Vietnam's cement industry is growing at a rapid rate as local and foreign investors build new cement plants anticipating a construction boom on the back of strong economic growth forecasted for the next decade. The country boasts one of the fastest growing cement markets in Asia with over 30Mt of new annual cement production capacity due to be added by 2011. Some industry observers expect the cement industry to soon enter a period of overcapacity as all the new plants are completed. This may be followed by a period of consolidation, leaving a smaller number of key players controlling the industry in future. Aidan Lynam, general director of Holcim (Vietnam) Ltd commented "From a demand point of view the cement market is buoyant. There is a lot of construction. There is a steady demand growth, 10 percent to 12 percent annually today, down from 18 percent to 19 percent previously. Demand growth is levelling out above 10 percent. It started from a small base and there has been huge growth. In 2000 to 2001 something switched on. There was an initial surge.
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