This includes domestic consumption of 69-70 million tons, and exports of 32-34 million tonnes.

Chairman of the Vietnam Cement Association Nguyen Quang Cung said that cement demand expanded at higher pace as compared to the gross domestic product (GDP) growth in previous years.

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However, the trend has been reverse in recent times due to a stagnant real estate market as well as slow progress of many infrastructure development projects, he stated.

Cung stated that cement producers will have to face major challenges in 2020, with rising input costs, environmental and technological issues, and increasing wage.

Meanwhile, the Ministry of Construction said that Vietnamese cement would face fierce competition as China and Thailand increase exports. Therefore, domestic firms should study market trends to adjust their production plans, stabilize cement price, and map out long-term business strategies.

The ministry has asked the Ministry of Industry and Trade to direct the Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) to provide sufficient coal, and the Vietnam Electricity to ensure adequate power for cement production activities.

Experts said it is necessary for local firms to renew technologies in order to improve product quality while reducing carbon footprint of the sector.

Currently, many large enterprises are moving to green production by applying technological achievements of the Fourth Industrial Revolution, and saving natural resources.

Source: VNA