Demand for cement and clinker is expected to rise marginally 4-5 percent to 101-103 million tonnes in 2020.(Photo: VNA)Hanoi (VNA) – Demand for cement and clinker is expected to risemarginally 4-5 percent to 101-103 million tonnes in 2020, according to theMinistry of Construction.
This includes domestic consumption of 69-70 million tonnes, and exports of32-34 million tonnes.
Chairman of the Vietnam Cement Association Nguyen Quang Cung said that cementdemand expanded at higher pace as compared to the gross domestic product (GDP)growth in previous years.
However, the trend has been reverse in recent times due to a stagnant realestate market as well as slow progress of many infrastructure developmentprojects, he stated.
Cung stated that cement producers will have to face major challenges in 2020,with rising input costs, environmental and technological issues, and increasingwage.
Meanwhile, the Ministry of Construction said that Vietnamese cement would facefierce competition as China and Thailand increase exports. Therefore, domesticfirms should study market trends to adjust their production plans, stabilisecement price, and map out long-term business strategies.
The ministry has asked the Ministry of Industry and Trade to direct the VietnamNational Coal-Mineral Industries Holding Corporation Limited (Vinacomin) toprovide sufficient coal, and the Vietnam Electricity to ensure adequate powerfor cement production activities.
Experts said it is necessary for local firms to renew technologies in order toimprove product quality while reducing carbon footprint of the sector.
Currently, many large enterprises are moving to green production by applyingtechnological achievements of the Fourth Industrial Revolution, and savingnatural resources./.
VNA
