Construction resumption boosts SE Asia aggregates markets
May 11, 2022
The resumption of construction projects and new investments is set to improve prospects for quarrying and aggregates in the South East Asian countries of Vietnam, Thailand and the Philippines in 2022.
Construction – and associated demand for aggregates - has been impacted across all three nations over the last two years due to COVID lockdowns reducing mobility and building activity.
Vietnam saw 20% less construction in 2020 and the first half of 2021, while there was a 13% reduction in the demand for cement in the Philippines, according to Alexander Baart, regional director South East Asia for wet processing equipment manufacturer CDE. He says the good news is that public and larger projects are now resuming across the South East Asia region.
“From today’s perspective there are reasons to believe that after Lunar New Year [February 1] in Thailand and Vietnam the volumes will grow back to pre-COVID levels,” says Baart. “In the Philippines we already foresee a 6% higher demand of cement compared to 2019.”
Baart adds that a growth of 6% is expected this year in Thailand’s construction business, while in Vietnam it is expected to be between 3 and 5%. In both countries the driving force is the resumption of new projects.
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