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Cement plants risk flooding market
While Vietnam is facing a cement shortage, the situation may reverse by 2010 when a series of cement plants start up, warned the Vietnam National Cement Association (VNCA).
According to VNCA, total output of cement facilities nationwide is estimated to be standing at 36 million tonnes per year, while local demand hit nearly 40 million tonnes, leading to the shortage.
However, around 28 new cement plants are being designed to produce an additional 20 million tonnes, expected to be put into operation in 2008-09.
Another 18 cement factories with a total designed capacity of 14 million tonnes are anticipated to be running by 2010, bringing lthe national capacity to more than 60 million tonnes, surpassing demand by an estimated 10 million tonnes.
Industrial experts said the warning was sent out when the facilities were being planned. Only over the past three years did the Ministry of Construction (MoC) ask the Government for permission to build an additional 15 cement plants with a total designed capacity of nearly 14 million tonnes.
The association reported that the warning mainly applied if all capacity was met as planned. With many projects stagnant in the present high inflation, the supply also may not be enough to satisfy the rising demand.
Recently, the MoC sent documents to 14 cities and provinces to suspend granting licences to new cement projects from now to 2015.
The MoC also asked the Government to halt or extend deadlines for investment of projects facing difficulties.
In addition, experts suggested that the State should deny projects using older technologies which could cause serious environmental pollution.
VNA
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