Vietnam’s cement industry is facing an oversupply crisis that apparently evolved because inferior Chinese equipment and technology is being used in production. Rotary cement kilns imported from China over the past few years make huge volumes but consume more energy and materials than western counterparts.
As a result, production tripled while demand doubled — and domestic manufacturers are selling below cost. Exacerbating the problem: Most cement is made so far north of Vietnam’s infrastructure needs that transportation sometimes accounts for nearly half of retail prices.
The lesson for Vietnam may be an opportunity for American suppliers of cement making equipment.
More on Vietnam’s cement lesson