Cement companies strive to overcome difficulties.

The "dark side" of the cement industry.

According to the Ministry of Construction , the national cement supply in 2024 reached approximately 122 million tons, while domestic consumption only reached about 60 million tons. Exports decreased compared to the previous year, leading to a surplus of supply, fierce competition, and lower prices. The Ministry of Construction estimates that the total cement consumption for the industry in 2025 will be around 95-100 million tons, an increase of 2-3% compared to 2024. Of this, domestic consumption will be 60-65 million tons, and exports 30-35 million tons.

Thus, the biggest problem facing the cement industry right now is the significant imbalance between supply and demand. There are concerns about excess cement production capacity, while supply has exceeded demand by tens of millions of tons over the past year. According to assessments by cement manufacturers in Tuyen Quang province, the difficulties in consumption are also due to the complex fluctuations of the global economy , especially the Russia-Ukraine conflict and the real estate crisis in China, which have created significant pressure on the Vietnamese cement industry.

Tan Quang Cement Joint Stock Company conducts product quality inspection.

In addition to the factors mentioned above, rising input costs such as electricity, coal, and other production materials have led to significantly increased production costs. The sluggish real estate market and slow disbursement of public investment funds for construction projects have directly impacted domestic cement consumption. The sharp decline in cement exports, coupled with the increase in clinker export tax from 5% to 10%, has created significant pressure on selling prices and sales volume.

According to Tan Quang Cement Joint Stock Company, in previous years, the company supplied 20,000-30,000 tons of clinker annually to export companies. However, since 2021, the company has not sold any clinker to export companies. The difficult export market has led to difficulties in the domestic market as well. In 2024, cement consumption reached 906,000 tons, a decrease of about 20,000 tons compared to 2023. In 2025, the cement market is expected to remain challenging, so the company aims to maintain consumption levels at the same level as 2024.

Businesses strive to overcome difficulties.

To maintain production and stabilize the market, businesses are forced to seek adaptive solutions, from optimizing costs and diversifying markets to innovating technology to enhance competitiveness.

Mr. Nguyen Manh Danh, Director of Tuyen Quang Cement Joint Stock Company, shared: "The difficult export market will affect the domestic market. At this time, businesses only have the option of saving costs to lower product prices and seeking potential customers locally and in neighboring provinces. This is also the solution that the company is implementing. In addition, the company faces another difficulty: it has not yet received approval from the Ministry for a mining license, so the company has to temporarily suspend part of its operations. Currently, the company is overcoming this by temporarily purchasing raw materials from other units to use in production to supply loyal and potential customers in order to maintain its market share."

According to Mr. Le Danh Thang, Director of Tan Quang Cement Joint Stock Company - VVMI, to save costs and reduce product prices in order to increase competitiveness in the market, the company has applied new generation cement production technology with a continuous, closed production line from raw material extraction to cement product using the rotary kiln and drying method. The equipment line has a high degree of automation and applies information technology to improve quality and ensure fuel efficiency and environmental protection.

Each year, the company launches a campaign to promote technical innovation and improvement to enhance productivity and product quality. Many initiatives and solutions have been implemented, bringing practical benefits to production and business activities. In 2023, the company had 21 technical improvement solutions with a total value of over 582 million VND in benefits; in 2024, the company had 28 technical improvement solutions with a total value of 3.1 billion VND in benefits.

Along with that, Tan Quang Cement has implemented a series of technological improvements and increased production efficiency. The company has completed repairs to the kiln, increasing equipment productivity and ensuring that electricity consumption for clinker production always meets the set targets. In addition, the company has improved the cement production process by significantly increasing the proportion of additives in the cement compared to the initial plan. This not only optimizes production costs but also ensures stable product quality, meeting market demand.

Mr. Pham Quang Hiep, Director of Hiep Phu Co., Ltd. (Tuyen Quang City), said: "Our company regularly undertakes large construction projects, so we have to import 30,000 to 40,000 tons of cement annually. We always trust and choose Tan Quang cement because of its stable and superior quality. In addition, with Tan Quang cement being produced right in the province, the company also saves significantly on transportation costs, contributing to optimizing business efficiency."

To alleviate difficulties for cement manufacturers, the Vietnam Cement Association has proposed that the Prime Minister and relevant ministries and agencies implement solutions to increase domestic cement consumption. Simultaneously, it has requested amendments to Decree 26/2023/ND-CP regarding the application of a 0% export tax rate on cement clinker.

In 2025, businesses expect a boost in public investment projects in infrastructure, especially transportation, housing, highways, and airports. Additionally, the trend towards green building and renewable energy development will support cement consumption growth.

Source: https://baotuyenquang.com.vn/doanh-nghiep-xi-mang-no-luc-vuot-kho-206953.html