Company Insight

- Vicem Ha Tien, thanks to the current reputation and market share in the South, can take advantage of the decision to maintain public investments high with an expected increase of 1.4% YoY in 2021. The North-South highway or the Tan Son Nhat airport expansion project can help Ha Tien stay ahead of other competitors to run its cement plants and grinding stations in 2021 at full capacity. Vicem Ha Tien is approved to exploit about 8 mn million tons of limestone a year and thereby having a decent control of the material which is the main ingredient for cement production. As a result, the company's profit margin is better than those of other players that use clinker as input. Furthermore, the government also limits limestone mining in the South at 22.5 million tons a year, making the sector entry barriers more difficult for rivals to increase their cement capacity.