Construction materials manufacturing and trading enterprises strive to overcome difficulties

The high prices of raw materials and fuels for production, along with the impact of the economic recession in the world and domestically, have reduced construction demand and slow product consumption, putting great pressure on enterprises producing and trading construction materials in the province.

The decline in construction demand has made it difficult for businesses operating in the construction materials industry to sell their products. (Photo taken at A My Industrial Joint Stock Company, Lap Thach District). Photo: Chu Kieu

From the end of 2022 to the end of 2023, the real estate market in the province in particular and the whole country in general fell into a slump, with very few transactions.

Considered the final "link" of the real estate value chain, the construction materials industry has been severely affected. High bank interest rates and economic difficulties have caused a sharp decrease in construction demand, especially for civil works, construction, and home repair.

In fact, many businesses operating in this industry have had to cut staff, reduce production output, and have employees take time off to work overtime; many distributors have had to temporarily close and transfer or lease business premises.

At the beginning of 2024, a number of construction material manufacturing enterprises in the province were forced to cut 30-50% of their operating capacity, such as Vitto Vinh Phuc Co., Ltd. (Tam Duong), Hoan My Co., Ltd. (Vinh Yen)...

Due to a sharp decline in domestic and export orders along with strong fluctuations in raw material prices, the operations of A My Industrial Joint Stock Company (Lap Thach) in 2023 will face many difficulties.

However, thanks to self-renewal, improving quality, diversifying product designs, continuing to review, upgrade and renew 37 product showrooms,... the company still maintains stable jobs for nearly 2,000 employees.

To solve the difficulties in 2024 when global market consumption decreases by 10%; countries have many protection policies for domestic products with tariff barriers, strict standards, and anticipate the trend of "green production", the company promotes innovation, builds a professional management system; focuses on research, continuously launches new products to the market, protects consumers' health and limits emissions that pollute the environment such as tiles, negative ion wooden floors; antibacterial wooden floors...

Thanks to that, in the first 6 months of 2024, the company produced 4.2 million m2 of various types of tiles. The products are currently available in 63 provinces and cities across the country and are exported to 25 countries and territories, including many "difficult" markets with strict standards such as the US, UK, Europe...

Specializing in the production of high-quality bricks and tiles with 2 automatic lines, with a capacity of 3 million products/year, in 2024, Amado High-quality Tile Joint Stock Company, Tam Duong II Industrial Park sets a goal of striving to become the leading manufacturer of high-quality fired clay bricks and tiles in Vietnam and exporting about 20% of bricks and tiles to Southeast Asian markets in 2024.

Striving to overcome difficulties in the context of the difficult construction materials market, the company focuses on optimizing the production process, ensuring 5S implementation in production, and products meeting ISO 9001: 2015 standards.

Along with the recovery of the real estate market since the beginning of the second quarter of this year, the company's consumption output also recorded a significant increase. In the first 6 months of 2024, the company produced more than 2.5 million m2 of bricks and tiles of all kinds; maintained jobs and stable income for more than 310 workers with an average salary of 7 - 10 million VND/person/month.

According to the report of the Provincial People's Committee, after a period of stagnation, the construction materials market in the province has shown signs of recovery. The demand for construction and repair of houses and works serving the production and business activities of the people has increased, the disbursement of investment capital in the province has achieved positive results, the progress of construction of basic works has ensured the plan, promoting and expanding the consumption market, helping to increase output and revenue for businesses in the industry.

Thanks to that, the province's construction activities in the first 6 months of the year remained stable and grew; the added value of the construction industry is estimated to increase by 7.4% over the same period, contributing 0.34 percentage points to the province's GRDP growth. The production output of construction materials products increased sharply; in which, the production of ceramic tiles alone is estimated to increase by 8.21% over the same period in 2023.

However, the recovery of the real estate market in general is still slow, not really able to create a "push" to promote the growth of the construction materials industry. In addition, the price of input materials is still high, causing the construction materials from the beginning of the year to increase dramatically, making it difficult for contractors to carry out construction contracts, which also affects the increase in the number of projects and works in the coming time.

In order to promptly remove difficulties for enterprises operating in the industry in particular, contributing to promoting socio-economic development in the area, the Provincial People's Committee requests departments, branches, People's Committees of districts and cities to strengthen their responsibility in performing public duties; focus on site clearance, speed up investment preparation, investment decisions, contractor selection, speed up construction progress, disbursement progress of public investment capital of works and projects, especially large and key works and projects.

Synchronously implement many solutions to remove difficulties for the real estate market, develop stably, safely, healthily and sustainably. Along with that, enterprises operating in the industry need to continue to proactively innovate technology, diversify products, reduce production costs to improve competitiveness, expand consumption markets, maintain operations and overcome difficulties.

Luu Nhung

Source: https://baovinhphuc.com.vn/Multimedia/Images/Id/113483/Doanh-nghiep-san-xuat-kinh-doanh-vat-lieu-xay-dung-no-luc-vuot-kho