After two challenging years of oversupply and sluggish domestic demand, Vietnam’s cement industry is showing strong signs of recovery in 2025, fueled by accelerated public investment in infrastructure and a sharp decline in input costs.
According to the Ministry of Construction, the sector recorded robust performance in the first half of the year, with cement output surging 18% to 49.8 million tonnes and total sales climbing 14% to 54 million tonnes. Domestic consumption rebounded sharply, rising 18% to 37.5 million tonnes, while exports grew 6% to 17 million tonnes—driven by a 19% increase in clinker shipments.
Export revenue reached USD 635 million, up 1.7% year-on-year, with key markets including the Philippines, the United States, Singapore, and Malaysia. Despite the uptick, export prices remain under pressure due to intense global competition, prompting producers to maintain pricing levels from late 2024 to secure contracts.
Falling coal prices have significantly improved profit margins across the industry. Imported coal averaged USD 98.6 per tonne—down 22.6% compared to the same period last year. However, rising electricity costs, up 4.8% since May 10, continue to challenge producers.
Several major players posted impressive profit growth:
- VICEM Ha Tien: VND 112.3 billion in after-tax profit, a 2.45x increase year-on-year
- VICEM Bim Son: Nearly VND 64.2 billion, up 150%
- VICEM But Son: VND 12.4 billion
Growth Drivers and Strategic Outlook
Nguyen Van Thang, Director of construction services firm Gemtec, emphasized that public investment and a gradual rebound in the construction sector will remain the primary growth engines for the cement industry in 2025.
Export prospects for the remainder of the year hinge on demand from South and Southeast Asia, as well as the evolving landscape of trade protectionism and transport costs.
Industry expert Pham Ngoc Trung urged producers to focus on product restructuring and energy conversion. “Reducing clinker proportions, producing high-added-value cement, and adopting alternative energy sources will lower costs and create sustainable competitive advantages,” he said.
FPT Securities projects domestic cement demand to grow at an annual rate of 2.38% from 2024 to 2039, supported by positive trends in housing construction. However, export growth may remain subdued due to weak demand from China and rising global protectionist measures.
Vietnam currently operates approximately 90 cement production lines, with a combined annual capacity of 106 million tonnes.
