Exports were a main outlet for the ailing cement industry last year,
Nguyen Thanh Tung, director of Vietnam Cement Corporation's
administration office, said at a recent conference.
The industry faced many difficulties last year in part due to the stagnant real estate market.
This
year, about eight new cement factories will go into operation with a
combined capacity of 6.9 million tonnes, bringing the country's whole
capacity to 73 million tonnes.
According to the Vietnam Cement
Association, the total demand for cement this year will be about 60
million tonnes, of which, 53 million tonnes will be for local
consumption and the remainder for export.
Under the Ministry of Construction' rules, joint ventures will have to export 30-40 percent of their total output.
In
fact, China is the largest importer, accounting for half of the world
demand. India is the second importer. Cement demand in some Asia Pacific
nations are also rising - and Africa is also becoming a promising
market.
Industrial analysts said Vietnam should take advantage of
these needs, despite the low value and high cost of transportation.
Cement could also be difficult to store.
In addition, the
country's poor infrastructure is also limiting efforts to further
increase cement exports. Rising input costs related to fuel, power and
coal during 2011 also created significant challenges for the sector.
Higher
costs push prices up. For instance, clinker used in cement making may
hit to more than 40 USD per tonne compared to 36 USD previously. Exports
of cement to Africa and Latin America require vessels capable of
carrying more than 50,000 tonnes.
Nguyen Van Diep, also from
Vietnam Cement Association's administration office, said tight
co-operation is needed between the ministries and State bodies to map
out export strategies.
He said the Government should create
favourable conditions for enterprises to borrow capital, cut costs and
attract more foreign investors in a bid to raise competitiveness, he
added.
Analysts suggest there is a big export market in Africa
because its infrastructure is poor and demand for cement is rather high.
To tap into this market, firms had to promote products more
professionally./.
