A construction glass manufacturing plant in Binh Duong province. Cement, tile and construction glass industries in Vietnam are seeing a large surplus, and as a result future investment in these industries should be carefully considered. (Photo sggp.org.vn) HCM City (VNS/VNA) - Cement, tile and construction glass are seeingexcess supply over demand, according to the Ministry of Construction.
Thanks to high investment in the three industries, the combined total outputhas already nearly reached their output target for 2025.
In 2020 cement manufacturers in Vietnam produced over 104 million tonnes ofcement, but only 62 million tonnes were sold in the domestic market, and 38million tonnes were exported.
According to the Vietnam Cement Association, domestic demand is slowing down,leading to fierce competition between suppliers in the country.
Exports of cement and clinker in the first five months of the year rose by 50percent year-on-year. This is because the country had expanded its cementexports in developing countries, said Luong Duc Đức Long, vice president cumgeneral secretary of the association.
However, he said that export of cement to these markets was unsustainablebecause these countries were also focusing on developing their domestic cementindustries.
The construction glass industry is also seeing higher supply than demand, withan excess output of 80 million square metres in 2020. Several manufacturershave had to close down some of their production lines.
Meanwhile, tile manufacturers in Vietnam produced 560 million square metresworth of tiles in 2020, but only 465 million square metres of them were sold.
Domestic tiles also have to compete with imported tiles that are not certifiedor closely monitored for quality and pricing, according to the Vietnam BuildingCeramic Association.
Chinese tile products, which account for up to 25 percent of Vietnam’s market,are sold very cheaply.
According to construction material manufacturer CMC Joint Stock Company, whichrecorded a 14 percent drop in revenue in 2020, excess supply over demandcontributed to harsh competition last year, with businesses making large pricecuts just to get rid of their stock.
Nguyen Van Sinh, deputy minister of construction, said that proposed investmentprojects in these three industries should be reconsidered, and localitiesshould seek opinions from state authorities to avoid excessive investment andwaste of manpower.
He said that investment in cement production in large cities and areas in needof environmental protection should be limited./.
VNA
