Vietnam cement makers seek halt to new licenses on surplus fear

Vietnam’s cement producers asked the government to stop licensing new plants as supply will likely exceed demand for the commodity, according to a statement on the Ministry of Trade and Industry’s website.

Nguyen Van Thien, chairman of Vietnam’s Cement Association, said in the statement that no new plants should be permitted operate “because a surplus of concrete is visible.”

The Southeast Asian country, among the world’s ten- biggest cement producers, may have a cement surplus of more than 10 million tons in 2010 if its 105 plants run at their full capacity, Thien said. Output may exceed 61 million tons next year, compared with domestic demand of 50 million tons.

Thien said exporting the excess is not feasible due to difficulties such as transportation costs and the product’s lifespan, according to the statement.

thanhnien, Bloomberg

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