Construction materials businesses strive to overcome difficulties

The impacts of the economic downturn, reduced construction demand, weak consumer spending, and most recently, the severe damage caused by Typhoon No. 3, are the main reasons why many construction material manufacturing and trading businesses in the province are facing difficulties. In response to this situation, businesses have made efforts to implement solutions to ensure stable production and care for their employees.

Brick and tile production at the Viet Ceramic Complex.

Since the beginning of the year, the consumption of building materials by the Viet Ceramic Complex has faced many difficulties as construction activities in some foreign markets have slowed down, leading to a decrease in export revenue. Meanwhile, in the domestic market, the pace of construction has decreased sharply, and customer preferences have also changed, with people no longer using traditional 22-piece/m2 roof tiles as much as before. To maintain revenue, the Viet Ceramic Complex has implemented solutions such as increasing manpower and seeking more domestic markets and customers. In addition, the company has received support and sharing from its employees through the form of returning their salaries to the company to help alleviate the difficulties.

Ms. Le Thi Hai, from Dat Viet Brick and Tile Joint Stock Company (Dat Viet Ceramic Complex), shared: "We always strive to complete all assigned tasks, sharing the hardships with the company, and depositing savings into the company's account is one concrete action. This is voluntary; we deposit the money and earn interest each year, just like a bank deposit. More importantly, it helps the company somewhat during difficult times and maintain production."

According to Labor Hero Nguyen Quang Mau, Chairman of the Board of Directors of Dat Viet Ceramic Complex, although 2024 was a very difficult year for the construction materials market, it was also the year the company was able to access and introduce many products into religious and spiritual projects nationwide, thus helping to alleviate some of the revenue shortfall. Currently, the company is actively transforming and producing new products to better meet the needs of these projects, thereby maintaining production and ensuring jobs for its employees.

Following Typhoon No. 3, the Viet Ceramic Complex suffered heavy damage, with many corrugated iron roofs blown off in the production workshops, flooding, and many old trees broken or uprooted. The total estimated damage is approximately 10 billion VND. However, the company has made efforts to repair the damage and resumed production lines starting on September 16th.

Currently, four cement manufacturers and 26 brick and tile manufacturers in the province are facing common difficulties in sales and slow market conditions, making it difficult to meet their 2024 revenue targets. These businesses are making efforts to find customers and markets to sell their products, adapting sales policies, and restructuring production… The goal is to avoid excessive inventory, maintain production, and ensure income for their employees.

Lam Thach Cement Plant has resumed normal production after Typhoon No. 3.

Following the devastating effects of Typhoon No. 3, construction material manufacturing companies in the province suffered heavy losses, impacting production, causing disruptions, and resulting in revenue losses. For example, Quang Ninh Cement and Construction Joint Stock Company estimated direct losses from Typhoon No. 3 at approximately 13 billion VND. However, the losses didn't stop there; during the period without electricity, water, and communication, production was halted, resulting in revenue losses of about 5 billion VND per day. Furthermore, the inability to deliver products on time to foreign partners also caused the company losses of 2.3 billion VND per day. Currently, the Lam Thach Cement Plant has generally returned to normal production. Although there are still many things to be done, the company is determined to continue production while gradually addressing the problems.

Besides the self-efforts of each enterprise and the cooperation of its employees, construction material manufacturers are eagerly awaiting policies to support businesses affected by Typhoon No. 3, stimulate domestic product consumption, promote construction investment, boost public investment, develop the real estate and housing market, reduce taxes, fees, and charges… to alleviate difficulties for construction material businesses.

Comment (0)