(Construction) - Positive signal when the global economy is recovering, growing strongly back. Vietnam’s economy hopes to start early, recovery pace depends on vaccination progress, efficiency measures after intervalation, support and packages.

Export is currently a channel to solve oversupply for the cement market in Vietnam.

A special solution strongly directed by the Government is to remove difficulties and accelerate disbursement of public investment capital. This is considered an important "key" to help the economy recover from the gap. If public investment increases by 1%, GDP will increase by 0.06 percentage points, many industries will benefit.

Receiving a lot of positive information, expecting the recovery of the economy and measures to accelerate the disbursement of public investment capital, industry groups are forecasted to recover soon such as construction, real estate, production of building materials, cement...

Cement is the "bread" of the Construction industry, an important raw material in construction. That means when construction investment increases, public investment increases, cement consumption increases and vice versa.

Reporting to the Government at the regular meeting of the Government in August 2021, the Ministry of Planning and Investment said: The estimated disbursement of public investment by August 31 is 187,285.01 billion VND, reaching 40.6% of the Prime Minister's capital plan delivery, down 5.81% over the same period in 2020 (46.41%). In which, domestic capital reached 44.7% (the same period in 2020 was 50.02%), foreign capital reached 7.94% (the same period in 2020 reached 21.26%).

The results of cement consumption in the first 8 months of 2021 reached 70.77 million tons, up 4% over the same period in 2020. In which, consumption in the domestic market reached 43.54 million tons, down 5% compared to the same period in 2020 the same period; export output was estimated at 27.23 million tons, up 12% over the same period. When public investment in 8 months decreased by 5.81% over the same period, construction investment decreased due to the heavy impact of the pandemic, the only "float" to help the Cement industry maintain its growth momentum was from exports.

In the fourth quarter of 2021 and the following years, the cement industry is expected to continue to grow in both domestic and export markets. Cement stock market has just bounced up quickly when receiving positive information from the market, being hunted by many investors, even cement stocks have increased beyond the actual value of enterprises.

A question arises: If the Government's solutions to overcome difficulties are effectively implemented, the disbursement of public investment capital in 2021 reaches the plan assigned by the Government, and construction investment is accelerated, will it be consumed 105 million tons of cement in the domestic market? The answer is definitely no, because the cement market is oversupplied with over 30 million tons, the total capacity of Vietnam's cement factories is now 105 million tons.

In the following years, public investment and construction investment increased, cement consumption increased, and the cement production line allowed for investment also increased. The lines that have been approved by the Prime Minister to invest by 2030 are 24 lines, with a total capacity of 36.31 million tons. It is expected that by 2030, the country will have 109 cement production lines with a total capacity of 140.35 million tons/year. That means that the cement market always has a very large supply, there is no "fever" of lack of cement. Is there an uneven distribution between regions because many cement factories are concentrated in the North and Central, and few in the South. Expectations of sudden growth from the Cement industry are very low.

In the case that public investment is disbursed strongly, in the period of 2022 and 2023, only cement companies will really benefit from infrastructure investment projects, after the works using public capital complete land clearance equal.

Thus, actively promoting consumption, brand development as well as seeking to expand the market is the solution cement enterprises actively implement. Can't just wait for the disbursement of public investment capital!

Cement enterprises are actively applying the achievements of the 4th scientific and technological revolution in production and business, digitizing the consumption chain and logistics; digitizing electronic document management; digitizing management manage all production activities of enterprises... Although public investment has increased, construction investment has increased, the Cement industry is still oversupplied and competitive under pressure. In order to survive and develop, businesses must continue to innovate technology, promote creativity, improve productivity, and at the same time protect the environment, towards green and sustainable development...