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Vietnam struggles with over-capacity

As domestic output continues to outstrip local demand, Vietnam is facing a 26Mt cement glut in 2017, according to the Vietnam Cement Association (VNCA).

Production from domestic cement plants is expected to reach 86Mt while the market is forecast to off-take 60Mt.
Meanwhile, exporting the surplus is becoming increasingly more difficult as the imposition of five per cent export duty has prevented local cement firms from promoting exports of their clinker and cement.
The VNCA earlier warned that Vietnam will face a glut of between 25-36Mt of cement by 2020 as domestic production outweighs local demand.
Published under Cement News


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