Hanoi (VNS/VNA) - The domestic cement industry expects to bounceback in 2024 thanks to the Government's tireless efforts to speed up publicinvestment and implementation of key transport infrastructure projects, alongwith approving many industrial and urban infrastructure ones.

At the same time, cement producers are also trying to expand their markets,shifting to several outlets such as the US, Australia, North America, SouthAmerica and Africa, to reduce dependence on China and take full advantage ofthe industry which can provide up to 120 million tonnes of products per year.

However, the Vietnam Cement Association said some importers of Vietnamesecement and clinker continue to implement policies and technical trade barriersto protect their local cement sectors.

In particular, the Philippines, the largest importing country, would continueto impose temporary anti-dumping taxes on Vietnamese cement products.Meanwhile, strict markets such as Europe have implemented carbon emissionreduction mechanisms.

Thus, the association urged businesses to push trade promotion activities toaccess more export opportunities.

It added that several businesses have won export orders to the US, a selectivemarket with high standards. That is a positive signal for the industry thisyear.

Trade experts said that cement businesses needed to focus on technologicalinnovation, invest in in-depth renovation, efficient use of energy, and draw upsustainable development solutions to both reduce production costs and enhancecompetitiveness to meet increasingly high environmental protection standards inthe international market.

For their part, cement manufacturers petitioned authorities to have supportivepolicies for the development of the industry.

SSI Securities Corporation said in its latest report on Vietnam's cement sectoroutlook in 2024 that first quarter domestic cement consumption would be at thelowest level since Q3/2021 (COVID lockdown period) due to seasonal factors suchas the Lunar New Year holiday and weak demand.

However, from Q2, cement sales volume would likely see a minor recovery due toresumed construction activity. In addition, major public investments couldoffset weak demand during 2024.

Exports decreased in 2023

Statistics from the General Department of Customs showed that the countryexported over 2.53 million tonnes of cement and clinker in December for nearly 98million USD, up 0.9% in volume but down 3% in value compared to the previousmonth.

The latest addition brought its clinker and cement export totals up to 31.3million tonnes, with a turnover of over 1.32 billion USD, marking yearlydeclines of 1.2% in volume and 4.1% in value.

Last year, the Philippines remained the largest importer of Vietnamese cementand clinker, accounting for 27% of the country's export turnover. It wasfollowed by Bangladesh with 17% and Malaysia with 5.2%.

Manufacturers blamed the decrease in exports on the low imports from China(down 90% year-on-year) as its real estate market had not shown signs ofimprovement. Furthermore, Vietnam's cement and clinker exports also facedfierce competition from other rivals such as the Philippines and Bangladesh.

Producers said they also encountered challenges in the domestic market as localcement consumption saw a year-on-year decrease of 7% to nearly 90 milliontonnes.

Vicem Ha Tien JSC said its pre-tax profit reached 54.3 billion VND in Q4/2023,down 6% compared to the same period last year.

In 2023, the company's revenue witnessed a sharp 21% decline year-on-year toover 7 trillion VND. Its profit also dropped 32% to over 604 billion VND,congthuong.vn reported.

According to the online newspaper, this was the lowest profit level amongleading enterprises in the cement manufacturing industry for the past 10 years.

To help the cement industry overcome current difficulties, the Department ofBuilding Materials under the Ministry of Construction, suggested ministries,agencies and localities continue to speed up public investment projects andinfrastructure construction according to approved plans.

This would strengthen consumption markets for building materials, includingcement, it said.

Cement producers themselves should innovate technology, use energy effectively,and use waste as fuel to replace coal, reducing production costs to become morecompetitive, it said./.