DNVN - In the context that the Vietnamese construction materials industry is facing many difficulties, with production output, consumption and revenue all decreasing, the Prime Minister requested ministries, branches, and People's Committees of provinces and cities to focus on solving difficulties and creating favorable conditions for businesses to invest in the production of construction materials.
Construction materials industry faces many difficulties
Deputy Prime Minister Tran Hong Ha has just signed and issued Directive 28 of the Prime Minister on a number of solutions to remove difficulties and obstacles, promote production and consumption of cement, steel and construction materials.
According to Directive 28, in recent years, the Vietnamese construction materials industry has encountered many difficulties, with production output, consumption and revenue all decreasing, leading to risks affecting the economy and affecting the country's industrialization and modernization process.
In particular, the policy mechanism for sustainable development of the construction materials industry still has a gap compared to reality. Policy responses have not been timely to emerging issues, international commitments in free trade agreements of which Vietnam is a member and rapid developments in production, business and consumption of construction materials products. Policy mechanisms to support construction materials manufacturing enterprises applying science and technology have not been specifically issued.
In recent years, Vietnam's construction materials industry has faced many difficulties.
The cost of coal, FO oil, compressed natural gas (CNG), liquefied petroleum gas (LPG) and electricity is increasing. Raw materials for construction materials, steel input materials, etc. are still facing difficulties, and sometimes are not stable enough for production.
The domestic and export markets for construction materials are facing many difficulties due to the decrease in domestic and global aggregate demand, the broken supply chain, the slow growth of the domestic real estate market, the slow implementation of many construction works and key infrastructure projects, and the postponement or extension of progress. Construction material products are declining due to fierce competition in product prices from major manufacturers in the world, combined with regulations on technical barriers in export markets. The domestic market is facing fierce competition due to the significant increase in imported products in recent times.
In addition, the financial situation is difficult for construction material manufacturing enterprises. Due to the very slow consumption of products recently, many enterprises have had to stop some production lines, leading to cash flow to pay debts to banks and costs of raw materials and fuel for production being very difficult. Many construction material factories, especially cement and construction steel factories, are producing inefficiently and at a loss, leading to bad debt.
Create conditions for businesses to invest in the production of construction materials.
Therefore, the Government's guiding viewpoint is to closely follow reality to promptly respond to emerging issues; develop the construction materials industry in a sustainable manner, meet domestic demand and increase exports. Apply advanced technology to improve product quality. In addition, solutions such as saving resources, developing a reasonable construction materials production network nationwide, and encouraging investment in this field are also emphasized.
The Prime Minister also requested the implementation of a number of key tasks: reforming industry development policies, applying science and technology, expanding markets, and promoting international cooperation. At the same time, adjusting tax policies, strengthening trade defense, and building a development mechanism for the steel and cement industries were also proposed to ensure competitiveness and sustainable development for the Vietnamese construction materials industry.
The Government requested the Ministry of Finance to preside over the drafting of a Decree amending Decree No. 26 on export tax schedules, preferential import tax schedules, list of goods and absolute tax rates, mixed tax rates, and import tax rates outside tariff quotas; study and propose adjustments in the direction of applying export tax rates on cement clinker at appropriate levels to remove current difficulties in product consumption.
The People's Committees of provinces and centrally run cities encourage and facilitate enterprises to invest in the production of domestic construction materials with quality to replace imported construction materials, environmentally friendly, and deeply processed construction materials for export according to current mechanisms and policies. Create conditions for enterprises to invest in grinding stations and cement distribution stations in localities that cannot produce clinker and have sources of additives, taking advantage of ash, slag, and gypsum from thermal power plants.
For construction material enterprises, the Prime Minister suggested innovating, applying modern production technology and management methods, improving productivity, quality, and reducing product costs. Reviewing and cutting production costs for raw materials, coal, oil, gas and electricity. Applying solutions to improve energy efficiency in production, taking advantage of cheap fuel sources from waste to reduce production costs...
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Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/tao-dieu-kien-cho-doanh-nghiep-dau-tu-san-xuat-vat-lieu-xay-dung/20240827042404910
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