The dark "color" of cement enterprises
According to the Ministry of Construction, the national cement supply in 2024 will reach about 122 million tons, while domestic consumption demand will only reach about 60 million tons, exports will decrease compared to the previous year, leading to excess supply and fierce competition, and lower selling prices... The Ministry of Construction calculates that the industry's cement consumption demand in 2025 will be about 95-100 million tons, an increase of 2-3% compared to 2024. Of which, domestic consumption will be 60-65 million tons, and exports will be 30-35 million tons.
Thus, the biggest problem of the cement industry at the moment is the great imbalance between demand and supply. There is concern about excess cement production capacity, while supply has exceeded demand by tens of millions of tons in the past year. According to the assessment of cement production enterprises in Tuyen Quang province, the difficult consumption is also due to the complicated fluctuations of the world economy, especially the Russia-Ukraine conflict and the real estate crisis in China, which have created great pressure on the Vietnamese cement industry.
Tan Quang Cement Joint Stock Company inspects product quality.
In addition to the above factors, the high prices of input materials such as electricity, coal, and production materials remain high, causing production costs to increase sharply. The real estate market is sluggish, construction projects from public investment sources are slow to disburse, directly affecting domestic cement consumption demand. The cement export market has decreased sharply, along with the increase in clinker export tax rate from 5% to 10%, creating great pressure on selling prices and consumption output.
According to Tan Quang Cement Joint Stock Company, in previous years, the company supplied 20,000 - 30,000 tons of Clinker per year to export units. However, from 2021 to now, the company has not been able to sell any to export units. The difficult export market has also led to difficulties in the domestic consumption market. In 2024, cement consumption output reached 906,000 tons, down about 20,000 tons compared to 2023. In 2025, the cement market is expected to remain difficult, so the company strives to maintain the consumption output equal to that of 2024.
Businesses strive to overcome difficulties
To maintain production and stabilize the market, businesses are forced to seek adaptive solutions, from cost optimization, market diversification to technological innovation to enhance competitiveness.
Mr. Nguyen Manh Danh, Director of Tuyen Quang Cement Joint Stock Company, shared: The difficult export market will affect the domestic consumption market. At this time, businesses only have the option of saving costs to reduce product prices as well as finding potential customers locally and in neighboring provinces. This is also the solution that the company is implementing. In addition, the company has another difficulty: the mining license has not been approved by the Ministry, 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 put into production to supply to close customers and potential customers to maintain the market.
Director of Tan Quang Cement Joint Stock Company - VVMI Le Danh Thang said that in order to save costs, reduce product prices to increase competitiveness in the market, the Company has applied new generation cement production technology with a continuous, closed production line from raw material exploitation to cement products using rotary kiln and drying methods. The equipment line has a high level of automation, applying information technology to improve quality, ensuring fuel economy and environmental protection indicators.
Every year, the Company launches a movement to promote technical innovation initiatives to improve productivity and product quality. Many initiatives and solutions have been implemented, bringing practical results to production and business activities. In 2023, the Company had 21 technical innovation solutions with a total benefit value of more than 582 million VND; in 2024, the Company had 28 technical innovation solutions with a total benefit value of 3.1 billion VND.
Along with that, Tan Quang Cement has implemented a series of measures to improve technology and increase production efficiency. The company has completed the repair of kilns, increased equipment productivity, helping to ensure that clinker power consumption always meets the standard. In addition, the company has improved the cement production process by increasing the ratio of additives in cement much higher than the original plan. This not only helps optimize production costs but also ensures stable product quality, meeting market consumption needs.
Mr. Pham Quang Hiep, Director of Hiep Phu Company Limited (Tuyen Quang City) said: The company regularly carries out large construction projects, so it has to import from 30,000 to 40,000 tons of cement per year. The company always trusts Tan Quang cement thanks to the stable and superior quality that the product brings. In addition, with Tan Quang cement produced right in the province, the company also saves significantly on transportation costs, contributing to optimizing business efficiency.
To help cement manufacturers overcome difficulties, the Vietnam Cement Association recommends that the Prime Minister and ministries and sectors find solutions to increase domestic cement consumption. At the same time, it recommends amending Decree 26/2023/ND-CP on applying a 0% export tax rate on cement clinker.
In 2025, businesses expect to promote public investment projects in infrastructure, especially transportation, housing, highway projects, airports, etc. In addition, the trend of building green buildings and developing renewable energy will be factors supporting cement consumption for growth.
Source: https://baotuyenquang.com.vn/doanh-nghiep-xi-mang-no-luc-vuot-kho-206953.html
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