The Directive states: Construction materials (CMs) including cement, construction steel, tiles, sanitary ceramics, construction glass, construction materials and other types of CMs play a very important role in serving the construction of infrastructure, urban areas, and housing in the design and development of the country. The production and consumption of CMs affect the maintenance of macroeconomic stability, control of inflation, promote economic growth, create jobs for workers, and ensure social security.
However, in recent years, the construction materials industry in our country has encountered many difficulties, production output, consumption and revenue have all decreased, leading to the risk of impacting the economy and affecting the industrialization and modernization process of the country. Through the assessment of ministries, branches, associations and enterprises in the industry, it shows that the main difficulties include:
Firstly, the policy mechanism for sustainable development of the construction materials industry is still far from reality; policy responses are not 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. The policy mechanism to support construction materials manufacturing enterprises applying science and technology has not been specifically issued.
Second, the cost of coal, FO oil, compressed natural gas (CNG), liquefied petroleum gas (LPG) and electricity is increasing. Raw materials for the production of construction materials such as limestone, clay, cement additives; white silica sand, limestone, dolomite for glass; kaolin, feldspar (feldspar) for tiles, sanitary porcelain; sand for the production of unburnt construction materials (VLXKN), input materials for steel, etc. are still facing difficulties, sometimes not ensuring enough stability for production.
Third, the domestic and export construction materials consumption market faces 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, delays or delays; high transportation costs; the export of clinker and construction materials products has decreased 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 fiercely competitive due to the significant increase in imported products in recent times.
Fourth, the financial situation is difficult because construction material manufacturing enterprises, especially cement enterprises, have a large proportion of loans from banks and credit institutions. In the initial stage of operating the factory, enterprises have to repay loans, plus high interest rates, leading to great pressure to repay both principal and interest. Due to the very slow consumption of products recently, many enterprises have had to stop some production lines, leading to difficulties in cash flow to repay loans to banks and costs of raw materials and fuel for production. Many construction material factories, especially cement and construction steel factories, are inefficient and lose money, leading to bad debt.
Fifth, the situation of smuggling, trade fraud, counterfeit goods and imitation goods related to construction materials has not been thoroughly resolved.
6 guiding views of the Prime Minister
To overcome the above difficulties and obstacles and promote the production and consumption of cement, steel and construction materials in the coming time, the Prime Minister requests ministries, branches, People's Committees of provinces and centrally-run cities, and heads of relevant agencies to thoroughly grasp the following guiding viewpoints:
Closely follow reality, promptly respond to policies with emerging difficulties and problems, organize drastic and strong implementation in leadership and direction of production and consumption activities of cement, construction steel and other construction materials.
Developing the construction materials industry to ensure efficiency and sustainability, basically meeting domestic demand, increasing the export of construction materials products with high economic value, contributing to promoting socio-economic growth and development.
Quickly access and apply scientific, technological and management achievements, especially the fourth industrial revolution in production; improve product quality; diversify high-quality products with high economic value to meet construction needs.
Using resources economically and effectively, saving energy, raw materials and fuels in production; exploiting and using mineral resources economically; maximizing the use of waste and scrap from industries, agriculture, construction and domestic waste as raw materials, fuels and additives for the production process in the direction of circular economy; minimizing the impact on the environment in the process of exploiting, processing and using minerals and producing construction materials in the direction of green production.
Promote and encourage investors and economic sectors to participate in investment and development of construction materials;
Distribute the network of construction material production facilities nationwide in accordance with the natural and social conditions of each region.
4 key tasks and solutions
Ministries, branches, People's Committees of provinces and centrally-run cities, and Heads of relevant agencies focus on implementing the following 4 tasks and solutions:
Regarding the mechanism and policy for industry development, review mechanisms, policies and institutions to encourage investment in the development of the construction materials industry quickly and sustainably, serving the production and business of enterprises, contributing to the socio-economic development of the country. Restructure debt repayment terms, adjust and reduce lending interest rates for customers, including enterprises in the construction materials industry according to the law. Issue preferential policies on the use of domestic waste, industrial waste, waste from some industries such as ash, slag, gypsum, etc. as fuel and alternative raw materials in the production of cement and other construction materials. Strengthen state management in the construction materials sector, especially in the production and consumption of cement and construction steel.
Study and adjust tax policies on cement clinker exports to ensure competitiveness with other countries exporting this product, and at the same time be consistent with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on not imposing export taxes on goods with countries signing the Agreement. Strengthen measures on trade defense, technical barriers, anti-dumping for iron and steel products, construction materials such as imported tiles, wood fiber boards (LDF/MDF/HDF), sanitary porcelain, construction glass, etc. to eliminate unfair competition and ensure compliance with Vietnam and WTO regulations.
Regarding the application of science and technology and production transformation of the industry, especially green production, proactively innovate, flexibly apply high technology, digital transformation, green transformation, and circular economy to reduce costs, improve productivity, quality, and product competitiveness.
Regarding the market, strengthen forecasting of domestic and foreign developments to proactively have timely and effective response solutions, helping businesses have orientations to stabilize production and business; fight against smuggling, trade fraud, counterfeit goods; expand domestic and foreign markets.
Promote public investment, construction of transport and irrigation infrastructure, investment in development of urban and rural infrastructure, national defense and security projects, marine and island projects to serve people's lives and develop the marine economy.
Removing difficulties for the real estate and housing market; promoting the implementation of Resolution No. 33/NQ-CP dated March 11, 2023 of the Government on a number of solutions to remove and promote the safe, healthy and sustainable development of the real estate market.
Promote the implementation of the Project to invest in building at least 1 million social housing apartments for low-income people and other housing construction programs and projects to consume construction materials.
Research to increase the selection rate of using reinforced concrete viaducts for expressway projects, especially in areas requiring flood drainage, areas with great depth of weak soil and areas lacking roadbed materials such as the Mekong Delta; research to maximize the use of cement soil reinforcement in road construction at bridgeheads, culverts, locations with great embankment height, locations with great depth of weak soil, etc.
Promote the construction of climate change prevention projects such as breakwaters and anti-landslide projects to prevent land subsidence in affected areas.
Prioritize investment in cement concrete roads in the development of rural roads in mountainous areas, areas with difficult terrain, steep slopes, and in areas that are frequently flooded.
Regarding international cooperation, promote investment cooperation, transfer of science, technology, and business administration to improve efficiency, save raw materials and fuel, improve labor productivity, product quality, and protect the environment in the field of construction materials.
The Prime Minister requested the Ministry of Construction to review and evaluate the implementation of the Construction Materials Development Strategy for the 2021-2030 period, with a vision to 2050 in Decision No. 1266/QD-TTg dated August 18, 2020; the Program for Development of Non-Construction Materials in Vietnam to 2030 in Decision No. 2171/QD-TTg dated December 23, 2021 and legal documents, programs and projects related to construction materials to adjust them in accordance with socio-economic development practices.
Effectively implement the Planning for exploration, exploitation, processing and use of minerals as construction materials for the period 2021 - 2030, with a vision to 2050 in Decision No. 1626/QD-TTg dated December 15, 2023 and the Plan for implementation of the Planning for exploration, exploitation, processing and use of minerals as construction materials for the period 2021 - 2030, with a vision to 2050 in Decision No. 711/QD-TTg dated July 24, 2024.
Urge construction material enterprises, especially cement, to reduce production costs, save energy, invest in depth, innovate technology, increase investment in residual heat power generation systems and use alternative fuels from waste, and use alternative materials from industrial waste such as ash, slag, and gypsum.
The Ministry of Construction shall preside over and coordinate with relevant ministries and branches to review and complete mechanisms, policies, standards, regulations and implement measures on technical barriers for imported construction materials, especially tiles, sanitary ceramics and construction glass, ensuring compliance with WTO regulations on Free Trade; preside over and coordinate with ministries, branches and localities to focus on removing difficulties for the real estate market, promote the implementation of the Project on investment in the construction of at least 01 million social housing apartments for low-income people and other housing construction programs and projects.
The Ministry of Industry and Trade urgently submits to the Prime Minister for promulgation the Strategy for the development of Vietnam's steel industry until 2030, with a vision to 2050. In particular, the construction steel sector needs to ensure a balance between supply and demand and sustainable investment development.
The Ministry of Industry and Trade coordinates with the Ministry of Finance and relevant ministries and branches to research and propose the completion of mechanisms and policies for the development of the construction steel sector, such as: policies on various taxes (import tax, corporate income tax, etc.), attracting investment, developing national standards; decentralization and delegation of authority in the management of the construction steel sector.
Preside over and coordinate with the Ministry of Construction and relevant ministries and branches in reviewing dossiers requesting investigation and application of trade defense measures, conducting investigations according to regulations and promptly issuing specific measures on trade defense for iron and steel products and construction materials such as imported tiles, wood fiberboard (LDF/MDF/HDF), sanitary porcelain, construction glass, etc. to ensure compliance with the provisions of Vietnamese law and the WTO.
Preside over and coordinate with the Ministry of Construction, People's Committees of provinces and centrally-run cities, associations and professional associations to promote trade and access foreign markets to support enterprises exporting clinker and cement; construction steel, galvanized steel and steel products.
Create conditions for businesses to invest in the production of construction materials.
The Ministry of Finance shall preside over the drafting of a Decree amending Decree No. 26/2023/ND-CP dated May 31, 2023 on the Export Tariff Schedule, Preferential Import Tariff Schedule, List of goods and absolute tax rates, mixed tax, import tax outside the tariff quota; study and propose adjustments in the direction of applying export tax rates on cement clinker products at appropriate levels to remove current difficulties in product consumption.
Preside over the development of the Decree guiding the Law on Value Added Tax (amended) after it is approved by the National Assembly; study regulations on cement clinker products in the direction of "cement clinker products subject to VAT" including domestic consumption and export.
The People's Committees of provinces and centrally run cities encourage and create conditions for 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.
Timely resolve procedures for approving investment policies and land leases for investment projects in mineral exploitation for construction materials and construction material production. At the same time, when considering and deciding to approve investment policies for construction material production projects, careful consideration should be given to avoid excess investment, leading to oversupply and waste of social resources.
At the same time, localities promote public investment projects, social housing, construction of transport infrastructure, irrigation, investment in urban and rural infrastructure development, and natural disaster prevention in the area to increase the use of cement, steel and other construction materials.
Cut production costs, reduce product prices
In addition, construction material enterprises must innovate, apply modern production technology and management methods, improve productivity, quality, reduce product costs; review and cut production costs for raw materials, fuels such as coal, oil, gas and electricity; apply solutions to improve energy efficiency in production, take advantage of cheap fuel sources from waste to reduce production costs.
Diversify construction material products to suit different types of construction works, climate conditions, and regions; increase production of construction material products to replace imports to meet market demand; seek and expand markets, promote the export of construction material products to many countries around the world...
Source: https://kinhtedothi.vn/thu-tuong-chi-thi-go-vuong-thuc-day-san-xuat-tieu-thu-vat-lieu-xay-dung.html
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