According to the Ministry of Construction, Vietnam’s cement industry experienced significant volatility last year as production costs remained high, electricity prices increased, and export activities were affected by trade defense measures in multiple overseas markets.

However, a strong recovery in domestic demand combined with a robust rebound in exports made production and sales activity the most dynamic it has been in the past three years.

Total cement supply during the year stood at 125 million tons. Total sale, including domestic sale and exports, surged 16% year-on-year to 112 million tons.

Domestic consumpiton recorded strong growth, up about 12.8% compared to 2024 to over 75 million tons, a record high.

Exports increased by nearly 8 million tons to nearly 37 million tons, up almost 28% and generating over $1.36 billion in revenue.

The double-digit growth in domestic consumption was largely driven by effective economic policies and, in particular, strong public investment. Major infrastructure projects were accelerated nationwide.

It is worth noting that over the previous three years, domestic cement consumption remained subdued at only 57-63 million tons, while exports declined continuously to just 29-31 million tons, negatively affecting the overall industry performance.

Total cement sale exceeded 90 million tons in 2024, 87 million tons in 2023, and 93.6 million tons in 2022.

In 2025, amid strong pressure from rising input costs, the domestic cement market saw three rounds of price adjustments, with each increase ranging from VND50,000 to VND100,000 ($3.8) per ton.

According to industry players, the average retail electricity price increased by 4.8% to over VND2,204 ($0.084) per kWh starting in May 2025, adding further cost pressure on the cement industry, which is highly energy-intensive, particularly in clinker production.

Electricity accounts for approximately 15-17% of production costs, forcing enterprises to cut expenses, optimize operations, and consider investing in waste heat recovery power systems or renewable energy solutions.

Although domestic cement demand has shown signs of recovery, rising electricity costs remain a major challenge, prompting manufacturers to adjust selling prices and upgrade technology to maintain sustainable production efficiency.

On the export front, the government’s decision to reduce the clinker export tax from 10% to 5%, effective from May 2025 through the end of 2026, has provided a significant boost.

This policy has helped cement producers lower costs when participating in international markets and has improved overall export competitiveness.