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Cement producers flounder to meet demand
Cement is in high demand in Vientiane as manufacturers struggle to supply adequate quantities of the material to meet needs.
The Lao Cement Producers Group attributes the reason to a rise in demand for cement from the capital's construction sector.
The number of construction projects in Laos is increasing each year but cement production capacity remains the same.
Laos has seven cement manufacturers which only produce 80 percent of total domestic demand.
Lao Cement Producer Group Secretary General Mr. Inpone Phananoulack said on Monday that cement producers have been supplying the Nam Ngum 5 hydropower project, which uses 120 tonnes of cement per day, and the company constructing the Luang Prabang International Airport.
“The Nam Ngum 2 and 3 hydropower projects have also asked for 10,000 tonnes per month but we rejected their order due to our limited production capacity.”
According to a source who asked not to be named, the lack of cement in Vientiane is related to rising oil prices in the world market, causing delays in transport carrying cement to the capital.
Mr. Inpone said the price of cement will remain the same from now until the general election on April 30 but warned that some traders may take the opportunity to raise the price of cement.
He said the price could be adjusted after the election if oil prices in the world market continue to rise.
“I believe that the supply of cement in Vientiane will return to normal this week. Vangvieng cement factories will start supplying the Vientiane market today,” he said.
The price for green grade cement is between 680,000 kip and 710,000 kip per tonne and red grade cement 750,000 kip to 780, 000 kip per tonne.
Currently, the total production capacity of Laos' seven cement manufacturers is about 1.55 million tonnes a year which is not enough to met market demand, forcing some provinces to import the material from Thailand and Vietnam.
Many Lao people say they want to use Lao cement as its quality is better than imported cement but domestic cement producers can't supply enough.
Laos plans to increase cement production to meet domestic needs and reduce imports.
A new cement factory in Saravan province, with production capacity of 1,000 tonnes per day, was scheduled to open this month but has been delayed until June.
The Lao economy continues to grow, driven by the inflow of foreign direct investment after the Party announced its innovation policy in 1986.
As a result, Laos has become more integrated with the rest of the region as investors are using Laos as a production base due to the nation's rich resources and cheap labour.
Investment in the real estate sector has increased rapidly over the past few years, leading to the rise in demand for cement.
vientiane times
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