The growth rate of Vietnam’s GDP in 2020 was about 2.9%. Considering the spread of COVID-19 in 2020, the annual GDP growth rate of 2.9% is already a good figure in the world. Vietnam’s economy has been increasing rapidly for many years, but wages of the manufacturing are still at a low level, which were less than 50% in China and far below that of the developed countries in 2020.
According to CRI analysis, due to the effective control of the COVID-19 epidemic in Vietnam, Vietnam’s cement production will maintain growth in 2020.Vietnam cement and clinker production volume reached 100.1 million tons in 2020, increased 3.8% YOY.
According to CRI analysis, compared to China or other developed countries, low labor cost is one of advantage of Vietnam cement industry. Besides, Vietnam possesses rich ore resources, which are raw materials of cement. The production cost of cement is mainly influenced by coal price.
Construction of infrastructure and booming property industry contributed to increasing domestic consumption of cement in Vietnam in recent years. Several large infrastructure projects are also underway. However, urbanization rate of Vietnam is still very low, only less than 40% by the end of 2020, which means the consumption of cement is not currently at the peak.
Cement designed capacity in Vietnam is expected to surge in the next three to five years thanks to aggressive expansion of local manufacturers including Tan Thang, Vissai, and Xuan Thanh. In conclusion, Vietnam is expected to face with continuous supply surplus before reaching equilibrium. In other words, export volume of cement is estimated to keep rising in the future.
-The impact of COVID-19 on Vietnam’s cement industry
-Development Environment of Vietnam Cement Industry
-Analysis on Market Status of Vietnam Cement Industry
-Analysis on Import and Export of Cement in Vietnam
-Major Cement Manufacturers in Vietnam
-Prospect of Cement Industry in Vietnam 2021-2025