According to the Vietnam Cement Industry Corporation, many cement companies are running at a loss and facing high inventory since the beginning of the year, some even having wound up manufacturing and others at risk of bankruptcy.
In the first five months of the year, cement production reached around 19 million tonnes, down by 16.8 per cent compared to the same period last year, while consumption was at 19 million tonnes, down by 7.8 per cent over the same period last year. However, manufacturing rose by 10 per cent year-on-year.
Cement companies have been struggling after coal and power prices rose by 19 per cent and oil price surged 40 per cent. Moreover, most cement companies have low owner equity; hence their manufacturing depends on loans.
Recently, the Ministry of Finance set up 16 inspection teams to check 17 cement factories which used government ensured loans.
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