Vietnam's cement production edges higher in June despite sluggish local demand

Vietnam's cement industry saw a 1% uptick in June output to 10.84 million mt, but the production jumped 70% from the corresponding month last year, according to data released by the Cement Information and Database Center under the Vietnam Cement Association on July 15.

The higher output highlights a deepening supply-demand imbalance, as domestic consumption remains subdued, said market participants.

Local producers accounted for 54% of cement consumption in June, while Vicem and foreign-invested firms made up 27% and 19%, respectively, CIDC data showed.

Demand in the southern region continues to be sluggish due to shortages of key materials such as stone, sand, and additives, which are forcing many concrete mixing plants to cut operations. According to market sources, northern brands offering lower prices are also increasing competition in the south.

In regions like the Central Highlands, public investment and construction activity have shown signs of recovery, but supply limitations and cautious government disbursement are still holding back demand. Intense price competition persists across the southwestern market, where players like Vicem Ha Tien, Vissai, and Tan Thang are battling for market share, said market participants.

Vietnam's cement capacity exceeded 122 million mt in 2025, while last year's consumption was only around 95 million mt -- 77% of total production capacity, according to the construction ministry. The oversupply stems from unchecked investment after the 2017 Planning Law removed previous national development guidelines.

To address this, the ministry has proposed a strategic building materials plan to cap total designed capacity at 125 million mt by 2025 and 150 million mt by 2030. Projected growth in 2025 is modest, with consumption expected to rise by just 2%–3%, underscoring the need for careful planning and policy alignment moving forward.

Platts, part of S&P Global Energy, assessed CEMDEX Turkey at $54.50/mt FOB on July 10, unchanged from the previous week.