The Ministry of Construction (MoC) and the Vietnam Cement Association are jointly taking measures to ensure sufficient supply and stabilize cement prices in the first half this year, state media reported.
Deputy Construction Minister Nguyen Tran Nam said the ministry has asked the Vietnam Cement Corporation and cement makers nationwide to further boost production and not to halt operation for repairing furnaces in April and May.
The ministry also requested cement makers not to stockpile cement and it does not allow distributors and agents to stockpile and raise retail prices.
The ministry asks to transport a proper volume of clinker to the south to feed this large consumption market that accounts for up to 40 per cent of Vietnam’s cement consumption.
The country’s demand for cement grew 14 per cent in the first quarter this year, compared with an average growth of 11 per cent-12 per cent in the previous years, because a number of large projects are under construction.
According to the Building Material Department, Vietnam will need around 40 million-41 million tons of cement this year. Cement producers will have to import some four million tons of clinker.
The department said based on the current production capacity and stockpiled cement volume, cement supply is still ensured.
In 2008, an additional 10 cement plants will be put into operation, including four within this month, which will be able to produce about five million tons.
Earlier, the ministry and the Vietnam Cement Association held a meeting with participation of 24 big cement enterprises, committing to jointly respond to the government’s instruction on stabilizing the cement market until the end of the first half.
Vietnamese cement makers have just proposed the government slash import taxes on clinker and cement to 0 per cent and 10 per cent, respectively, in a bid to remain cement prices until the end of June under the instruction of the prime minister. (Local sources)
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