from further economic integration of the Association of Southeast Asian Nations (ASEAN) this week. Holcim Philippines may delay the construction of a 2.5Mt/yr cement plant in Bulacan province due to a drop in import tariffs in 2015. Vietnam or Indonesia were named as possible sources of clinker due to their excess capacity.

The ASEAN group comprises 10 countries including Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Laos, Myanmar and Cambodia. Their respective cement production capacities range from 0.3Mt/yr at a clinker grinding plant in Singapore to Indonesia's integrated cement production capacity of 45Mt/yr. In total the ASEAN countries have a production capacity of around 220Mt/yr for a population of about 600m with national gross domestic products (GDP) per capita ranging from US$900 (Laos) to US$52,000 (Singapore).

One scenario for cement producers in the ASEAN countries is that they might be swamped by exports from places like Vietnam. That country had a production capacity of 73Mt/yr in 2013 with cement sales predicted to rise to 63Mt in 2014. Assuming the government released figures are correct, that leaves at least a 10Mt of cement production-sales gap that could torpedo a neighbouring country's cement industry in the free trade area.

Indonesia, the other potential source of clinker that Holcim Philippines mentioned, has seen construction growth slow and production capacity grow. Holcim reported in its nine-month report in November 2013 that, while national cement sales had risen by 5.3% to 41.6Mt, supply capacity had risen by 9% to 59Mt/yr. Assuming equal sales distribution throughout this suggests a capacity gap of 4Mt.

Some politicians in the region have complained that impending free trade area will create winners and losers. At a recent ASEAN meeting in Yangon, Myanmar a Myanmar planning minister raised the issue of a development gap within the ASEAN region calling for renegotiation for countries like Myanmar, Cambodia and Laos.

Meanwhile both the cement industries in Vietnam and Indonesia have clearly anticipated the implications of the ASEAN Economic Community. The Vietnam National Cement Association expects to remain competitive within the ASEAN region and against Chinese imports after 2015. In Indonesia State Enterprises Minister Dahlan Iskan stated this week that the cement industry was ready for the ASEAN Economic Community thanks to the government's strategy to consolidate its major cement producers within one company, Semen Indonesia. Consistent cement industry growth in South East Asia may be about to change.

Published in Analysis
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Vietnam central province to revoke license of US$47m cement plant

18 February 2014

Vietnam: Authorities in Vietnam's central province of Quang Tri have decided to withdraw the investment license of a US$47m cement plant due to its sluggish implementation without legitimate reasons.

The plant, named Roli-Quang Tri, is located in Cam Tuyen commune, Cam Lo district and is the largest project in the province. Construction of the plant, which has a planned cement production capacity of 1.2Mt/yr, commenced in June 2009. Construction was subsequently delayed as the company is unable to continue the project, said Nguyen Duc Cuong, chairman of People's Committee of Quang Tri province.

Prime minister Nguyen Tan Dung earlier approved a proposal by the Vietnam Building Material Association to cancel nine cement projects with a total capacity of 2500t/day in order to keep in line with market demand. The prime minister also agreed to extend the deadline for the construction of seven other projects, including He Duong II, My Duc, Thanh Son, Tan Thang, Do Luong, Tan Phu Xuan and Nam Dong, until after 2015.

Currently, local cement makers have faced many difficulties due to having a huge inventory and low domestic demand, caused by the frozen real estate market. In addition, high production costs, high lending interest rates and rising input costs have also put heavy burden on local cement producers.

Vietnam's cement sales are predicted to rise by 1.5% to 3% year-on-year to between 62Mt and 63Mt in 2014, including 48.5Mt to 49Mt of domestic sales and 13.5Mt to 14Mt of exports.

Published in Global Cement News
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Thang Long Cement exports 30,000t of cement to Peru

11 December 2013

Vietnam: Thang Long Cement has exported 30,000t of cement cargo in bulk packed with Jumbo bags to Peru. This is the first and largest shipment of cement the Semen Indonesia subsidiary has exported to Peru in 2013. Since May 2013 Thang Long Cement has exported over 750,000t of products.

Published in Global Cement News
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Vicem sold 1.77Mt of cement and clinker in October 2013

11 November 2013

Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) has sold 1.77Mt of cement and clinker in October 2013, a year-on-year increase of 5%.

1.47Mt of cement and clinker was sold in the domestic market, a year-on-year reduction of 8.3%, while 0.31Mt was exported, a 243.8% increase when compared with October 2012.

The Vietnamese company produced 1.34Mt of clinker and 1.32Mt of cement in October 2013, down by 5.9% and 7.1% respectively compared with October 2012.

During the first 10 months of 2013 Vicem's cement and clinker sales reached 17.7Mt, a 9.2% increase on the same period of 2012. 15.8Mt was sold in the domestic market and 1.8Mt was exported, representing increases of 4.8% and 74.2% compared with the same period in 2012. During the first 10 months of 2013, Vicem's cement output rose by 9.3% year-on-year to 12.39Mt.

Vicem projects that its cement and clinker sales will reach 1.91Mt in November 2013, and aims to produce 1.39Mt of clinker and 1.63Mt of cement in the same period.

Published in Global Cement News
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Viettel acquires 70% stake in Cam Pha Cement in US$127m deal

30 October 2013

Vietnam: Viettel Group, the leading telecom company in Vietnam operated by the Ministry of Defence, has signed an agreement with Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex), to buy a 70% stake in Cam Pha Cement. Viettel also purchased Cam Pha Cement's debts guaranteed by VCG in a deal with a total value of US$127m. Viettel currently holds a 21.3% stake in Vinaconex.

With the share sale, Vinaconex will cut its holding in the loss-making cement plant to 30% and avoid further losses from the unit. Vinaconex has paid US$114m worth of debts owed by Cam Pha Cement. Following the deal Cam Pha will sell its cement to military-run construction companies.

Cam Pha Cement made an accumulated loss of US$75m in 2012. The cement plant based in Quang Ninh Province has a production capacity of 2.3Mt/yr.

Published in Global Cement News
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Vietnam set to overproduce 25Mt cement in 2013

16 October 2013

Vietnam: The Vietnam Cement Association has said that Vietnam's cement production capacity will reach 70Mt/yr after three new cement plants start operation before the end of 2013. The three new projects include X18 cement project in Hoa Binh province, Phuc Quang cement project in Quang Binh province and Dong Lam cement project in Thua Thien, Hue province. Domestic consumption of cement is estimated to be approximately 45Mt/yr in 2013 giving the country an overcapacity of 25Mt/yr.

Published in Global Cement News
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Vietnam adds three more cement plants despite surplus

01 October 2013

Vietnam: The Vietnam Cement Association (VNCA) has said that three more cement plants will open later in 2013 – X18, Quang Phuc and Dong Lam - despite the country's current cement surplus.

According to reporting by the Tuoi Tre newspaper, the new plants will raise national cement production capacity to around 70Mt/yr. Domestic cement demand is estimated at up to 46Mt/yr in 2013. The opening of the new plants will lead to a surplus of up to 25Mt/yr.

Local cement producers in Vietnam face rising debts and high stock inventories due to inaccurate demand forecasts and massive investment. The country's cement sales are expected to rise by 4 - 5% year-on-year to up to 57Mt in 2013, including 49Mt of domestic sales and 8Mt of export.

Published in Global Cement News
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Deputy general of Hoang Mai Cement retires

14 August 2013

Vietnam: Hoang Mai Cement has announced that Dang Tang Cuong retired as deputy general director from 1 August 2013.

Published in People
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