Focus on removing difficulties, promoting consumption of cement, steel and construction materials

On the morning of June 15, Prime Minister Pham Minh Chinh chaired a national online conference to discuss solutions to remove difficulties and promote the production and consumption of cement, steel and construction materials.

Prime Minister Pham Minh Chinh chaired a conference to remove difficulties and promote production and consumption of cement, steel and construction materials.

Attending the conference at the Government Headquarters were Deputy Prime Ministers Le Minh Khai and Tran Hong Ha; and representatives of leaders of central ministries and branches.

At the Thanh Hoa province bridge, comrade Mai Xuan Liem, member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Committee chaired the conference. Also attending were representatives of provincial departments and branches and a number of enterprises producing and trading cement, steel, and construction materials in the province.

Leaders of departments and branches attended the conference at Thanh Hoa bridge point.

According to the conference report, over the past 10 years (from 2014 to 2023), clinker and cement production output has generally increased and peaked in 2021 at 110.4 million tons. Then, output has dropped dramatically from 2023 to present. Total production output for the whole year of 2023 reached only 92.9 million tons. The average operating lines in the industry only reached 75% of the total design capacity and 42 lines had to stop operating for 1 to 6 months.

The Ministry of Construction estimates that the total national production output in the first 6 months of 2024 will only reach about 44 million tons of cement, equivalent to the same period in 2023, and factories are also expected to only reach about 70 - 75% of their design capacity. The accumulated cement inventory is about 5 million tons.

Representatives of construction materials manufacturing and trading enterprises in the province attended the conference.

Cement factories in our country have produced many types and types of cement products for civil and industrial construction. At the same time, they produce high-quality cement, fast-setting, heat-resistant, fire-resistant, durable in marine environments, well cement for oil and gas exploitation...

However, from 2023 to now, the consumption output of this item has decreased seriously. Total consumption output for the whole year of 2023 reached only 87.8 million tons, equal to 88% compared to 2022. Of which, domestic consumption is very low, reaching only 56.6 million tons (equal to 83.5% compared to 2022), the largest decline ever in the cement industry. It is expected that in the first 6 months of 2024, total consumption output will only be equal to the same period in 2022.

Comrade Mai Xuan Liem, Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Committee chaired the conference at Thanh Hoa bridge.

Similarly, the production and consumption of ceramic tiles from 2020 to present has decreased sharply due to many reasons. In 2023, the consumption of this item will only reach about 305 million ^m2 , equivalent to about 85% of the production output. The production and consumption of sanitary porcelain, glass, and unburnt construction materials have also continuously decreased.

In Thanh Hoa province, there are 6 cement production projects with a total designed capacity of about 27.37 million tons, of which 5 projects have been invested and put into operation with a total capacity of about 26.46 million tons/year. In the first 5 months of 2024, cement production output in the province reached about 6.881 million tons, sales were about 6.522 million tons, inventory was about 0.487 million tons. Products of cement factories in Thanh Hoa province are consumed in the domestic market (about 71.22%) and exported (about 28.78%) to a number of markets: China, Philippines, Hong Kong, Taiwan, Bangladesh, Australia, USA, ...

Regarding steel products, in 2023, domestic steel billet production will reach 22.2 million tons, up 11% over the same period in 2022 (20 million tons in the same period); construction steel will reach 12.45 million tons, down 10% over the same period in 2022 (13.9 million tons in the same period); hot-rolled coil (HRC) will reach 6.7 million tons, up 11% over the same period in 2022 (6 million tons in the same period); cold-rolled coil (CRC) will reach 3.4 million tons, down 15% over the same period in 2022 (4 million tons in the same period).

Delegates discuss at the conference (screenshot).

In the first 4 months of 2024, steel production of all kinds reached 9.36 million tons (up 5.7% over the same period in 2023), consumption reached 9.35 million tons. Most steel products have positive signals in production and business. However, steel pipes decreased by 8.1% over the same period in 2023 and hot-rolled coil decreased slightly.

Regarding construction materials, Thanh Hoa currently has 2 projects producing ceramic tiles (granite) with a total capacity of 18.5 million ^m2 /year, total investment value of about 2,500 billion VND; 41 projects producing fired construction materials with a total capacity of 1,295 million standard bricks (QTC)/year; 52 projects producing unfired construction materials with a total capacity of 1,204 million bricks/year. Projects producing ceramic tiles and construction materials (fired and unfired bricks) in the province have an annual industrial production value of about 3,000 billion VND, creating stable jobs for about 3,000 workers in the localities with an average income of 5 - 7 million VND/person/month.

The cause of this situation is said to be the decline in domestic demand for construction materials due to the decrease in domestic construction investment speed, many construction works and key infrastructure projects are slow to implement, have to delay and postpone progress; the domestic real estate market is quiet. Meanwhile, imported products have increased significantly in recent times, reducing the consumption of domestically produced construction materials...

Internally, many enterprises producing and trading cement, steel, and construction materials are facing financial difficulties. Many enterprises are operating inefficiently, leading to losses. Fuel prices are continuously increasing, leading to an increase in the cost of producing construction materials in general...

According to the report of the Department of Construction, in 2023, most construction materials recorded a decrease compared to 2022 in both production and consumption. Specifically, the output of ceramic tiles produced in 2023 is estimated at 11.146 million m2 , down 22%; the consumption is about 11.528 million m2 , down about 13.4%; the output of burnt bricks produced in 2023 is estimated at 735.1 million pieces, down 41%; the consumption is about 698.3 million pieces, down about 40%;...

At the conference, delegates focused on discussing, evaluating and thoroughly analyzing the production and consumption of cement, steel and construction materials in recent times. At the same time, they identified difficulties and challenges, proposed tasks and solutions to solve bottlenecks to remove difficulties and obstacles, in order to promote production, consumption and sustainable development of the cement, steel and construction materials industry in Vietnam.

Vice Chairman of Thanh Hoa Provincial People's Committee Mai Xuan Liem spoke at the conference.

Participating in the discussion at the conference, Mr. Mai Xuan Liem, Vice Chairman of the Provincial People's Committee, reported on the production and consumption of cement, steel and construction materials in the province in the past time. In particular, the Provincial People's Committee has created all favorable conditions within the framework of the law for enterprises to promote production and business, including enterprises producing and trading cement, steel and construction materials.

Vice Chairman of the Provincial People's Committee Mai Xuan Liem said that in the coming time, Thanh Hoa will continue to accelerate the implementation of public investment projects to stimulate the consumption of cement, steel and construction materials. This includes the implementation of investment in the construction of 11 social housing projects, worker housing projects...

Comrade Mai Xuan Liem proposed that the Government and central ministries and branches should do a good job of forecasting consumption demand so that enterprises can be proactive in production and business. At the same time, continue to do a good job of controlling the import of construction materials...

The Vice Chairman of the Provincial People's Committee proposed to the Government and the Prime Minister to direct the State Bank and commercial banks to have mechanisms and policies to support loans so that businesses can quickly overcome difficulties and promote sustainable production and trading of cement, steel and construction materials.

In his concluding remarks at the conference, Prime Minister Pham Minh Chinh highly appreciated the contributions made at the conference, as well as the organization of this conference, in order to remove difficulties, promote the production and consumption of cement, steel and construction materials. At the same time, he affirmed that the results demonstrated the attention of the Party and State, the strong participation in creating favorable conditions, removing difficulties and obstacles of ministries, branches and localities, as well as the efforts of enterprises.

Prime Minister Pham Minh Chinh delivered a concluding speech at the conference (screenshot).

Regarding solutions in the coming time, he emphasized 6 viewpoints in direction and management to focus on removing difficulties and obstacles, promoting production and consumption of construction materials in general, making important contributions to the socio-economic development of the country. In which, the Government needs to direct ministries, branches, localities and relevant agencies to synchronously and effectively implement the Strategy for development of construction materials in Vietnam and related current approved plans. In leadership and direction, it is necessary to take efficiency as a measure; closely follow reality, respect reality, promptly reflect policies on difficulties and challenges arising in the development process; organization of implementation must be drastic, strong, focused, key...

The development of the cement, steel and construction materials industry must ensure efficiency, basically meet domestic demand, ensure export demand, contribute to promoting economic and social growth and development. Quickly access and apply scientific and technological achievements in production and business, improve quality and diversify high-quality products with high economic value, meet construction needs. At the same time, use resources economically and effectively, avoid environmental pollution in the production of cement, steel and construction materials...

Regarding key solutions in the coming time, Prime Minister Pham Minh Chinh requested relevant ministries, branches and agencies to review mechanisms, policies and institutions to encourage investment in the rapid and sustainable development of the construction materials industry, serving the country's development. Be proactive, flexible and actively innovate in production and business; respond quickly to the actual market situation. Closely monitor and enhance the capacity to forecast domestic and international markets, support enterprises in the production and consumption of cement, steel and construction materials.

Promote public investment, build transport infrastructure, irrigation, urban and rural infrastructure, national defense and security infrastructure projects; remove difficulties for the real estate market; speed up the implementation of the project to build 1 million social housing units... to promote the consumption of cement, steel, and construction materials.

Delegates attending the conference at Thanh Hoa bridge point.

Comrade Pham Minh Chinh assigned specific tasks to a number of central ministries and branches to synchronously and effectively implement a number of solutions, such as debt relief and debt extension for enterprises; building a mechanism to encourage domestic production and consumption, limiting the import of some construction materials; strictly managing environmental protection in the production of cement, steel, and construction materials...

Prime Minister Pham Minh Chinh requested that cement, steel and construction material manufacturing enterprises need to raise their spirit and responsibility in implementing solutions to restructure governance, finance, investment, etc. to improve quality and operational efficiency. Invest in machinery and purchase new and modern technological equipment to reduce fuel, production costs, lower product prices, and improve competitiveness in the market. Seek cooperation opportunities, boost exports, etc.

He emphasized that ministries, branches, localities and enterprises, according to their functions, tasks and powers, need to be proactive, flexible, dynamic and creative within their authority to focus on removing obstacles and difficulties, promoting production and consumption of cement, steel and construction materials, contributing to the socio-economic development of the country....

Do Duc

Source: https://baothanhhoa.vn/tap-trung-thao-go-kho-khan-thuc-day-tieu-thu-xi-mang-sat-thep-va-vat-lieu-xay-dung-216858.htm