Efforts to remove difficulties and stimulate production of cement, steel and construction materials

Việt NamViệt Nam15/06/2024

Prime Minister Pham Minh Chinh chaired a conference to remove difficulties and promote production and consumption of cement, steel and construction materials. (Photo: Duong Giang/VNA)
Prime Minister Pham Minh Chinh chaired a conference to remove difficulties and promote production and consumption of cement, steel and construction materials.

On the morning of June 15, Prime Minister Pham Minh Chinh chaired an online conference on removing difficulties and promoting production and consumption of cement, steel and construction materials.

The conference was held online between the Government headquarters and the People's Committees of 32 provinces and centrally-run cities.

Attending the conference were Deputy Prime Ministers Le Minh Khai and Tran Hong Ha; leaders of central ministries and branches; leaders of provinces and cities; associations, unions, corporations, general companies and enterprises in the fields of construction materials, cement and steel.

Speaking at the opening of the conference, Prime Minister Pham Minh Chinh said that cement, steel, and construction materials are essential materials for building technical infrastructure, civil and industrial works, airports, ports, defense and security works; urban and rural infrastructure systems, etc.

Sustainable development of the cement, steel and construction materials industry in our country is one of the important issues that the Government and the Prime Minister always pay attention to. There have been many policies and strategies to promote development to meet domestic consumption and export needs.

With the policies of the Government and the Prime Minister, the participation of all levels, sectors and localities; the participation in investment in production and business of enterprises, the cement, steel and construction materials industry has had remarkable development in the past 10 years.

Of which, cement has been invested with a total capacity of 122 million tons/year, ranking first in the world. The total estimated investment at current value is up to 500,000 billion VND.

Tiles have been invested with a total capacity of 831 million m2/year. The total investment is estimated at current value of about 100,000 billion VND.

Sanitary ware has been invested with a total capacity of 26 million products/year. The total estimated investment at current value is about 25,000 billion VND.

Glass has been invested with a total capacity of 5,900 tons of glass/day, ranking in the top 5 countries with the largest output in Southeast Asia. The total investment is estimated at current value of about 50,000 billion VND.

Unburnt building materials have been invested with a total capacity of 12 billion bricks/year. The total estimated investment at current value is about 12,500 billion VND.

The steel industry in the period 2011-2022 has a high growth rate, reaching an average of 14.25%. Steel output in 2022 increased 5 times compared to 2011. Especially in the period 2016-2022, the steel industry achieved a very high growth rate with an average of 27.11%/year.

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Prime Minister Pham Minh Chinh speaks at the conference to promote production and consumption of cement, steel and construction materials.

However, according to the Prime Minister, in recent years, due to the impact of many unfavorable factors at home and abroad, along with the fact that the real estate market has not recovered, the production of cement, steel and construction materials has declined.

Total cement and clinker production output in 2023 will only reach 92.9 million tons. The average operating line in the industry will only reach 75% of the total design capacity. Total consumption output in 2023 will reach 87.8 million tons (equal to 88% compared to 2022).

In 2023, construction steel production will reach 10.655 million tons (down 12.2% compared to 2022), consumption will reach 10.905 million tons (down 11.2% compared to 2022)...

The Prime Minister said the Government organized this conference to find solutions to remove difficulties and obstacles in order to promote the production and consumption of cement, steel and construction materials.

Therefore, the Prime Minister requested the delegates attending the conference to exchange, discuss and share with a spirit of frankness and responsibility, focusing on assessing and carefully analyzing the production and consumption of cement, steel and construction materials in recent times; clarifying the reasons for the large decline in consumption of cement, steel and construction materials from 2023 to present, failing to reach the set target.

Emphasizing that our country is building a socialist-oriented market economy, the cement, steel and construction materials industries must develop according to market rules, but with State management, the Prime Minister asked delegates to propose key and breakthrough tasks and solutions to remove difficulties and obstacles, in order to promote the production and consumption of cement, steel and construction materials.

Clearly define the tasks of the Government, ministries, branches, localities, businesses and people; the specific roles and responsibilities of all levels and branches in resolving bottlenecks; what policies and mechanisms are needed to encourage the production and consumption of cement, steel and construction materials; what changes in leadership and direction methods are needed...

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The Prime Minister asked delegates to propose key and breakthrough tasks and solutions to remove difficulties and obstacles.

The Prime Minister raised the issue that, in the context that the whole country is focusing on promoting public investment, building social housing, building new rural areas, eliminating temporary and dilapidated houses and other important projects, should there be a mechanism to promote consumption and stimulate the production of cement, steel and construction materials?

According to the Ministry of Construction, in the past 10 years, the total production capacity of key construction materials in Vietnam has grown to about 120 million tons of cement, 830 million square meters of tiles, 26 million sanitary ceramic products, 330 million square meters of construction glass, 20 billion fired clay bricks, and 12 billion unfired bricks (standard).

The quality of Vietnamese construction materials is guaranteed to meet international standards. The technological level, production organization, business, and environment of Vietnam's construction materials industry are among the top in ASEAN countries.

The total annual revenue value of the construction materials industry excluding construction steel is estimated at about 600 trillion VND (accounting for nearly 6% of national GDP).

However, in recent years, the construction materials industry in our country has encountered many difficulties, with both consumption and revenue decreasing, leading to stagnation in production and business activities of enterprises, job losses for many workers, and affecting the socio-economic development of the country.

TB (according to VNA)

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