A sharp rise in production, domestic sales, and exports in the first half of 2025 is breathing new life into Vietnam’s cement industry, long hampered by chronic oversupply and volatile input costs.
Output reached 49.8 million tones—an 18% year-on-year increase—while total consumption climbed 14% to 54 million tones, according to the Ministry of Construction’s Department of Science, Technology, Environment and Building Materials. Domestic sales led the rebound at 37.5 million tones, up 18%, while exports rose 6% to 17 million tones, valued at roughly USD 635 million. This turnaround is underpinned not only by infrastructure demand but also by operational shifts toward circular economy models that reduce reliance on traditional raw materials and fossil fuels.
The sector’s leading producers are increasingly leveraging industrial by-products and waste-to-energy solutions to offset input volatility. Vicem Ha Tien 1, for instance, integrated over 213,000 tones of waste as alternative fuel in the first half of 2025, alongside ash from power plants and slag from metallurgy. This strategy cut fuel costs by USD 5.3 million and raised alternative fuel use to over 30% of clinker production energy. Xuan Thanh Cement, meanwhile, uses waste-heat recovery systems across its three lines to generate nearly 50 MW, trimming electricity consumption by 30% and saving about USD 4 million annually.
These circular economy measures are not just cost-control tactics—they also reduce emissions and align with emerging regulatory preferences, as the Ministry of Construction moves to phase out small, high-pollution lines in favor of cleaner, resource-efficient production.
The government’s recent cut to the cement export tax—from 10% to 5%—has strengthened overseas competitiveness, securing long-term supply contracts to markets such as Singapore and the US.
