How to prevent overproduction?
In late 2009, after reviewing strategy for the cement industry, the Ministry of Construction said some measures need to be taken immediately to solve the overproduction problem. The Ministry has requested that local authorities not license new cement projects. The Ministry specifically asked the Government to order the stop of some projects that have been slowly implemented. However, despite warnings about overproduction, more cement projects have been licensed by local authorities. On July 10, 2010, the construction of the Thanh My Cement Plant, financed by Xuan Thanh Group, was kicked off in Quang Nam province. The project, capitalized at four trillion dong, is expected to be completed within 24 months. Once operational, the plant will have the capacity to produce two million tons annually. In early July, the Thua Thien-Hue Province People’s Committee handed over the investment license for Long Tho II Cement Plant to Song Hong Corporation. It will be a furnace cement plant in Huong T
