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.
Also attending were Deputy Prime Minister Le Minh Khai, Deputy Prime Minister Tran Hong Ha, Minister of Construction Nguyen Thanh Nghi, Minister of Industry and Trade Nguyen Hong Dien, leaders of central and local departments, ministries, agencies; representatives of associations, organizations and enterprises.
Speaking at the opening of the meeting, Prime Minister Pham Minh Chinh emphasized 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 (CMC) industry in our country is one of the most important issues, always receiving attention from the Government and the Prime Minister. There have been many policies and strategies to promote development to meet domestic consumption and export needs.
With the policies of the Government, 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, in which cement has been invested with a total capacity of 122 million tons/year, ranking among the top in the world. The total estimated investment at current value is up to 500,000 billion VND (equivalent to 20 billion USD).
The investment in ceramic tiles has total capacity of 831 million m2/year. The total investment is estimated at current value of about 100,000 billion VND (equivalent to 4 billion USD).
Sanitary ware has been invested with a total capacity of 26 million products/year. The total investment is estimated at current value of about 25,000 billion VND (equivalent to 1 billion USD).
Glass has been invested with a total capacity of 5,900 tons of glass/day (equivalent to 331 million m2 of glass/year), ranking among the top 5 countries with the largest output in Southeast Asia. The total investment is estimated at current value at about 50,000 billion VND (equivalent to 2 billion USD).
The investment in unburnt building materials has reached a total capacity of 12 billion bricks/year. The total investment is estimated at current value at about 12.5 trillion VND (equivalent to 500 million USD).
The steel industry (2011-2022 period) has a high growth rate (average of 14.25%). Steel output in 2022 increased 5 times compared to 2011. Especially in the 2016-2022 period, the steel industry achieved a very high growth rate with an average of 27.11%/year.
However, 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 yet recovered, the production of cement, steel and construction materials has declined, specifically.
Cement and clinker: Total production output in 2023 will only reach 92.9 million tons, with the industry's average operating line only reaching 75% of its total design capacity. Total consumption output in 2023 will reach 87.8 million tons, equal to 88% compared to 2022.
Construction steel: 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 emphasized that the conference held today is very important to find solutions to remove difficulties and obstacles to promote the production and consumption of cement, steel and construction materials in the coming time, especially to boost the supply for public investment projects, social housing, the national target program on new rural construction and other important projects.
The Prime Minister asked the delegates to exchange, discuss and share in a frank and responsible spirit, focusing on assessing and carefully analyzing the production and consumption of cement, steel and construction materials in recent times. In particular, clarify why the consumption of cement, steel and construction materials from 2023 to present has decreased significantly, not reaching the set target?
Identifying difficulties and challenges in production such as high fuel costs; scarce raw materials, high prices; increasing pressure on environmental protection and climate change; lack of breakthrough policies to support enterprises producing cement, steel and construction materials...
Regarding domestic consumption, the domestic real estate market is sluggish; the speed of investment in construction of some infrastructure projects, irrigation projects, and national target projects for new rural construction is still slow; transportation costs are high; competition with imported goods...
Regarding export, institutions and policies have not created favorable conditions for export; trade defense measures of countries have increased. Regarding finance, how has the credit capital of cement, steel and construction material enterprises been resolved? What are the difficulties and obstacles in the coming time? What key tasks and solutions need to be proposed to remove difficulties and obstacles, in order to promote the production and consumption of cement, steel and construction materials?
In the coming time, what should the Government, ministries, sectors, localities, businesses and people do to sustainably develop the cement, steel and construction materials industry in Vietnam? Specific solutions and roles and responsibilities of all levels and sectors in resolving bottlenecks.
The Prime Minister requested that the delegates speak in the spirit of the Conference focusing on discussion, speaking frankly, not beautifying or blackening, clearly pointing out what has been done and what has not been done; objective and subjective causes, lessons learned; key issues that need to be resolved and making proposals and recommendations to the Government, the Ministry of Construction, the Ministry of Industry and Trade and other ministries, branches and localities.
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