Vietnam’s cement industry has emerged as a critical sector in the nation’s industrial development, driven by rapid urbanisation and infrastructure expansion. As one of the world’s largest cement producers, Vietnam benefits from abundant raw materials and a growing domestic and regional market. However, the sector faces challenges such as overcapacity and fluctuating global demand, which have created a highly competitive environment.

The domestic market remains a key driver of cement consumption, supported by government-led infrastructure projects and housing developments. It also exports huge volumes of cement with major export markets including Taiwan, the Philippines, and Bangladesh, but rising trade barriers and stricter environmental regulations have added pressure to maintain competitiveness abroad.

Sustainability is becoming a priority, with producers increasingly adopting green technologies to reduce emissions and energy consumption. However, balancing environmental goals with profitability remains a significant challenge for cement manufacturers in the country.

Vietnam’s cement industry in numbers

Vietnam’s cement industry is projected to grow at an annual rate of 3.2 percent, reaching a market value of US$3.88 billion in 2024. The sector’s medium to long-term growth trajectory remains robust, with steady expansion expected over the next four quarters, according to a report from Research and Markets.

The report suggests that the growth momentum is likely to persist through the forecast period, achieving a compound annual growth rate of 3.3 percent between 2024 and 2028. Cement output in Vietnam is anticipated to rise from US$3.76 billion in 2023 to US$4.41 billion by 2028, supported by increased domestic consumption and export opportunities.

Vietnam’s cement exports

Major export destinations for cement made in Vietnam include Taiwan, the Philippines, and Bangladesh. However, challenges such as increased export taxes and anti-dumping measures in certain markets have impacted export volumes in recent years.

Vietnam cement exports, October vs. September 2024

	October	September	Change	YTD
Total	107,318,270	74,940,538	43.20%	967,972,011
Philippines	32,874,767	18,377,654	78.88%	265,608,377
Bangladesh	9,959,700	13,795,897	-27.81%	156,734,995
Malaysia	7,632,340	3,633,352	110.06%	45,644,492
Taiwan	4,068,470	4,341,298	-6.28%	44,025,324
Australia	3,552,446	1,501,236	136.63%	22,231,212
Peru	1,651,853	1,906,469	-13.36%	13,848,537
Chile	1,559,280	0	0.00%	9,405,040
Cambodia	326,737	425,402	-23.19%	3,560,524
Laos	359,362	188,787	90.35%	2,237,853
China	0	0	0.00%	1,572,297
Angola	0	0	0.00%	1,521,188
Indonesia	0	0	0.00%	23,000
Other	45,333,315	30,770,443	47.33%	401,559,172

Source: Vietnam Exports Tracker

Vietnam’s cement, lime, plaster production

Vietnam’s industrial production index for cement, lime, and plaster experienced notable month-on-month growth but faced challenges in annual and cumulative performance. In October 2024, the index increased by 10.5 percent compared to September 2024, indicating strong short-term recovery in production, according to Vietnam’s Industrial Production Index.

On a year-on-year basis, October 2024 showed a modest growth of 4.3 percent compared to the same month in 2023. However, the year-to-date performance from January to October 2024 declined by 1.5 percent compared to the corresponding period in 2023, reflecting broader challenges in the industry.

The mixed trends highlight the sector’s resilience in addressing immediate market demand while grappling with long-term issues, including overcapacity, fluctuating demand, and export market pressures.

Vietnam’s cement products production

Vietnam’s industrial production index for concrete and products derived from cement and plaster demonstrated consistent growth. October’s index rose by 3.2 percent compared to September, reflecting steady month-on-month expansion.

On a year-on-year basis, October 2024 saw a 4.2 percent increase compared to October 2023, indicating moderate annual growth. Over the first ten months of 2024, the index recorded a cumulative rise of 7.6 percent compared to the same period in 2023, underscoring robust year-to-date performance.

Domestic cement firms in Vietnam

Vietnam’s cement industry comprises several key domestic players, each contributing significantly to both local and international markets.

Vietnam National Cement Corporation (VICEM)

VICEM is the largest state-owned enterprise in the sector, holding approximately 36 percent of domestic market consumption. It oversees a network of subsidiaries, making it a dominant force in the production and distribution of cement across Vietnam.

VICEM Ha Tien Cement Joint Stock Company

A leading subsidiary of VICEM, this company commands a 10.4 percent market share. It is recognised for its high production capacity and extensive presence in southern Vietnam, serving both urban and rural construction demands.

VICEM Hoang Thach Cement Company Limited

This major player under the VICEM umbrella is known for its advanced production facilities. The company plays a crucial role in meeting regional construction material needs in northern Vietnam.

VICEM But Son Cement Joint Stock Company

With a strong presence in the central and northern markets, this company leverages modern technologies to produce high-quality cement. It maintains competitive pricing, making it a preferred choice for various projects.

VICEM Hoang Mai Cement Joint Stock Company

Another VICEM subsidiary, this company focuses on serving local and export markets. Its production facilities are strategically located to ensure efficient distribution across the region.

FiCO Tay Ninh Cement Joint Stock Company

FiCO is a prominent private enterprise commanding over 12 percent of the regional market share. Its annual supply of nearly 2 million tonnes of cement supports major infrastructure and real estate projects.

The Vissai Cement Group

This group has rapidly expanded its operations through mergers and acquisitions, boosting its total production capacity to over 11 million tonnes annually. It is a key exporter, supplying cement and clinker to various international markets.

Bim Son Cement Joint Stock Company

A significant producer with a strong distribution network across Vietnam, Bim Son is known for its consistent product quality. The company caters to both domestic construction projects and export demands.

Thai Binh Cement Joint Stock Company

Specialising in white cement production, Thai Binh has a factory capacity of 50,000 tonnes of clinker and 60,000 tonnes of white cement annually. Its high-quality white cement is widely used for decorative and architectural purposes.

Phu Tho Cement Joint Stock Company

Phu Tho produces primarily PC30 cement with an annual output of 20,000 tonnes. The company plays a niche role in supplying smaller-scale construction projects and regional development initiatives.

Foreign cement makers in Vietnam

Vietnam’s cement industry features significant participation from foreign enterprises, contributing to its growth and competitiveness. Notable foreign cement firms operating in Vietnam include:

Siam City Cement (Vietnam) Limited (INSEE Vietnam)

A subsidiary of Thailand’s Siam City Cement Public Company Limited (SCCC), INSEE Vietnam operates five production sites and a head office in Ho Chi Minh City. The company offers a diverse range of products, including cement, construction mortar, and waste management services under the brand INSEE Ecocycle, with a strong focus on sustainability and innovation.

Nghi Son Cement Corporation (NSCC)

Established in 1995, NSCC is a joint venture between Vietnam National Cement Corporation (Vicem) and Japanese firms Taiheiyo Cement (TCC) and Mitsubishi Materials (MMC). Operating a factory with a capacity of 4.3 million tonnes annually, NSCC is recognised for its high-quality products and a well-established distribution network across Vietnam.

Chinfon Cement Corporation

Founded in 1992, Chinfon Cement is a joint venture between Taiwanese investors and Vietnamese partners. With a production capacity of 3.9 million tonnes per year, the company serves both domestic and international markets, known for its operational efficiency and contribution to Vietnam’s industrial growth.

Vietnam’s main cement products

Vietnam produces a wide range of cement products to meet domestic and international demand, catering to diverse construction needs.

Portland Cement

Portland cement is the most widely produced type in Vietnam, used extensively for general construction projects. Known for its durability and strength, it is the primary choice for residential buildings, commercial structures, and large-scale infrastructure.

Blended Cement

Blended cement incorporates additives such as fly ash, slag, or limestone to improve performance and sustainability. It is commonly used in major infrastructure projects, including bridges, highways, and dams, where durability and environmental benefits are key.

Specialty Cement

Specialty cement is designed for specific applications, such as sulphate-resistant cement for marine environments or white cement for decorative and architectural purposes. These products address niche construction needs and are increasingly sought after for specialised projects.

Vietnam cement industry regulations

Vietnam’s cement industry operates under a framework of regulations aimed at ensuring sustainable development, environmental protection, and alignment with national growth strategies. Key regulatory aspects include:

Environmental Standards

Vietnam’s Ministry of Natural Resources and Environment enforces strict environmental regulations under the National Technical Regulation on Emission of Cement Manufacturing Industry (QCVN 23:2009/BTNMT). These guidelines mandate permissible emission limits and require regular monitoring to minimise the environmental impact of cement production.

Building Material Development Strategy

The government’s building material development strategy for 2021–2030, with a vision towards 2050, emphasises modernising production technologies. The strategy prioritises reducing greenhouse gas emissions, promoting alternative materials, and improving sustainability across the cement sector.

Emission Reduction Initiatives

To align with global standards, Vietnam’s cement industry is encouraged to adopt measures like reducing clinker content, enhancing energy efficiency, and using waste-derived fuels. These initiatives aim to lower carbon dioxide emissions per tonne of cement, ensuring compliance with environmental goals while supporting sustainable growth.