In 2021, Vietnam’s GDP increased by 2.58%, reached 3626.19 billion USD. Considering the spread of COVID-19 in 2020-2021, the annual GDP growth rate of 2.58% 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 2021.
Vietnam cement and clinker production volume reached 101.22 million tons in 2021, increased 1.1% 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 40.4% by the end of 2021, 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.
According to CRI analysis, Vietnam’s cement production will maintain growth from 2022 to 2031. The drivers of rising cement production volume in Vietnam include (1) the rising demand for cement in the domestic market with the development of Vietnam’s real estate industry and infrastructure (2) the export volume will also grow year by year due to the low-price level of cement in Vietnam.
- Overview of Vietnam’s Cement Industry
- Economic and Policy Environment of Vietnam’s Cement Industry
- What is the impact of COVID-19 on the Cement industry in Vietnam?
- Vietnam’s Cement Market Size, 2016-2021
- Import and Export Analysis of Cement in Vietnam
- Analysis of Vietnam’s Major Cement Plantation and Processing Enterprises
- Key Drivers and Market Opportunities in Vietnam’s Cement Industry
- What are the key drivers, challenges, and opportunities for Vietnam’s Cement Industry
- during 2022-2031?
- What is the expected revenue of Vietnam’s Cement market during 2022-2031?
- Which segment of Vietnam’s Cement market is expected to dominate the market in 2031?
- What are the major adverse factors facing the Cement industry in Vietnam?
- Forecast on Vietnam’s Cement Market, 2022-2031