Vietnam cement market keeps solid recovery
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Cement sales in Vietnam rose sharply last month, adding to a rising trend which is expected to continue on the back of a credit package worth 30 trillion dong (Bt43.2 billion) for domestic real estate.
The Ministry of Construction reported cement consumption in the first five months on the domestic market had a year-on-year increase of 9 per cent to 19.15 million tonnes.
Le Van Toi, head of the ministry’s Building Material Department, said that in the first half of May, some cement factories had difficulty sourcing clinker due to the increased cement sales.
The nation had a total cement consumption at home and abroad of 23.8 million tonnes in the first five months. In May alone, the total consumption saw a year-on-year increase of 19 per cent.
Cement producers are awaiting the 30-trillion-dong credit package, which has been approved by the government, along with a soft interest rate to lift the real estate market and related markets such as cement, steel and wood products.
According to the Viet Nam Real Estate Association, many property projects have been suspended due to lack of credit. If these projects receive credit from the package to finish their work, it will promote cement consumption and production.
The package for housing and property traders was necessary to stimulate the property market and other related markets that had suffered in a stagnating property market, said Nguyen Tri Hieu, a board member at Ocean Bank.
