From powering the country's record-breaking construction boom to becoming a global export powerhouse, Vietnam's cement industry is mixing an impressive story of growth, challenge, and transformation behind its nearly 100 million-ton annual production.
Key Takeaways
- In 2022, Vietnam's cement production reached 98.5 million tons, marking a 5.2% increase from 2021
- Vietnam's cement industry produced 72.6 million tons in the first half of 2023, up 6% year-on-year
- Annual cement production in Vietnam averaged 95 million tons between 2018-2022
- Cement production capacity utilization in Vietnam was 72% in 2022
- Total installed cement capacity in Vietnam stood at 136 million tons per year as of 2023
- VICEM holds 25% of Vietnam's total cement capacity at 34 million tons/year
- Cement consumption in Vietnam was 72 million tons in 2022, down 3% from 2021
- Per capita cement consumption in Vietnam reached 72 kg in 2022
- Domestic demand grew 4.5% to 75 million tons in H1 2023
- Vietnam exported 32.5 million tons of cement and clinker in 2022
- Cement exports value reached USD 1.2 billion in 2022
- Clinker exports from Vietnam were 22.1 million tons in 2022
- Vietnam Cement Association (VNCA) members hold 60% market share
- VICEM is the largest producer with 18 million tons output in 2022
- Vissai Group capacity at 12.5 million tons/year
Vietnam's cement industry faces oversupply despite growing production and exports.
Capacity and Utilization
- Cement production capacity utilization in Vietnam was 72% in 2022
- Total installed cement capacity in Vietnam stood at 136 million tons per year as of 2023
- VICEM holds 25% of Vietnam's total cement capacity at 34 million tons/year
- New cement capacity additions in Vietnam totaled 5.2 million tons in 2022-2023
- Capacity utilization rate dropped to 65% in H1 2023 due to oversupply
- Vietnam's clinker capacity reached 78 million tons/year in 2022
- Idle cement capacity in Vietnam was 40 million tons in 2023
- Regional capacity distribution: North 45%, South 35%, Central 20% in 2023
- Cement grinding capacity expanded by 3.1 million tons in 2022
- Utilization rate in northern plants averaged 68% in 2022
- Southern plants utilization was 75% in 2022
- Planned capacity reduction of 10 million tons by 2025 announced in 2023
- Actual clinker utilization rate was 58% in 2023
- Total capacity grew to 140 million tpa by end-2023
- Utilization in 2021 was 78%
- Thang Long Cement new line 2.5 mtpa added 2022
- Oversupply led to 35% idle capacity north in 2023
- Clinker capacity utilization 62% H1 2023
- 15 million tons capacity mothballed in 2023
Capacity and Utilization Interpretation
Vietnam's cement industry is building a skyscraper of oversupply, where for every three bags it can make, one is just sitting around collecting dust and another is only half-full.
Companies and Market Share
- Vietnam Cement Association (VNCA) members hold 60% market share
- VICEM is the largest producer with 18 million tons output in 2022
- Vissai Group capacity at 12.5 million tons/year
- Ha Tien Cement market share 12% in southern region
- Chinfon Cement output 6.8 million tons in 2022
- Number of cement plants in Vietnam: 92 as of 2023
- Top 10 companies control 75% of capacity
- Bim Son Cement revenue USD 450 million in 2022
- Foreign investment in cement: 15% of total capacity
- Nghi Son Cement market share 8%
- Private sector share in production: 55% in 2022
- State-owned enterprises output 42 million tons in 2022
- New entrants added 2 plants in 2023
- Market concentration ratio CR5 at 52% in 2022
- Hoa Phat Cement market share 5%
- Fico Cement capacity 4.2 mtpa
- Revenue top 5 firms USD 3.8 billion 2022
- 85 grinding stations operational 2023
- Private firms profit growth 12% 2022
- INSEE Cement (Holcim) share 7%
- Mergers reduced plants by 3 in 2022
- CR10 ratio 68% 2023
- Dong Mai Cement revenue USD 200m 2022
- FDI firms 20 plants
Companies and Market Share Interpretation
Vietnam's cement market is a concrete jungle where the state-owned VICEM towers as the undisputed king, a formidable phalanx of private firms holds the majority of the field, and despite a crowded landscape of 92 plants, the real power is firmly set among a top tier who have clearly mastered the art of consolidation.
Consumption and Demand
- Cement consumption in Vietnam was 72 million tons in 2022, down 3% from 2021
- Per capita cement consumption in Vietnam reached 72 kg in 2022
- Domestic demand grew 4.5% to 75 million tons in H1 2023
- Construction sector accounted for 85% of cement demand in 2022
- Infrastructure projects drove 25% increase in demand in Q3 2022
- Urbanization led to 6% annual demand growth projected to 2025
- Real estate sector consumption was 28 million tons in 2022
- Northern region consumed 32% of total cement in 2022
- Southern Vietnam cement demand hit 38 million tons in 2022
- Export-driven demand adjustment reduced domestic use by 5% in 2023
- Hydropower projects consumed 4.2 million tons of cement in 2022
- Road construction demand for cement was 15 million tons in 2022
- Housing sector demand projected at 40 million tons for 2023
- Demand forecast 80 million tons for 2023
- Per capita consumption projected 75kg by 2025
- Industrial parks demand 5 million tons 2022
- H2 2022 consumption 36 million tons
- Public investment projects 20 million tons demand 2023
- Central region demand 22 million tons 2022
- Recovery in real estate to boost demand 10% 2024
Consumption and Demand Interpretation
While Vietnam's cement industry momentarily stumbled in 2022, its foundation remains solid, fueled by relentless urbanization, infrastructure ambitions, and a projected real estate recovery, all pointing towards a future where the nation quite literally builds itself upward again.
Economic and Environmental Impact
- CO2 emissions from cement production totaled 65 million tons in 2022
- Energy consumption per ton of cement: 110 kWh in 2022
- Employment in cement sector: 120,000 direct jobs in 2023
- Tax contributions USD 800 million in 2022
- Waste co-processing rate 5% of fuel needs in 2022
- Dust emission standards compliance 95% of plants in 2023
- Green cement production share 12% in 2023
- Water usage per ton 250 liters industry average
- Export taxes on cement reduced to 0% in 2022 boosting trade
- R&D investment 2% of revenue for top firms
- 1.5% GDP contribution projected 2025
- PM2.5 reduction 20% via new filters 2023
- 150,000 jobs including indirect 2023
- Biomass use 3% alternative fuel 2022
- Export revenue contribution 0.8% national exports 2022
- NOx emissions down 15% compliance upgrades
- Recycling industrial waste 1.2 mt fuel equivalent 2022
- Carbon tax pilot on cement 2024 USD 5/ton CO2
- Energy intensity reduced 5% to 105 kWh/ton 2023
- Social investment USD 50m community projects 2022
Economic and Environmental Impact Interpretation
Vietnam's cement industry stands as a burly paradox, pouring economic foundations with 120,000 jobs while sweating out 65 million tons of CO₂, yet it's diligently scrubbing its smokestacks, sipping water more modestly, and flirting with green cement and alternative fuels, all while bracing for a carbon tax and hoping its heavy economic footprint doesn't become too literal.
Exports and Imports
- Vietnam exported 32.5 million tons of cement and clinker in 2022
- Cement exports value reached USD 1.2 billion in 2022
- Clinker exports from Vietnam were 22.1 million tons in 2022
- Top export destination USA imported 8.4 million tons in 2022
- Philippines received 5.2 million tons of Vietnamese cement in 2022
- Export volume grew 12% to 15.3 million tons in H1 2023
- Cement imports into Vietnam were only 0.8 million tons in 2022
- Trade surplus in cement reached USD 900 million in 2022
- Bangladesh imported 3.9 million tons from Vietnam in 2022
- EU markets took 4.1 million tons of Vietnamese clinker in 2022
- Export price averaged USD 45/ton for cement in 2022
- Q4 2022 exports surged 18% to 8.7 million tons
- Imports of specialized cement types were 0.3 million tons in 2023
- Exports to Africa 2.1 million tons 2022
- Clinker shipments to India 1.8 mt 2022
- US anti-dumping duties affected 10% exports 2023
- Total export value H1 2023 USD 650 million
- Imports from China 0.4 mt 2022
- SEA exports 60% of total volume 2022
- Price decline to USD 38/ton Q3 2023
- Taiwan market 2.5 mt imports 2022
- Import duties on clinker 5% average
Exports and Imports Interpretation
Vietnam has masterfully turned cement into a diplomatic currency, building its way to a nearly billion-dollar trade surplus while the world, quite literally, buys it by the ton at bargain prices.
Prices, Costs, and Financials
- Cement prices in Vietnam averaged VND 1.3 million/ton in 2022
- Production cost per ton rose 15% to VND 850,000 in 2023 due to energy prices
- Industry revenue totaled USD 5.2 billion in 2022
- Profit margin averaged 8.5% for major firms in 2022
- Electricity cost accounts for 40% of total production costs
- Coal import costs increased 20% impacting cement prices in 2023
- Average export price USD 42/ton in H1 2023
- Domestic price hike of 10% in Q2 2023 to VND 1.45 million/ton
- VICEM net profit USD 120 million in 2022
- Total industry investment USD 2.1 billion in 2022
- Logistics costs 12% of total expenses
- Clinker production cost VND 1.1 million/ton in 2022
- Average price VND 1.35m/ton Q1 2023
- Fuel costs 35% of total, coal VND 2.5m/ton
- EBITDA margin 15% VICEM 2022
- Debt ratio industry average 45% 2022
- Capex USD 500m new tech 2022
- Labor cost 8% of production expenses
- Profit after tax USD 400m total industry 2022
- Raw material costs up 18% 2023 limestone VND 150k/ton
- Export FOB price USD 48/ton clinker 2022
Prices, Costs, and Financials Interpretation
While enjoying a respectable 8.5% profit slice of a $5.2 billion revenue pie in 2022, Vietnam's cement producers spent 2023 desperately trying to stop their margins from crumbling as energy and raw material costs—which make up a whopping 75% of their expenses—soared, forcing domestic prices up 10% just to keep the kilns burning.
Production Statistics
- In 2022, Vietnam's cement production reached 98.5 million tons, marking a 5.2% increase from 2021
- Vietnam's cement industry produced 72.6 million tons in the first half of 2023, up 6% year-on-year
- Annual cement production in Vietnam averaged 95 million tons between 2018-2022
- In Q4 2022, Vietnam produced 24.8 million tons of cement, a 4.1% rise from Q4 2021
- Cement clinker production in Vietnam hit 32.4 million tons in 2022
- Vietnam's cement output grew by 2.5% to 97.3 million tons in 2021
- Monthly cement production in Vietnam averaged 8.1 million tons in 2023
- In 2020, pandemic-affected cement production was 91.2 million tons, down 10% from 2019
- Northern Vietnam's cement production reached 28.7 million tons in 2022
- Southern region's cement production was 35.2 million tons in 2022
- Central Vietnam produced 18.9 million tons of cement in 2022
- Vietnam's Portland cement production was 65.4 million tons in 2022
- Blended cement output in Vietnam reached 33.1 million tons in 2022
- Cement industry contributed 1.2% to Vietnam's GDP in 2022
- Cement production growth rate 3.8% forecasted for 2023
- In 2019, Vietnam produced 94 million tons of cement
- Q1 2023 production 23.1 million tons, up 7%
- Clinker production H1 2023: 16.8 million tons
- Export-oriented clinker production 40% of total in 2022
Production Statistics Interpretation
Vietnam's cement industry is quite literally laying a rock-solid foundation for its economy, consistently mixing ambition with concrete growth, even when the global mortar seemed to be cracking.
Sources & References
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