Creating a level playing field for construction materials businesses

Circular 10/2024/TT-BXD on quality management of construction material products issued by the Ministry of Construction will officially take effect from December 16.

In the context of material goods facing many difficulties in consumption, manufacturing enterprises facing smuggling, trade fraud and unfair competition from counterfeit goods, the participation of State management agencies is very important.

Many professional associations, construction materials industries and manufacturing enterprises expect Circular 10 to be an important legal basis to eliminate unfair competition in the construction materials market and ensure the quality of construction works right from the stage of controlling input materials.

Associate Professor Dr. Luong Duc Long - General Secretary of the Vietnam Cement Association said that the Vietnamese cement industry has a long history and plays an important role, especially in the current period, when we carry out the industrialization and modernization of the country. However, in the past 2 years, the cement industry has encountered many difficulties. 2023 is the "bottom year" of the Vietnamese cement industry. Although there has been some improvement by October 2024, overall, both 2023 and 2024 are two very difficult years for cement consumption in Vietnam.

The main reason why the cement industry is facing difficulties is not due to technical or production technology problems, because the Vietnamese cement industry has a fairly high level of technology and very good production capacity, leading in the ASEAN region and Asia. Among the influencing factors, the issue of product quality management is also a factor causing difficulties for the industry.

Currently, there are many manufacturers who do not have enough equipment and human resources but still produce substandard cement products, especially in the Southern region. This causes unfair competition, disrupts the market and affects reputable cement manufacturers, negatively affecting the industry.

Recently, the Ministry of Construction issued a Circular on the management of construction material quality, which clearly stipulates the management of quality from the production and circulation stages to the introduction of materials into construction works and import and export. Cement enterprises expect Circular 10 to help the domestic cement market become more transparent, minimizing unfair competition from unprofessional manufacturers - Mr. Tran Duc Long shared.

Analyzing the unfair competition of the construction glass industry, Mr. Nguyen Tran Tuan Nghia - Chairman of the Vietnam Glass Association said that in recent years, member businesses in the glass industry have encountered many difficulties, high inventories, broken cash flow and especially fierce competition from imported glass products of unknown origin and poor quality.

These products are mainly from many Chinese factories, exported to ASEAN countries such as Malaysia, Indonesia and then flooded into Vietnam without quality control. This leads to high inventory, reduced production capacity, and even some businesses cannot withstand the pressure and have to reduce production or sell below cost.

Some factories have had to stop production, such as Chu Lai Glass Factory, Hai Phong Glass Factory and Binh Duong Glass Factory, which are currently operating at very low capacity, around 60-70%. Although they have reduced capacity, they still cannot consume all their products, causing many difficulties for businesses in the industry.

In the ASEAN region, many countries have established strict technical barriers to control the quality of imported glass. However, Vietnam currently does not have clear standards to control the quality of glass products, although this is a highly safe product. Without strict quality control, glass products can cause serious incidents, such as the glass breakage during Typhoon Yagi that caused the entire building to break and cause danger. Although there has been no in-depth analysis of the specific causes of these incidents, glass quality control is necessary.

“Therefore, the Ministry of Construction's issuance of Circular 10 is a very timely action because it will help create a fair playing field for construction material manufacturing enterprises, helping to clearly distinguish between quality products and poor quality products, thereby ensuring healthy competition in the industry,” Mr. Nghia affirmed.

At the same time, this is also an opportunity for construction material manufacturing enterprises in general, and the glass industry in particular, to improve product quality and protect consumers from unsafe products. In particular, the application of Circular 10 will be an important step to remove difficulties for enterprises, promote sustainable development of the glass industry and improve the quality of construction works.

Sharing the same view, Chairman of the Vietnam Association of Building Materials Tong Van Nga also said that the business community in this field highly appreciates the regulations in Circular 10. Accordingly, businesses with capacity and good quality management systems will have an advantage in product production and consumption.

Enterprises with poor capacity and quality management systems will have goals to try to improve if they want to consume more products. Enterprises that produce poor quality construction materials or deliberately put on the market products that do not meet standards and regulations will be handled according to the law.

Notably, the legal corridor of Circular 10 also helps to control imported construction materials more closely, trace the origin and factory where imported construction materials are produced. Thereby helping to reduce poor quality construction materials, dumping on the market, weakening the consumption of domestically produced products and goods.

According to Mr. Tong Van Nga, many other countries in the world have been doing this for a long time, very carefully controlling the quality of products and construction materials imported into their country. Vietnam also needs to strengthen this measure to ensure the quality of construction materials as well as the quality of construction works to be more sustainable and beautiful.

According to VNA

Source: https://doanhnghiepvn.vn/doanh-nhan/tao-san-choi-binh-dang-cho-doanh-nghiep-nganh-vat-lieu-xay-dung/20241205083513804