June 19, 2025
Vietnam’s cement sales drop 22% MOM in May to 6.91 mil mt
HIGHLIGHTS
Shortage of sand, stone and early seasonal rainfall lead to decline
Production also falls in May, down 25% from April
Vietnamese cement suppliers sold 6.91 million mt in the domestic market in May, a decline of 22% from April, according to data released by the Cement Information and Database Center under the Vietnam Cement Association on June 17.
The sales volume rose 32% from a year earlier, reflecting the government's ongoing push to accelerate public investment disbursement, CIDC said.
CIDC attributed the month-over-month decline primarily to several factors: a shortage of sand supply in northern Vietnam, limited access to construction-grade stone and early seasonal rainfall in the central region, as well as procedural delays stemming from administrative restructuring related to ongoing provincial merger initiatives.
Vietnam's cement production also fell in May, dropping 25% from April to 10.79 million mt. However, output surged more than 51% year over year. The monthly decline was largely due to high inventory levels, as factories had been operating at full capacity since the beginning of the year to meet both domestic and export demand, CIDC said.
Vietnam exported 14.14 million mt of clinker and cement in the first five months of 2025, up 5.2% year over year, the latest customs data showed.
Although the government has continued to prioritize public investment disbursement to drive demand for construction materials, the impact has been limited. This is partly due to weak coordination in implementing new policies, CIDC said. The second quarter of 2025 marks a major period of transition in Vietnam's administrative and fiscal landscape, including mergers of ministries and provinces, as well as changes to tax policies and payment systems, posing challenges for cement companies in planning sales and consumption targets.
Furthermore, production costs remain high. As of May 10, Vietnam increased its average electricity price by 4.89% to Dong 2,204.07 ($0.08)/kWh (excluding value-added tax). The price hike has added further financial pressure on cement producers, who are already contending with elevated costs for electricity, raw materials, gasoline and oil, according to CIDC.
Platts, part of S&P Global Energy, assessed CEMDEX Turkey at $55/mt FOB on June 12, up $1/mt week over week.
