Vietnam's Cement Industry Poised for Recovery in 2024

The domestic cement industry in Vietnam is expected to rebound in 2024, driven by accelerated public investment and the approval of key transport, industrial, and urban infrastructure projects.

Vietnam's Cement Industry Poised for Recovery in 2024
Photo by Tron Le / Unsplash

The domestic cement industry in Vietnam is anticipated to experience a resurgence in 2024, propelled by the government's vigorous efforts to expedite public investment and the implementation of crucial transport, industrial, and urban infrastructure projects.

Additionally, cement producers are seeking to broaden their market reach by shifting focus to various destinations, including the US, Australia, North America, South America, and Africa, in a bid to decrease dependency on China and fully leverage an industry capable of yielding up to 120 million tonnes of products per year1.

However, the Vietnam Cement Association has highlighted that certain importers of Vietnamese cement and clinker are still enforcing policies and technical trade barriers to safeguard their local cement sectors. For instance, the Philippines, a major importing country, is expected to continue imposing temporary anti-dumping taxes on Vietnamese cement products.

Moreover, stringent markets like Europe have implemented mechanisms to reduce carbon emissions. Consequently, the association has urged businesses to intensify their trade promotion activities to access more export opportunities.

Despite these challenges, several businesses have secured export orders to the US, signaling a positive outlook for the industry in 20241.According to SSI Securities Corporation, the first quarter of 2024 is projected to witness the lowest domestic cement consumption since the third quarter of 2021, primarily due to seasonal factors such as the Lunar New Year holiday and subdued demand.

However, a minor recovery in cement sales volume is expected from the second quarter onwards, driven by resumed construction activity.

Furthermore, substantial public investments are anticipated to offset weak demand throughout 2024. Notably, cement exports saw a decline in 2023, with reduced imports from China being cited as a primary factor contributing to this downturn.

Source: Vietnam News