Gov’t rules out nine low capacity cement projects

Prime Minister Nguyen Tan Dung has agreed with the Ministry of Construction to cancel nine cement projects with less than 2,500 ton capacity, namely, Ha Tien-Kien Giang, Truong Son-Ro Li, Hop Son, Ngoc Ha, Vinafuji Lao Cai, Thanh Truong, Son Duong, Quang Minh, and Cao Bang.

At the same time, Prime Minister gave the nod to extension of seven projects, namely, He Duong II, My Duc, Thanh Son, Tan Thang, Do Luong, Tan Phu Xuan, and Nam Dong, to after 2015. Only Xuan Thanh 2 Project in Ha Nam Province was listed in the category of cement projects that will be put into operation before 2015.

The Prime Minister entrusted the ministry to coordinate with relevant ministries and departments to closely watch the implementation of cement projects in accordance with adjusted progress plan and ensure future balance in cement supply and demand.

The PM asked the ministry to coordinate with the ministries of Finance, Industry and Trade, Vietnam National Cement Association, and Vietnam Cement Industry Corporation (Vicem) to draw solutions to increase effectiveness in export of cement and reduce losses to local cement producers.

According to Nguyen Tu Thanh, deputy head of Vicem’s Planning and Strategy Department, the country’s cement supply reached about 73 million tons per year by 2013 and met both industrial and civil demand.

However, domestic cement consumption was just around 50 million tons per year, leaving cement inventory at 20 million tons. If annual cement exports were around 10 million tons, there would still be a surplus of 10-13 million tons.

Source: VNA – Translated by Thuy Doan

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