Illustrative image (Source: VNA)Hanoi (VNA) – Productionand sales of cement and clinkers of Vietnam have risen in recent years. But tomaintain the growth, experts suggested that the industry should makecomprehensive reforms, apply advanced technology to improve production and optimisethe efficiency of natural resources.
In 2018, cement exports hit arecord of more than 30 million tonnes, along with about 64 million tonnes soldat home, raising the total supply of the industry to about 95 million tones.
Le Thanh Long, Director of VicemHoang Thach Cement Company Limited, the surge in cement exports was due to arise in demand in foreign markets like China and the Philippines.
Meanwhile, the price of cementand clinker in the world market also rose from 31 USD to 41 USD per tonne inlate 2018, encouraging firms to increase their exports.
Last year, the Vietnam CementIndustry Corporation (VICEM) operated at 95 percent of its capacity, with anoutput of 29.2 million tonnes, up 10 percent year on year.
VICEM exported 18 percent of itstotal production, with 70 percent cement, enjoying a 10 percent rise in totalrevenue to 37 trillion VND and an 11 percent increase in profit at 3 trillionVND.
The promotion of cement exportshas helped ease domestic sales pressure.
Nguyen Quang Cung, Chairman ofthe Vietnam Cement Association, said that currently, the cement industry’ssupply is no longer overwhelming. The increase in domestic sales and exportshas helped balance the market, he said.
However, Cung said the industrywill face risks if it sees export as a major future plan as many importersapply defence measures, causing difficulties for Vietnamese firms.
Experts said cement productionshould be kept at 14-15 million tonnes per year. Meanwhile, in 2019, theindustry plans to export 20-25 million tonnes of cement and clinker.
However, cement is anenergy-costing industry which uses resources that are not renewable. Last year,the sector had to import coal for its production due to a shortage of domesticsupply. In the year, coal prices increased twice, while the price of Vietnamesecement in the global market remained low to maintain competitiveness. Thesituation requires the sector to renovate its technology to cut costs.
VICEM General Director Bui HongMinh said the firm is taking steps to apply modern technology, save naturalresources and protect the environment.
The Ministry of Construction hasbuilt plans to increase the use of trash from thermal power plant as well aschemical and fertiliser factories as materials for construction.
Domestic firms’ efforts to modernisetheir production chain are expected to enhance the efficiency of the industryand help it grow sustainably.-VNA
VNA
