In its conclusion following an inspection tour to the Vietnam Cement Corporation (Vicem), the Ministry of Finance’s (MOF) inspectors pointed out risks in some investment deals of the biggest domestic cement manufacturer.

The domestic cement industry expects to bounce back in 2024 thanks to the Government's tireless efforts to speed up public investment and implementation of key transport infrastructure projects.

Huge inventories, a stagnant real estate market, and capital constraints are some of the factors heralding a pessimistic outlook for cement businesses in 2023.

After hitting an export volume approximating 46 million tonnes in 2021, the cement sector faces a tough road ahead due to headwinds in exports and slow rebound in pandemic-hit domestic consumption.

VietNamNet Bridge - As the domestic cement supply has exceeded demand, exporting products is the only solution for cement manufacturers.

VietNamNet Bridge – Many sectors have built long-term development plans, but after a period of implementing those plans, they must adjust them to be suitable with reality. 

VietNamNet Bridge - Sanan Angubolkul, Chair of the Thailand-Vietnam Business Association, has called Vietnam the ‘darling of the world’, meaning that it has become quite attractive to foreign investors.

The increasingly heavy pressure from both the overseas and domestic markets has forced many cement manufacturers to think of Merger & Acquisition (M&A) as a solution for their problems.

VietNamNet Bridge - Experts believe that restructuring will take place soon in the cement industry. Under the process, big merger and acquisition (M&A) deals will be made.

VietNamNet Bridge - The Ministry of Construction (MOC) wants to turn cement production into a key industry, but analysts believe it is a bad idea.

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 VietNamNet Bridge – A number of cement plants have been taken off the list of proposed plants in the country’s development plan for the industry, in an effort to “tidy up” the national industry.

 VietNamNet Bridge – Viet Nam's cement production has met domestic demand since 2010 but has surpassed it since 2012 because of declining consumption resulting from economic recession.

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 VietNamNet Bridge – The country's cement market has seen positive results after a long, quiet period, with both domestic cement consumption and exports having increased.

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About 20 percent of Vietnamese cement enterprises have been put on the brink of bankruptcy. The solution they most think of now is to sell themselves to foreign investors who would pump money to clear debts and restructure enterprises.

The frozen real estate market has put big difficulties on the domestic building material industry, but has brought the golden opportunities to foreign groups to take over domestic companies.

With the heavy debts of up to trillions of dong, a lot of cement companies cannot pay foreign debts. As a result, the Ministry of Finance has to come forward and pays for the loans guaranteed by the government.