Cement businesses expect to "brighter" growth thanks to public investment and exports

VCN - The real estate market difficulties in 2023 have hit cement businesses severely, leading them to consecutive negative growth. Thanks to positive moves from promoting public investment and expanding export markets, cement businesses expect to be "brighter" in 2024
Customs sector widely disseminates law enforcement Customs sector widely disseminates law enforcement
A series of businesses with tax debt forced by Ho Chi Minh City Customs A series of businesses with tax debt forced by Ho Chi Minh City Customs
MoF requests not to overlap tasks among enforcement forces in implementing digital border gate in Lang Son MoF requests not to overlap tasks among enforcement forces in implementing digital border gate in Lang Son
Cement businesses set  high expectations for recovery in 2024.
Cement businesses set high expectations for recovery in 2024.

According to statistics from the Ministry of Construction, in the 11 months of 2023, the whole country produced more than 80 million tons of cement, of which 52 million tons were consumed domestically, 29 million tons were exported, a decrease of 12% in production volume and a decrease in 16% in consumption compared to the same period last year.

Mr. Luong Duc Long, General Secretary of the Vietnam Cement Association, said that from 2020 to 2023, cement businesses suffered many adverse impacts, such as the increase in clinker export tax and the impact of a decline in cement production. The frozen real estate market and real estate businesses "stalled and delayed progresses of many plans.

Therefore, the business results of large to medium-sized domestic cement enterprises recently have not been very positive. For example, the third quarter 2023 financial report of Bim Son Cement Joint Stock Company revealed its 5th consecutive quarterly loss of nearly 56 billion VND. Accumulated for the first 9 months of 2023, Bim Son Cement had a net loss of nearly 108 billion VND, while in the same period last year the profit was nearly 94 billion VND.

Similarly, VICEM But Son Cement Joint Stock Company recorded a net loss of nearly 32 billion VND in the third quarter, a cumulative 9-month loss of more than 64 billion VND, in contrast to a profit of more than 55 billion VND year on year. VICEM But Son Cement said that the main reason for the loss of business results was due to a sharp decrease in cement consumption, causing net revenue declines. Besides, rising interest costs also "erod" the profits of businesses.

Hoang Mai Cement Joint Stock Company also said that due to lower demand and large clinker inventories, the business had to proactively stop the kiln in July and reduce kiln productivity, causing clinker output in the third quarter to be shrank. In addition, the average price of domestic cement in the third quarter, the price of clinker as well as the selling price of exported cement in the third quarter all witnessed dip, hitting the company's profits sharply. Accumulated for 9 months, the business had an after-tax loss of nearly 26 billion VND while the same period last year had a profit of more than 15 billion VND.

In addition, most other cement enterprises also share the same losses ranging from a few billion VND to more than ten billion VND. A representative of the Vietnam Cement Association said that cement consumption in 2023 recorded a maximum of 90 million tons, of which domestic sales were about 57-60 million tons, exports were about 27-30 million tons, but it is difficult to escape negative growth due to many discouraging impacts.

Entering 2024, in particular, the cement industry is placing high expectations on efforts to promote public investment because from the last months of 2023 to early 2024, the Government has been drastically issuing many directions to promote public investment, implementing many key transport infrastructure projects, along with the approval of many industrial and urban infrastructure projects.

Regarding exports, businesses are also trying to expand their markets, shifting to markets such as the US, Australia, North America, South America and Africa to reduce dependence on China and promote its strengths with a total design capacity of up to 120 million tons/year.

However, according to the Vietnam Cement Association, some countries importing Vietnam's cement and clinker continue to implement protection policies for domestic cement production and technical trade barriers. In particular, the Philippines, the largest import market, impose temporary anti-dumping taxes on Vietnamese cement. Furthermore, fastidious markets such as Europe implement carbon emission reduction mechanisms. Therefore, market expansion is necessary even though output is not much, so businesses must further promote trade promotion activities. A positive sign is that a number of businesses have had export orders to the US - a market with high standards and fastidiousness.

​In addition, experts say that cement businesses need to innovate technology, invest in-depth renovation, efficient use of energy and sustainable development solutions to both reduce production costs and enhance competitiveness in order to meet increasingly high standards of environmental protection in the international market. In addition, businesses recommend that authorities continue to have supportive policies and policies consistent with the development of the industry.

Minh Chi/ Thu Phuong

Related News

Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.

Latest News

EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.

More News

Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Read More

Your care

Latest Most read
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - According to the Vietnam Trade Office in Canada, as of September 2024, Canada has initiated nineteen trade defense investigations on Vietnamese export goods, including twelfth anti-dumping (AD) cases, five anti-subsidy cases and two defense cases.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Mobile Version