Vietnamese Enterprises Continuously Export Cement to the US

The surge in cement export orders to the US showcases the increasing presence of new Vietnamese companies in this demanding market.

Vietnamese Enterprises Continuously Export Cement to the US
Photo by Tran Phu / Unsplash

From the beginning of 2024, Long Son Cement Company in Thanh Hoa province has been welcoming numerous foreign ships at Long Son Comprehensive Port Bai Ngoc to load cement for export to the US market. Notably, just a few days after the Lunar New Year holiday, on February 20, 2024, the company exported a batch of cement to the US. This is part of a growing trend where more Vietnamese cement companies, such as Nghi Son, Ha Tien, Thanh Thang, and Xuan Thanh, have successfully signed export contracts to the US.

The US, known for its stringent market standards, has seen an increasing number of Vietnamese cement enterprises managing to penetrate it. Last year, companies under Vicem, including Vicem Ha Tien Cement Joint Stock Company and Nghi Son Cement, exported their first batches to the US.

The continuous export of cement by Long Son and other companies to the US marks a significant step in the strategy to distribute Vietnamese cement globally, including to markets with high standards. However, the year 2024 continues to present fierce competition for Vietnamese cement and clinker exports due to the slow recovery of China's real estate market and China's increased exports to major markets for Vietnamese cement, such as the Philippines and Bangladesh. Additionally, the Philippines continues to apply protective policies (anti-dumping duties on cement imports from Vietnam), adding to the competition in the Middle East and Southeast Asia.

The cement industry faces a large supply-demand imbalance, with a capacity of about 120 million tons/year but domestic consumption in recent years hovering around 60 million tons. This situation pushes enterprises to maximize exports, even at prices just covering variable costs, to avoid inventory accumulation.

Despite the small volumes of most cement orders to the US, these exports are significant for manufacturers due to the excessive domestic supply. In 2021, Vietnam successfully exported nearly 46 million tons of cement and clinker, but 80% of this volume went to nearby markets like China, the Philippines, Bangladesh, Taiwan, and some Middle Eastern countries.

In 2023, Vietnam exported over 31.3 million tons of clinker and cement, earning more than $1.32 billion, a slight decrease in volume and value compared to 2022, marking the second year of significant export declines. The main export markets were the Philippines, Bangladesh, and Malaysia. Despite challenges, there's hope for growth in exports to Central and South American regions, benefiting from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with zero tariffs.

Source: Tin nhanh chứng khoán