Cement industry has overcome the most difficult period

DNVN - According to the latest report from FiinGroup, Vietnam's cement industry has officially overcome the most difficult period and is on track for a strong recovery in 2024 and the first months of 2025. The main driving force comes from the warming of the domestic market, public investment and expectations of support policies from the Government.

Domestic market leads the recovery

FiinGroup’s Vietnam Cement Market Report 2025 provides a comprehensive picture of the industry after a challenging period. The report points out many positive signals, showing that the cement industry is entering a new growth cycle.

Data from the report shows that total cement and clinker consumption in 2024 increased by 9.8% over the same period, reaching 94.4 million tons. Notably, the domestic market was the main growth driver with consumption of about 66.5 million tons, while the export channel, reaching 27.8 million tons, has not really improved.

This recovery momentum continued in the first five months of 2025, thanks to the warming of the real estate market and efforts to diversify into emerging export markets.

The cement industry is forecast to recover more clearly in the second half of 2025.

This recovery has helped improve plant performance. Two cement plants inaugurated in 2024 have increased the industry’s total clinker and cement capacity by 7.4 million tonnes and 4.6 million tonnes, respectively. The industry’s total capacity utilization is estimated to increase from 58% in 2023 to 64% in 2024.

Notably, private enterprises continue to dominate the market. Private enterprises account for about 55% of the domestic cement consumption market share. Some large enterprises include Long Son, Vissai, Xuan Thanh, Cong Thanh, Thanh Thang...

Cement companies' profits are expected to gradually improve in 2024, thanks to improved capacity utilization, diversification of export markets, and recovery in the domestic cement consumption market.

Demand forecast to peak in 2031

According to Dr. Luong Duc Long - Vice President and General Secretary of the Vietnam Cement Association (VNCA), the recovery momentum will be more evident in the second half of 2025, especially when public investment is being strongly promoted by the Government , especially transport infrastructure projects.

In particular, Mr. Long commented that cement demand in Vietnam has not yet peaked and is forecast to peak around 2031. The production and consumption of cement products still have room for growth.

The Ministry of Construction 's forecast also shows that cement consumption demand in 2025 will increase by about 2-3% compared to 2024, reaching 95-100 million tons.

Mr. Luong Duc Long analyzed that the cement industry is operating according to market rules. Factories that invested later with modern, energy-saving technology have a greater competitive advantage. This is also the time when the market 'filters' out old, outdated production lines, bringing opportunities to promote the development of a more modern, advanced cement industry.

To support the industry, the Vietnam Cement Association has proposed that the Government remove export tax on clinker. Meanwhile, the Ministry of Construction has proposed reducing export tax for cement enterprises and the Prime Minister has assigned the Ministry of Finance to consider it. If approved, this policy is expected to create a big boost for the export channel in the coming time.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/nganh-xi-mang-da-vuot-qua-giai-doan-kho-khan-nhat/20250728095553680