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According to preliminary statistics from the General Department of Customs, Vietnam’s cement and clinker exports in March reached over 2.82 million tons, equivalent to over USD 108 million, an increase of 39.5% in volume and 42.2% in value compared to the previous month. Accumulated in the first quarter, this item earned over USD 304 million with over 8.03 million tons, up 2.3% in volume but down 9.6% in value compared to the first quarter of 2023.
The average export price in the first quarter reached USD 38/ton, down 11% compared to the same period last year.
In terms of value, the Philippines is Vietnam’s largest export market for this item with nearly 2 million tons, equivalent to over USD 81 million, a slight increase of 2.3% in volume but a decrease of 7% in value. The average price was USD 40.8/ton, down 9% compared to the same period last year.
Bangladesh is the second largest market with 2.22 million tons, valued at over USD 69 million, up 22% in volume but down 0.5% in value. The average price reached USD 31/ton, down 18% compared to the same period.
Malaysia ranks third with 423,673 tons, equivalent to USD 14.37 million, an increase of 6.8% in volume but a decrease of 13.2% in value, export prices also witnessed a decrease with an average of USD 34/ton, down 18%.
Other major import markets include Taiwan (China), Australia, Chile, Peru, China, Angola, Cambodia and Laos.
Cement is a critical material in construction projects. It acts as a binding agent to hold together construction materials. Clinker is the raw material for cement, and it binds the components together. In 2023, Vietnam exported over 31.3 million tons of clinker and cement, earning over USD 1.32 billion, a decrease of 1.2% in volume and 4.1% in value compared to 2022, marking the second year of a sharp decline in exports (approximately 14 million tons compared to the peak year of 2021).
According to the announcement in 2022 by the United States Geological Survey, Vietnam’s cement production capacity is around 100 million tons, ranking third in the world. The top 5 countries with the largest cement production capacities in the world are China, India, Vietnam, the United States and Turkey.
Currently, the design capacity of cement plants in Vietnam reaches 120 million tons/year, while the demand for cement is only around 65 million tons, leading to increasingly fierce competition.
Vietnam Cement Corporation (Vicem) said that cement and clinker export prices (FOB Quang Ninh) have decreased significantly since the end of 2022, in which clinker prices have decreased by USD 5-6/ton, cement prices have decreased by USD 9-10/ton and continued to decrease in 2023 due to exporters competing for orders. In addition, domestic clinker exporters have to pay a 10% tax from 1/1/2023.
It is forecasted that in 2024, Vietnam’s cement and clinker exports will continue to face fierce competition because the Chinese real estate market has not recovered, while China is boosting exports to major cement markets in the Philippines and Bangladesh. In addition, the Philippines still applies protectionist policies (anti-dumping duties on cement imported from Vietnam), adding to competition in the Middle East and Southeast Asia.
