18:07 | 11/05/2015 Trade
(VEN) - The domestic building material sector has gradually recovered as many local building material producers have boosted the export of their products.
Good signals of recovery
The promotion of building material exports has been encouraged as a way to reduce the pressure on the sector in terms of production and sales while improving competitiveness in the world market.
According to statistics from the Ministry of Construction, last year, the country used 70.58 million tonnes of cement, a 15 percent increase over the previous year. It also exported 19.68 million tonnes of building materials, a 30 percent increase; including 4.44 million tonnes of cement and 15.24 million tonnes of clinker. In addition, steel exports also reached 580,000 tonnes, meeting 110.87 percent of sectoral annual plan and earning about US$420 million, with major importers including Malaysia, Hong Kong-China, Cambodia, Laos and Myanmar.
Major domestic building material exporters included Viglacera, Vinaconex, Hoang Gia, Hong Ha, Taicera and ToTo, which have managed to boost sales via auctioning products to foreign companies and participating in international fairs. “To date, importers from 40 countries have bought building ceramic products, despite the difficulties for some other building materials,” said Chairman of Viglacera’s Member Council Luyen Cong Minh.
General Director of the My Xuan Brick Tile Pottery and Construction JSC Luu Ngoc Thanh also said, “We have consolidated our foothold in Cambodia after years of exporting building materials to this market, which has a high demand for building materials.”
However, building materials are not fetching good prices despite being exported in bulk. “Vietnam has the potential for promoting building material exports. However, this potential is tempered due to hindrances in related policies and regulations, finance, investment and sales promotion,” said Director of the Department of Building Materials Le Van Toi.
Focusing on boosting building material exports
Building material exporters should focus more on finding export markets for their products to solve related market and sales problems. Through boosting exports, these exporters will develop more strongly, said President of the Vietnam Cement Association Nguyen Quang Cung.
Director of the Department of Building Materials Le Van Toi said, “In the coming time, domestic building material businesses should focus on corporate restructuring towards building material production and trading complexes capable of producing international quality products.”
According to the Ministry of Construction, the domestic building material sector should have an export strategy for markets including Africa, America, Asia and the Middle East, along with improving export cooperation and trade promotion while streamlining administrative procedures to facilitate exporters.
Particularly, countries in the Middle East including the United Arab Emirates, Turkey, Oman and Iran have become major importers of domestic building materials. So the Department of African, West Asia and South Asia Markets has suggested domestic building material exporters should focus more on market research, consumer habits and product quality if wanting to promote sales to these markets.
“Domestic building material businesses should invest in modern technologies in order to improve quality of their products to meet requirements from markets like the US, Japan and the Republic of Korea, as well as from less demanding markets like Russia, Thailand and African countries,” said Le Van Toi.
Chairman of the Vietnam Association for Building Materials Tong Van Nga also suggested that domestic building material businesses should strictly comply with export regulations, stay proactive while facing export opportunities and challenges and focus more on branding and distribution. In addition, the government should have incentives for domestic building material exporters in terms of tax, technical barriers and certification of origin.
By Lan Anh