Bernama reported that Vietnam's domestic cement market will remain sluggish in 2012 due to the continuing difficulties in production and business in 2011.

A member of the National Assembly's Economic Committee Mr Tran Du Lich said that in 2012, the building material market would continue its slow growth due to the frozen property market, tightening credit policies and cuts in public construction project investment.

The Vietnam Cement Association estimated that the domestic market would need 55 to 56.5 million tonnes of cement and 4 to 4.5 million tonnes of clinker and cement for export in 2012.

Experts believe that the industry would still experience many difficulties in production and business due to high input costs related to electricity and coal prices. The domestic cement market has retained large stocks with capacity hitting 60 million tonnes on a demand of 50 million in 2011.

Mr Nguyen Tran Nam deputy minister of construction said that production costs had been driven up, increasing the retail price of cement. He added that the industry needs modern technology to increase production and lower operational and logistical costs.

While, Mr Tran Van Huynh chairman of the Vietnam Building Material Association said that the government and ministries should limit licensing wasteful cement factories with small capacity of between 350,000 to 600,000 tonnes per year.

Mr Nam said that the Vietnam Cement Industry Corporation should link with JVs to manage demand and supply on a monthly basis.

He added that the ministry of construction called on the ministry of industry and trade and the market watch team to adjust selling prices for electricity, coal and petrol while ensuring sufficient supply towards the cement industry to ensure market stability.

(Sourced from www.bernama.com)