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
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