Vietnam Deal Cemented

Taiwan’s Lucky Cement Corp. has formed a joint venture to build a $265 million cement plant in northern Vietnam, the state-run Vietnam News reported.

Vietnam’s booming construction industry has outpaced domestic output of cement needed for new office buildings and infrastructure projects. Demand for cement reached 6.5 million tons last year, but local companies could meet only two-thirds of that amount.

The factory, in which Lucky will hold a 65 percent stake, will be built in the Hai Hung province east of Hanoi and will produce 1.8 million tons of cement annually.

Hai Hung Cement Factory and Industrial Commercial Bank, both of Vietnam, are Lucky’s partners in the venture.

The project must be authorized by Prime Minister Vo Van Kiet due to its large size.

Vietnam already has four foreign joint ventures for cement production, including a $288 million plant being built by the Ching Fong Group of Taiwan in the northern port of Haiphong.