Vietnam cancels, halts cement projects over supply surplus

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Ha Tien cement factory in Kien Giang Province, one of nine projects canceled under a new government decision to balance supply and demand. Photo courtesy of VnEconomy

Vietnam's Prime Minister has approved a proposal by the Construction Ministry to stop production at nine cement factories to balance supply and demand, and save natural resources.

The factories, each producing less than 2,500 tons of clinkers a day, include one in Kien Giang Province in the south, five in the northern mountainous province of Lao Cai and three in nearby Cao Bang Province.

Seven planned projects including six in the north and one in the central province of Thua Thien Hue will be delayed until at least 2015, according to a statement sent from the Prime Minister to related authorities April 3.

A VnEconomy report on April 4 said the delayed projects had been chosen by the Vietnam Association of Construction Materials as projects that either had no money or were poorly located in terms of materials and environmental protection strategies.

It said Vietnam's cement factories had a total designed capacity of around 70 million tons in 2012, while demand was around 56 million tons, including eight million for export.

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