Vietnam Still Unsure of turning Cement Production into Major Industry
Published By : 06 May 2015 | Published By : QYRESEARCH
Nguyen Tran Nam, deputy minister of the Ministry of Construction in Vietnam, reported that last year the country exported 21 million tons of cement which resulted in a turnover of approximately US$1 billion. This kind of achievement is unheard of in a country like Vietnam.
Tran Tuan Anh, deputy minister of industry and trade affirmed that the exports of cement have been rapidly on the rise. This has turned Vietnam into the largest exporter of cement in South East Asia.
The ministry of construction’s deputy minister has proposed that in the midst of this kind of achievement, the nation to focus on developing cement into a major item of export.
Nguyen Tran Nam said that the country has 12 billion tons of limestone and these reserves are large enough to produce cement for hundreds of years.
The deputy minister also urged to increase the manufacture and consumption of cement in order to make the most of the large cement reserves.
However, even though government officials are rather optimistic about the future success of Vietnam’s cement industry, experts are not convinced that increasing the production and consumption of cement is the best idea.
While applauding the achievement of the cement industry for exporting 21 million tons of cement last year, an analyst has noted that while this achievement may spell good news for cement manufacturers across the country, it does not necessarily mean good news for the economy of Vietnam.
Another analyst stated that there were numerous latent risks in cement exports since the export markets are highly unstable. Moreover, the export of cement does not bring in a lot of money. Cement is both bulky and heavy and relatively unvalued. For manufacturers, the high shipping and handling costs are a huge hassle.