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While China is planning to cut 500 million tons of clinker each year to restructure the industry and balance supply and demand, in Vietnam, policies are encouraging an increase in capacity and output, opening up a new stage of recovery and breakthrough for the cement industry.

1. Domestic market: Prolonged rainy season slows down consumption

Output and general trends

In Q3/2025, domestic cement consumption reached about 18 million tons, equivalent to 79% of Q2, a decrease of about 21%. The main reason comes from unfavorable weather: prolonged storms disrupted construction and clinker transportation, especially in the northern and central provinces – which were directly affected by four major storms in September 2025 alone.

Not only did consumption decline, but many enterprises also faced marine transportation risks. A typical case was the Thái Hà 8888 vessel carrying over 6,000 tons of bulk cement, which sank off the coast of Thừa Thiên Huế in October, causing significant cargo damage.

Southern region: Resilient and booming

In contrast to the North, the Southern market maintained stable consumption thanks to strong momentum from public investment. The disbursement of capital reached the highest level in many years, boosting stable demand for basic materials such as cement, steel, sand, and stone.

Key infrastructure projects such as the North–South Expressway (phase 2), Ring Road 3 in Ho Chi Minh City, Ring Road 4 in Hanoi, Long Thanh Airport, along with a series of port, bridge, and road projects, are entering peak construction phases, helping cement factories in the southern region maintain steady production.

2. Export market: A bright spot during the low season

Contrary to the domestic slowdown, Vietnam’s cement export market in Q3/2025 continued to improve. The total volume of cement and clinker exports reached about 9.5 million tons, up roughly 10% compared to Q2/2025.

Domestic enterprises actively expanded export orders to the Middle East, Africa, and Eastern Europe to maintain stable operations amid domestic challenges. Despite trade barriers such as anti-dumping duties in the Philippines and Taiwan, or a 20% import tariff in the U.S., Vietnamese cement has maintained its export momentum, affirming its competitiveness in the mid-to-high segment of the regional market.

Moving towards “green” production

In addition to trade activities, Vietnam’s cement industry is accelerating its green transformation. While major competitors such as China and Indonesia have carried out strong restructuring and applied mandatory renewable energy ratios, Vietnam has also made significant progress. Companies such as Vicem, Lam Thach, and Cong Thanh are investing in waste-heat recovery power generation systems to reduce CO₂ emissions and optimize energy costs in production.

3. Q4/2025 Outlook: Expectation of strong recovery

Entering Q4/2025, with drier weather and continued strong disbursement of public investment, the cement market is expected to see strong growth in both domestic and export demand.

If there are no major fluctuations in energy or transport costs, Q4/2025 is forecast to be a “breakthrough” quarter, helping enterprises offset Q3’s decline and opening a new growth cycle for the entire industry.

VietnamCement #CementMarket2025 #ClinkerExport #VietnamExporter #CementIndustry #SustainableCement #GreenBuildingMaterials #CementTrade #ConstructionVietnam #Greencement

Source: ximang.vn
Author: Elly Nguyen (+84 369 980 010)

In July 2025, Vietnam exported over 3 million tons of cement and clinker, up 12% compared to June. However, this growth was not sufficient to offset trade barriers in major export markets.

In terms of structure, cement accounted for nearly 1.8 million tons (slightly down from the previous month but up 19% year-on-year), while clinker exceeded 1.21 million tons, surging 57% month-on-month and 23% year-on-year. The ratio between cement and clinker stood at approximately 60/40.

Export value in July reached around USD 116.32 million, up 8% from June and 20% compared to July 2024.

Cumulatively, in the first 7 months of 2025, total exports reached nearly 19.93 million tons, an increase of 9.1% year-on-year.

Growth drivers – domestic and export markets

Domestic consumption has been recovering strongly: in the first half of 2025, total cement output reached 60.59 million tons, up 62% compared to the same period in 2024. Of this, domestic sales stood at 37.64 million tons, up 39%. The main drivers were robust public investment, looser credit, and lower interest rates.

However, the industry still faces significant overcapacity: around 122 million tons/year, nearly double actual demand. As a result, many plants are operating below capacity or incurring losses to maintain market share.

Exports in the first 6 months rose modestly: 16.92 million tons worth over USD 634 million, up 6% and 5% respectively year-on-year.

Outlook for the First Three Quarters of 2025

1. Exports to maintain positive momentum
With steady growth in July and August, total cement–clinker exports by the end of Q3 are projected at 23–24 million tons, up 10–12% year-on-year. Export turnover is estimated at USD 870–890 million, reflecting a clearer recovery trend in the second half of the year.

2. Shifting market structure
Clinker continues to gain share thanks to demand from Asian markets such as Bangladesh and the Philippines. Meanwhile, cement exports are under heavy pressure from trade defense measures (Taiwan, the Philippines), forcing producers to restructure distribution channels or accept lower margins.

3. Domestic market as a stabilizing pillar
The strong domestic growth seen in the first half of 2025 is likely to persist through Q3, supported by accelerated public investment. This provides balance against export volatility and helps reduce inventory pressure on producers.

4. Risks and challenges
Beyond prolonged overcapacity, the industry faces high production costs (fuel, logistics) and intense regional competition. To remain competitive, companies need to enhance technology, develop green products, and explore niche markets.

Overall Assessment

By the end of the first three quarters of 2025, Vietnam’s cement–clinker industry shows clear signs of recovery, supported by both export growth and domestic consumption. However, the outlook for the full year still depends heavily on how enterprises adapt to international trade barriers and address structural overcapacity. Supportive policies such as export tax reductions, along with strong public investment, will be critical in sustaining growth momentum in the final months of the year.

Collector: Ms. Elly Nguyen – Sales Manager

Whatsapp: +84 369 980 010

In the first half of 2025, total cement and clinker consumption across Vietnam (including exports) reached 53.79 million tons, marking a 12.7% increase compared to the same period in 2024. Domestic demand surged impressively to 36.89 million tons, up 15.5% year-over-year.

Among market leaders, VICEM reaffirmed its industry-leading position with 10.11 million tons consumed, a robust 18.7% increase. Joint ventures contributed 6.38 million tons (+13.2%), while the non-state sector reached 20.10 million tons (+14.6%).

Following consolidated results across its member units, VICEM’s parent company recorded a profit of VND 192.7 billion, marking a major turnaround from the loss in the same period last year. This strong recovery demonstrates VICEM’s effective governance and resilience in an increasingly competitive market.

Looking ahead to Q3 and the rest of the year, domestic cement demand is expected to continue rising, driven by accelerated public investment, particularly in infrastructure and construction. The real estate sector is also projected to recover as legal bottlenecks begin to ease.

Notably, VICEM has been positioned by the government not only as a commercial entity but also as a market stabilizer and industry leader, with a key responsibility to preserve State capital and support national infrastructure development.

Still, the cement industry faces multiple challenges:

  • Early onset of stormy weather in the North and Central regions is likely to disrupt construction progress;
  • Increasing price competition and market saturation;
  • Shifting demand patterns from bagged cement to bulk, and from premium to lower-cost products, placing pressure on profit margins.

In response, VICEM has prioritized its “Green Cement” strategy, focusing on:

  • Expanding mining capacity to secure raw material supply;
  • Upgrading production lines to improve efficiency and reduce energy consumption;
  • Investing in waste heat recovery power systems at cement plants – reducing electricity costs and cutting CO₂ emissions, in line with sustainable development goals.

In this green transition journey, Supas Vietnam is proud to stand alongside VICEM and the broader cement industry, delivering high-quality, environmentally responsible solutions and supporting the sustainable future of Vietnam’s construction sector.

#Vicem2025 #CementMarket #GreenCement #SupasVietnam #ClinkerExport #VietnamLogistics #SustainableGrowth #InfrastructureDevelopment #PublicInvestment #VietnamRealEstate #ConstructionIndustry #VietnamCement #NetZeroTransition

Collector: Ms. Elly (+84 369 980 010)

Clinker Export Tax Cut: A Fresh Breeze for Vietnam’s Cement Industry?

Starting from May 19, 2025, Vietnam’s cement industry has entered a new chapter. Under Decree 108/2025/NĐ-CP, the export tax on clinker has been reduced from 10% to 5%. This policy is valid until the end of 2026 and will return to the original rate in 2027.

This is more than just a tax change. It’s a clear signal from the government to ease difficulties and revive an industry under pressure both at home and abroad.

🎯 Two goals at once: Relief and momentum

After years of oversupply, with 92 production lines but only 77% running, and 34 lines already shut down, Vietnam’s cement industry is facing serious challenges in inventory, cash flow, and market demand.

The clinker tax cut acts as a release valve, giving companies a chance to:

Clear excess inventory and ease financial pressure
Offer better export prices to compete with low-cost rivals like China and Indonesia
Restructure operations or invest in green technology

📉 Short-term: Still uncertain

The policy is positive, but the market hasn’t responded clearly. Some deals are delayed as companies wait for guidance or haven’t adjusted prices yet.

Current FOB clinker prices remain at USD 35–38/ton, still low and not yet reflecting the new tax advantage.

📈 Mid-term: Optimism on the horizon

Data from early 2025 shows clinker exports rose 3.2% in the first four months. The policy is starting to work, though external factors continue to hold back a strong rebound.

🌍 External barriers still exist

The Philippines is considering extending safeguard tariffs.
Taiwan has already applied anti-dumping duties.
The US hasn’t acted yet, but exporters remain cautious.

👷 SUPAS seizes the opportunity

SUPAS, a key player in clinker and bulk cement exports, is adjusting strategy in line with the new tax change. With logistics advantages, stable material sources, and global clients, SUPAS believes this is the right moment to grow market share and long-term strength.

🔮 What’s next?

If exporters quickly adjust prices and leverage public investment, Vietnam’s clinker exports could grow 10–15% in 2025.

👉 Lower taxes are just the beginning. For real progress, the industry must go greener, improve product quality, and make the most of trade agreements.

Collector: Ms. Elly (+84 369 980 010)

#ClinkerExport #VietnamCement #TaxPolicy #ExportStrategy #SUPAS #CementIndustry #ConstructionMaterials #GreenCement #TradeUpdate #VietnamManufacturin

According to the latest report from the Cement Information and Data Center (CIDC), cement consumption in Vietnam saw a notable decline in May 2025 across multiple regions. The primary cause stems from a significant shortage of essential construction materials.

Construction Material Shortage Pushes Prices to Record Highs

Many construction projects, especially in the northern and southern regions, were forced to delay or pause due to limited availability of sand and stone. In northern provinces, the price of construction sand surged from VND 250,000–270,000 per cubic meter to as high as VND 500,000–700,000/m³, leaving contractors in a tough position.

In addition, brick prices experienced a steep spike in May. In some northern areas, brick prices rose 3 to 4 times compared to earlier this year—from VND 500–600 per unit to VND 2,000–2,200. Several dealers even reported running out of stock due to the supply crunch.

Weather and Bureaucracy Further Slow Progress

In central Vietnam, early seasonal rains hampered outdoor construction work, reducing cement demand in the region.

At the same time, ongoing administrative restructuring in some localities delayed construction permits. This bureaucratic bottleneck caused many contractors to postpone groundbreaking or scale back operations—further weakening demand for building materials.

Collected by: Ms. Elly (+84 369 980 010)

#ConstructionCrisis #VietnamCement #CementMarket2025 #BuildingMaterialShortage #SandPriceHike #BrickPriceSurge #VietnamConstruction #ProjectDelays #MaterialInflation #CementDemandDrop #WeatherImpact #PermitDelays #ConstructionChallenges #SupplyChainIssues #SustainableBuilding

In April 2025, Vietnam’s cement exports continued their upward momentum, reaching over 2.04 million tons—an increase of 11% compared to both March 2025 and the same month last year. In stark contrast, clinker exports dropped sharply to just over 909,570 tons, a 23% decline from the previous month. This shift highlights a clear trend: cement is now dominating the export mix, accounting for 69% of the total export volume.

Throughout April, cement prices remained stable, with no significant fluctuations from March. Domestic production capacity has proven sufficient to meet both local consumption and growing international demand.

Asian markets continued to be the primary destinations for Vietnamese clinker and cement. The Philippines led the way with nearly 2.63 million tons imported, valued at approximately USD 98.9 million. However, this still reflected a 5.1% drop in volume and a 12.9% decrease in value compared to the same period last year. The average export price fell to just USD 37.6/ton—the lowest level recorded in the past two years.

Bangladesh ranked second, importing around 2.19 million tons worth USD 67.76 million. This marked a steep decline of 24.7% in volume and 26.7% in value. The average price for this market was even lower—just over USD 30.9/ton—the lowest among Vietnam’s key export destinations.

Several factors are shaping this divergence in the export landscape:

  • Surging domestic demand for cement has significantly reduced surplus clinker available for export.
  • New floor pricing policies and tighter export regulations have created additional barriers, especially for clinker.
  • Strategic alignment among major exporters is steering the industry toward healthier competition and a focus on higher-value products.
  • Most notably, the inconsistent U.S. trade and tax policies are emerging as a new source of uncertainty. The lack of clear direction from the U.S. government has made it difficult for Vietnamese exporters to plan for long-term market engagement.

Edited by: Ms. Elly (+84 369 980 010)

#VietnamCement #CementExport #ClinkerExport #ConstructionMaterials #SoutheastAsiaTrade #GreenCement #GlobalSupplyChain #SustainableConstruction #BuildingMaterials #CementIndustryTrends #ExportUpdate #MarketInsight #VietnamIndustry #TradePolicy #EnergyTransition #LogisticsAsia #CementMarket2025

Despite high input costs and a sluggish real estate market, Vietnam’s cement industry recorded a notable recovery in both domestic consumption and export performance during the first quarter of 2025.

According to the Q1/2025 Cement Market Report, domestic consumption in March reached approximately 8.55 million tons—an increase of 17% compared to the same period in 2024 and nearly triple that of February. Cumulatively, total domestic consumption in Q1 reached 15.06 million tons, up 31% year-on-year. On the export side, 3.03 million tons were shipped in March, a 7% increase over the previous year. Total exports for the first three months hit 8.32 million tons, contributing to a combined Q1 industry consumption of around 23.38 million tons—nearly 20% higher than the same quarter last year.

This growth comes amid global uncertainties tied to geopolitical tensions and the ongoing energy transition, which have kept input material prices—especially crude oil—at elevated levels. This has directly impacted production and logistics costs across the cement supply chain. Domestically, renewed demand was driven by public infrastructure investments and some recovery signs from the private construction sector.

Fluctuations in coal, fuel, and electricity prices have posed challenges, forcing many domestic cement producers to adjust selling prices to offset rising costs. Nevertheless, shifting consumer preferences toward environmentally friendly products and operational flexibility have enabled the industry to maintain stability under less-than-ideal market conditions.

According to the Vietnam Cement Association, per capita cement consumption remains relatively low—below 650 kg/year—compared to over 1,000 kg in countries with a GDP per capita of around USD 4,000 or more. This indicates significant growth potential, provided that economic conditions continue to improve.

Collector: Ms. Elly (+84 369 980 010)

At this part, we will discuss about small bag firstly:

1️⃣ Bag Breakage Rate

PP 50kg Bags:
PP 50kg bags are the most common type of cement packaging due to their low production cost and ease of manufacturing. However, their single-layer woven polypropylene structure offers only moderate mechanical strength. In real-world use, the breakage rate during transportation, handling, and storage ranges from 0.3% to 0.5%. This rate is acceptable for the mass market, but for long-distance transport or frequent handling, it poses a risk of product loss.

PK 50kg Bags:
PK bags are considered premium packaging, combining an outer polypropylene layer with an inner kraft paper layer, creating excellent durability. With a breakage rate of less than 0.1%, PK bags perform exceptionally well, even during long-distance transport or container shipping for exports. As a result, PK bags are the preferred choice for major cement manufacturers, especially for high-end brands.

KKK 50kg Bags:
KKK bags (Kraft-Kraft-Kraft) are made from three layers of kraft paper, which provides decent mechanical strength, resulting in a breakage rate of less than 0.3%. While not as strong as PK bags, they still provide adequate protection for domestic transport when handled carefully.

2️⃣ Mechanical Durability

PP 50kg Bags:
With just one thin layer of polypropylene, PP bags offer limited durability. In drop tests from 2 meters, PP bags withstand approximately 12 drops before signs of tearing or seam failure appear. This level of durability is suitable for short-distance transportation and direct sales to local distributors or retailers.

PK 50kg Bags:
Thanks to its multi-layer structure, PK bags demonstrate excellent resistance to impact and tearing. In the same 2-meter drop test, PK bags withstand over 20 consecutive drops, highlighting their superior durability. PK bags are well-suited for both domestic sales and exports, particularly in automated handling systems and container shipping.

KKK 50kg Bags:
Although made entirely from kraft paper, the triple-layer design gives KKK bags fairly good durability. However, they are still less durable than PK bags. The performance of KKK bags is highly dependent on storage conditions, and prolonged exposure to moisture can significantly weaken the paper.

3️⃣ Moisture Resistance

PP 50kg Bags:
With only a single plastic layer, PP bags provide limited moisture protection. Cement packaged in PP bags should ideally be used within two months to avoid clumping caused by moisture absorption. In suboptimal warehouse conditions, PP bags are prone to moisture penetration, which reduces cement quality.

PK 50kg Bags:
PK bags combine a moisture-resistant PP outer layer with a kraft paper inner layer that helps release trapped air and balance internal pressure. This combination allows PK bags to protect cement for over six months, even in less-than-ideal storage environments.

KKK 50kg Bags:
With three layers of kraft paper, KKK bags offer better moisture resistance than PP bags, but they are still less effective than PK bags due to the lack of an external plastic barrier. Proper storage conditions are essential when using KKK bags, especially in humid climates.

4️⃣ Appearance and Branding Potential

PP 50kg Bags:
PP bags support high-quality printing thanks to the smooth polypropylene surface, ensuring sharp, vibrant brand logos and product information. However, due to their thin material and tendency to lose shape, they often appear less structured and neat, which can reduce visual appeal in retail displays.

PK 50kg Bags:
PK bags are highly regarded for their appearance. Their square, well-formed shape enhances stacking efficiency and visual presentation. With advanced printing technology, PK bags deliver crisp, vibrant branding, which can increase brand recognition by up to 30%, particularly in export markets.

KKK 50kg Bags:
KKK bags also offer a neat, square shape, and printing on kraft paper surfaces produces clear, attractive branding, making them a good choice for premium products.

5️⃣ Cleanliness and Surface Dust Control

PP 50kg Bags:
PP bags tend to collect cement dust on their surface after filling, making cleaning difficult, especially at construction sites where appearance matters.

PK 50kg Bags:
The kraft inner layer of PK bags helps contain cement dust inside the bag, keeping the outer PP surface cleaner and easier to wipe down during handling and storage.

KKK 50kg Bags:
KKK bags offer similar cleanliness benefits to PK bags, with less surface dust accumulation compared to PP bags.

6️⃣ Environmental Impact

PP 50kg Bags:
Made from synthetic plastic, PP bags decompose very slowly in the natural environment, though they are recyclable after collection.

PK 50kg Bags:
PK bags contain both plastic and paper components, making them partially recyclable, though separating materials can be challenging.

KKK 50kg Bags:
Composed entirely of kraft paper, KKK bags decompose much faster than plastic bags. However, their production requires a significant amount of timber, raising concerns about deforestation and resource consumption.

Conclusion

  • PK 50kg Bags are the most well-rounded choice, offering excellent protection, durability, and branding potential, making them ideal for premium cement brands, particularly those targeting export markets.
  • PP 50kg Bags are the most economical choice, suitable for domestic markets with short supply chains and lower packaging requirements.

What Types of Bags Are Used in Your Region?

We’d love to hear your insights — share your experience with us!

Author: Elly Nguyen

Whatsapp/ Zalo/ Viber:: +84 369 980 010

As global environmental standards tighten, Vietnam’s cement industry faces mounting pressure to cut carbon emissions while ensuring sustainable growth. With the country’s commitment to achieving Net Zero by 2050, cement manufacturers must adopt greener solutions to maintain their competitive edge.

The Pressure to Reduce CO₂ in Cement Production

Cement is one of the world’s largest CO₂-emitting industries, accounting for 7-8% of total global emissions. In Vietnam, where annual cement production exceeds 100 million tons, the environmental impact is immense. Without immediate improvements, local companies risk losing key export markets to competitors from Thailand, China, and the EU, who have already met strict green standards.

According to the Vietnam Cement Association, around 80% of domestic cement is produced using modern, high-capacity production lines, while 20% still comes from smaller, less efficient plants. As per the government’s Construction Industry Development Strategy, the sector aims to cut emissions to 650 kg CO₂ per ton of cement by 2030, further reducing it to 550 kg CO₂ per ton by 2050.

Green Solutions in Action

To align with the shift towards low-carbon production, many Vietnamese cement manufacturers are adopting advanced eco-friendly technologies:

Waste Heat Recovery (WHR) Systems: WHR enables plants to self-generate 25-30% of their electricity, significantly cutting CO₂ emissions.

Alternative Fuels: Instead of coal, plants are experimenting with industrial waste and biomass fuels to lower carbon output.

Reducing Clinker Content in Cement: This is the most effective method for cutting CO₂. However, consumer preference for high-clinker cement remains a challenge. In the EU, cement contains around 77% clinker, while in Japan, it is about 70%. In contrast, Vietnam’s 2021 cement exports—totaling 17 million tons—were mostly high-clinker varieties with only 5% mineral additives (CEM I under EN 197-1 and Type I under ASTM C150). Changing market perception of green cement remains a major hurdle.

AI & IoT Integration: Smart technologies optimize operations, reducing energy consumption and emissions.

What’s Next for Vietnam’s Cement Industry?

Despite significant progress, challenges remain in Vietnam’s pursuit of Net Zero. Transitioning to green production requires heavy investment, while fierce market competition pressures companies to keep costs low. Failure to adapt could see domestic manufacturers lose access to major markets like the EU and the US, which have introduced carbon border taxes on high-emission products.

Green production is no longer an option—it is a necessity. Here, Supas Vietnam commits to accompany and contribute to the green revolution of the cement industry in particular and to reduce global CO2 emissions in general.

Compiled by: Elly Nguyen

Whatsapp/ zalo/ viber: +84 369 980 010

Clinker Market Fluctuations in early 2025
After a prolonged period of stagnation, the clinker market finally showed clearer signals of change in December 2024 and early January 2025.

For state-owned factories, high floor price policies significantly reduced clinker export volumes. Previously, Bangladesh had been Vietnam’s largest clinker importer, but with prices now reaching $34-37 per ton, interest from this market has nearly vanished. In response, state-owned factories have shifted their focus to producing finished cement products, targeting higher-value markets and aiming to increase the industry’s average price level.

Record Low Prices for Private Producers
In contrast, private factories, driven by the need for cash flow and inventory clearance, lowered their clinker prices to a record low of $28-30 per ton during late 2024 and early 2025. However, the quality of products during this period was noted to vary significantly. The sharp price drop triggered a surge in demand, with end-importers rushing to purchase, pushing factory production capacities to their limits through February 2025.

Future Price Trends
By March 2025, clinker prices from both state-owned and private producers are expected to stabilize. Import order volumes are also predicted to decrease compared to the previous period of heightened activity. Whether the market will recover in both pricing and volume remains an open question, with no definitive answers yet.

Author: Elly Nguyen – Sales Manager of Supas Vietnam

Whatsapp: +84 369 980 010