Vietnam cement industry records growth in 2017

Local cement consumption rose 3% to 62 million tpy, while exports jumped 20% to 18 million t – more than 20% of the total shipped.

Production meanwhile reached 83 – 85 million tpy, a rise of 4 – 6% on 2016. Vietnam has installed capacity of around 100 million tpy spread across 82 cement production lines.

Continued robust growth in the construction sector seems likely to support additional cement consumption in coming years. According to BMI Researc, the Vietnamese construction sector to grow by 9.6% year on year in 2017 and by a similar amount this year. The industry will then continue to grow robustly, averaging 7.2% in the 2017 – 2026 period.

“Growth will be led by ongoing investments in infrastructure development and real-estate construction from both public and private sources,” BMI Research said.

Despite the positive headline figures, the industry will lag behind its full potential, BMI Industry continued, as financial and logistical challenges will prevent planned infrastructure projects being implemented on schedule.

Large projects are often delayed for “years on end” the research firm continued, as the weak financial health of Vietnam’s central and state governments, difficulties acquiring and clearing land, and budget overruns drag out the time taken to implement the planned project pipeline.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/11012018/vietnam-cement-industry-records-growth-in-2017/