By Minh Hue
Fri, January 2, 2026 | 7:06 pm GMT+7
In a remarkable turn of events, the domestic sale of cement producers in Vietnam hit an unprecedented 75 million tons in 2025. This surge contributed to an overall industry total of 112 million tons, surpassing previous records. Export figures also showed a healthy increase, with nearly 37 million tons shipped abroad, illustrating the robust health of Vietnam’s cement sector.
At a cement factory in Vietnam. Photo courtesy of the government’s news portal.
According to data from the Ministry of Construction, the cement industry in Vietnam weathered significant volatility in 2025. Factors such as elevated production costs, rising electricity prices, and various trade defense measures in international markets impacted export activities. Despite these challenges, the sector witnessed a notable recovery in domestic demand, pushing production and sales activities to their most dynamic state in three years.
The total supply of cement during 2025 reached 125 million tons. This surge marked a 16% year-on-year increase in total sales, created by strong growth in both domestic consumption and exports. Domestic consumption alone increased by approximately 12.8% compared to 2024, achieving a record high of over 75 million tons.
Export volumes also showed substantial growth, with nearly 37 million tons shipped—an increase of almost 28% year-on-year—which generated over $1.36 billion in revenue. This rebound can largely be attributed to effective economic policies and significant public investment, which spurred the acceleration of major infrastructure projects throughout the nation.
In stark contrast, the preceding three years had seen subdued domestic cement consumption levels, ranging between 57 and 63 million tons, while exports plummeted to just 29–31 million tons. This downturn negatively impacted the overall performance of the industry, with total sales only surpassing 90 million tons in 2024, 87 million tons in 2023, and 93.6 million tons in 2022.
Despite the growth achieved in 2025, the sector faced challenges due to rising input costs, prompting three rounds of price adjustments in the domestic market. Each increment ranged from VND 50,000 to VND 100,000 (approximately $3.8) per ton, reflecting the needed adaptation to higher production expenses.
Electricity costs became a pressing issue as well; in May 2025, the average retail electricity price rose by 4.8% to over VND 2,204 (about $0.084) per kilowatt-hour. Given that electricity accounts for around 15-17% of production costs in the cement industry, these increases further pressured manufacturers to optimize operations and reduce expenses. Many are now considering investments in waste heat recovery systems or renewable energy solutions as part of their strategy to maintain sustainable production efficiency.
On the export front, a government decision to cut the clinker export tax from 10% to 5%—effective from May 2025 through the end of 2026—proved beneficial for cement producers. This policy has not only lowered costs for companies engaging in international trade but has also enhanced their competitiveness in the global market.