Vietnam National Cement Corporation (Vicem), the biggest Vietnamese cement producer, has signed deals with two Philippine firms to export six million tons of cement and clinker over a three-year (2023-2025) period.
The agreements were signed in Manila Tuesday on the sidelines of an official visit to the Philippines by National Assembly Chairman Vuong Dinh Hue.
The export deals were struck with Fenix Ceza International Inc. and Gold Falcon Trading Corporation.
Senior officials from the Philippines informed Hue that the country was focused on boosting the economy by investing heavily in infrastructure, which accounted for 12% of the GDP growth in the third quarter of this year. As a result, the Philippines has high demand for construction materials, particularly cement, they said.
Vicem now runs 10 cement factories comprising 16 production lines, with an annual capacity of 21 million tons of clinker and 25 million tons of cement. Its sales volume reaches 30 million tons of products per year, accounting for 33% of the domestic market and 23% of the export market.
The cement market in Vietnam has experienced a glut recently with the total supply of 120.7 million tons nearly double the total demand of 64.5-65.5 million tons. The Philippines is a key destination with the annual demand of 15-17 million tons, of which Vietnam can provide seven million tons.
Vietnam earned $1.1 billion from exporting 24.75 million tons of cement and clinker in the first three quarters of this year, down 25.6% year-on-year in volume and 13.7% year-on-year in value, according to the Ministry of Construction's Building Materials Department.