Posted on 26 Aug 2008
The requirement also calls for a readjustment to current
cement prices while also aiming to guarantee stable production and strong
development for the country’s cement industry.
In the past, the cement industry faced many difficulties in
finding investment capital for large projects. The industry’s construction
investment capital is mostly sourced from high interest rate loans from
commercial banks.
In addition, cement production costs have been rising
rapidly due to price surges for input material, including coal, clinker, oil
and petroleum.
After the cement group drafts the plan, the ministry will
consider the plan before submitting it to the Prime Minister for approval.
At present, the average wholesale cement price is VND850,000
to 900,000 per tonne (US$52-55), while, the retail price in the market fetches
VND940,000 to 1.03 million per tonne ($57-62).
Spokesman for the Viet Nam Cement Corp, Tran Quang Tuan,
said the cement price was expected to rise by 15 per cent twice in August and
November this year.
By the end of the year, six additional cement factories will
be put into operation with a capacity of 6.61 million tonnes, while 17 more
factories are set to begin work throughout 2009. With total cement production
capacity of 56.2 million nationwide, the country will have adequate cement
supplies, according to the ministry.
