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30
Oct

Vietnam Cement Market Q3/2025: “Hinge for a New Growth Cycle”

Posted on Categories Cement, Clinker Author By quantri Leave a comment

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)

09
Sep

From Domestic Recovery to Export Breakthrough: Outlook for the First Three Quarters of 2025

Posted on Categories Uncategorized Author By quantri Leave a comment

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

08
Jul

Cement Consumption on the Rise – VICEM Makes a Strong Comeback

Posted on Categories Cement, Clinker, Uncategorized Author By quantri Leave a comment

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)

04
Apr

Vietnam’s Cement Industry Sees Impressive Growth in Q1/2025

Posted on Categories Cement, Clinker Author By quantri Leave a comment

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)

10
Feb

Vietnam’s Cement Industry Faces Carbon Emission Reduction Challenge: Inevitable Trend or Competitive Pressure?

Posted on Categories Cement, Clinker, Uncategorized Author By quantri Leave a comment

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

15
Jan

Vietnam Cement Industry and Supas’ Efforts  in 2024

Posted on Categories Cement, Clinker, Uncategorized Author By quantri Leave a comment

Challenges of the Cement Industry
The year 2024 posed significant challenges for Vietnam’s cement sector, primarily due to a severe supply surplus while both domestic and export markets faced fierce price competition. Major export markets like the Philippines, Bangladesh, and the United States showed a decline in demand. The Philippines, in particular, struggled with anti-dumping tariffs and trade protection policies, while Bangladesh faced difficulties stemming from political instability. Additionally, the shift in many countries from bagged cement to bulk cement reduced the perceived value of exports, as the brand identity is often tied to bagged products.

Transport costs were also impacted, with shipping rates on long-distance routes rising by 5-10% due to geopolitical tensions in the Red Sea region. Delivery times extended by an additional 5-7 days. Compounding these challenges, a state-mandated electricity price adjustment in late 2024 raised the costs of cement and clinker by 30,000-40,000 VND per ton, adding pressure on businesses.

Production output suffered, with several manufacturing lines temporarily halting operations due to sluggish demand. Even large players like the Vicem Group reported significant losses, with parent company profits falling by 236.8 billion VND and consolidated losses exceeding 1,400 billion VND, reflecting the overall market downturn.

Despite these difficulties, cement companies worked tirelessly to cut input costs, adopt eco-friendly raw materials, and reduce environmental impact. They also explored new markets, streamlined their supply chains, and connected directly with end buyers to improve efficiency.

Profit of Vicem from 2016 – 2024

Supas’ Efforts in 2024
Amid this volatile environment, Supas demonstrated resilience and strategic agility to minimize negative impacts. The company maintained superior product quality, stable pricing, and competitive terms, offering both FOB and CFR delivery options to better accommodate international partners.

Supas also prioritized sustainable development by investing in green product innovations and improving manufacturing technologies to lower carbon emissions, meeting strict environmental standards in Vietnam and abroad.

Furthermore, Supas actively expanded into new markets to reduce dependency on traditional regions. The company focused on developing alternative products like high-quality fly ash and ground slag, aligning with the global trend toward sustainable construction.

With a vision for the future, Supas has set an ambitious target of reducing pollution levels by 60% within the next five years, aiming to become an industry leader in sustainability. The company remains committed to creating long-term value for both domestic and international markets.

Author: Elly Nguyen – Sales Manager of Supas Vietnam

Whatsapp: +84 369 980 010

18
Dec

Challenges and Solutions for Reducing Greenhouse Gas Emissions in the Cement Industry

Posted on Categories Cement Author By quantri Leave a comment

According to Vietnam’s Strategy for Developing Building Materials (2021–2030, with a vision to 2050), the cement industry must reduce emissions to below 650 kg CO2 per ton of cement by 2030. To achieve this, all cement production lines with a capacity of 2,500 tons of clinker per day or more must install and operate waste heat recovery power systems by 2025. Additionally, at least 20% of thermal power fly ash or industrial waste must be used as alternative materials in clinker production by 2025, increasing to 30% by 2030. Alternative fuels are also expected to account for 15% of total fuel used in clinker production.

Major Sources of Emissions

Dr. Luong Duc Long, Vice President and General Secretary of the Vietnam Cement Association, highlights three main sources of emissions in the cement industry:

  1. Raw materials for clinker and cement production.
  2. Fuels used in clinker kilns.
  3. Electricity consumption during production.

Portland cement, which accounts for 99% of global cement production, poses a significant challenge due to the chemistry of clinker production. According to the Intergovernmental Panel on Climate Change (IPCC), 57% of CO2 emissions from clinker production come from the decomposition of raw materials, a process that is currently unavoidable.

Solutions for Reducing Emissions

  1. Waste Heat Recovery Systems:
    Utilizing kiln waste heat for power generation can help factories meet 25–30% of their electricity needs. Currently, 40% of Vietnam’s cement plants with capacities of 2,500 tons of clinker per day or more have adopted this technology.
  2. Alternative Fuels:
    Substituting coal with waste-derived fuels can significantly lower CO2 emissions. Vietnam generates approximately 60,000 tons of municipal solid waste daily, equivalent to 6 million tons of coal annually in energy potential. Although this source remains underutilized, its potential for cement production is promising.
  3. Reducing Clinker Content:
    Lowering the clinker-to-cement ratio by incorporating supplementary cementitious materials is a viable solution. However, consumer acceptance remains a hurdle that needs to be addressed.

Global Comparisons and Opportunities

European cement producers benefit from carbon offset mechanisms like the Carbon Border Adjustment Mechanism (CBAM), which incentivizes the use of waste as fuel. Their emissions are slightly lower than Vietnam’s, at around 850 kg CO2 per ton of clinker compared to Vietnam’s 905 kg CO2 per ton. This demonstrates that with the adoption of advanced technologies and improved resource utilization, Vietnam’s cement industry can close this gap.

Conclusion

Reducing greenhouse gas emissions in the cement industry is a formidable yet achievable goal. By optimizing energy consumption, adopting renewable and waste-derived fuels, and lowering clinker dependency, Vietnam’s cement sector can advance towards sustainability while maintaining production efficiency. The challenge is significant, but so is the opportunity to lead in green cement innovation.

Author: Elly Nguyen
Sales Manager of Supas Vietnam
+84 369 980 010