The Ministry of Constrution has asked three foreign-invested cement producers to export up to 150,000 tons of cement in the second half this year as local supply has outpaced demand, an official said.
Nghi Son, Chinfon Hai Phong and Phuc Son had already pledged to export 30-40 percent of their annual output when they applied for their license, Le Van Toi, director of the ministry's construction materials department, said in an interview published by the Vietnam Economic Times Thursday.
"When local production could not meet demand, they did not have to export. Now that supply has exceeded demand, the Ministry requested them to fulfill their commitment," he said.
Each of the companies would have to export between 100,000 and 150,000 tons of cement in the second half of the year, Toi said, noting that they were required to export half of their output next year and total output by 2012.
These producers all have large mother companies that are experienced in manufacturing and exporting cement, he said. "I think they won't have many difficulties in fulfilling their commitment."
Toi said Vietnam's total cement production is expected to reach 53 million tons this year, which means there would be a surplus of 1.5-2.5 million tons.
The surplus will help keep prices stable but will create tough competition in the market, he said.
He warned that the surplus could reach 10 percent of the total output in coming years if plans were not made soon to adjust production.