Cement Makers Face Hard Times

The La Hien cement plant sits idle in the northern city of Thai Nguyen. — VNA/VNS Photo Ngo Lich

HA NOI (VNS)— Domestic cement consumption so far this year reached 42 million tonnes, declining 10 per cent over the same period last year, the Ministry of Construction said.

The Viet Nam National Coal and Mineral Industries Group (Vinacomin) had planned to sell 2.2 million tonnes of cement this year but had only sold about 1.85 million tonnes to date.

Vinacomin's Quan Trieu, Tan Quang and La Hien cement plants, which had a combined capacity of about 3 million tonnes, were able to sell about 80 per cent of their total capacity.

High inventories and losses during the year caused enterprises to hesitate over business plans for next year, with many waited for the real estate market to revive, the ministry said.

Viet Bac Mine Industry Corp general director Bui Tran Dong told Dau tu (Vietnam Investment Review) that prospects for next year didn't look better.

Hoang Manh Truong, chairman of Vissai, in the northern province of Ninh Binh, said the company expected to sell over 5 million tonnes of cement this year, including exports.

"Next year, sticking to export markets and major property projects, we predict our cement sales will increase only 5 per cent," he said.

"In 2013, if the Government doesn't put policies in place to solve difficulties in the property market, the cement industry will witness a series of firms going bankrupt," Dong said.

"It will be even harder for Vinacomin to avoid financial difficulties." — VNS

Cement makers face hard times

The La Hien cement plant sits idle in the northern city of Thai Nguyen. — VNA/VNS Photo Ngo Lich

HA NOI — Domestic cement consumption so far this year reached 42 million tonnes, declining 10 per cent over the same period last year, the Ministry of Construction said.

The Viet Nam National Coal and Mineral Industries Group (Vinacomin) had planned to sell 2.2 million tonnes of cement this year but had only sold about 1.85 million tonnes to date.

Vinacomin's Quan Trieu, Tan Quang and La Hien cement plants, which had a combined capacity of about 3 million tonnes, were able to sell about 80 per cent of their total capacity.

High inventories and losses during the year caused enterprises to hesitate over business plans for next year, with many waited for the real estate market to revive, the ministry said.

Viet Bac Mine Industry Corp general director Bui Tran Dong told Dau tu (Vietnam Investment Review) that prospects for next year didn't look better.

Hoang Manh Truong, chairman of Vissai, in the northern province of Ninh Binh, said the company expected to sell over 5 million tonnes of cement this year, including exports.

"Next year, sticking to export markets and major property projects, we predict our cement sales will increase only 5 per cent," he said.

"In 2013, if the Government doesn't put policies in place to solve difficulties in the property market, the cement industry will witness a series of firms going bankrupt," Dong said.

"It will be even harder for Vinacomin to avoid financial difficulties." — VNS