The construction materials industry is still facing difficulties.

Located at the final link in the real estate value chain, the construction materials industry is closely linked to the industries at the higher levels. Therefore, when the real estate market began to slow down from the end of 2022 and continued until now, the demand for construction also faced similar difficulties, causing problems for manufacturers and businesses in the construction materials industry.

The construction materials industry is still facing difficulties. High-end stone cladding production line of Cu Nga One-Member Limited Company (Dong Son).

As a supplier of high-end ceramic tiles and furniture, the Central Vietnam Showroom in Dong Ve Ward ( Thanh Hoa City) is facing considerable difficulties. The main reasons are the slowdown in construction investment, with many infrastructure projects being delayed or postponed, resulting in unfavorable business conditions. Simultaneously, increased transportation costs have led to higher building material prices, compounded by external market impacts.

Ms. Phung Mai Anh, manager of the Central Vietnam Showroom, stated: "Currently, the showroom's processing and supply capacity for building materials has decreased by more than 30% compared to the same period last year. The amount of inventory remains quite high, significantly impacting production and business operations. Therefore, to overcome this adversity, there is no other way than for the company itself to make an effort. In the coming time, we will focus on restructuring, re-evaluating our business model, and optimizing operations to ensure sustainable development and competitiveness. In the trading and business segment, we will proactively increase brand awareness, seek out and develop more distributors and different agents. In particular, we will focus on controlling inventory, tightening management to minimize production costs, lower product prices, and improve quality to create a competitive advantage in the market."

In reality, due to slow product consumption, many businesses have been forced to halt some production lines, leading to unprecedented difficulties in cash flow for repaying bank loans and covering raw material costs. Therefore, the building materials industry is witnessing a shift in business direction among many building materials manufacturing and trading companies.

Also a company specializing in stone construction projects, the production activities of Cu Nga Co., Ltd. (Dong Son) have slowed down for a few months since the beginning of the year due to a decline in the market. According to the company's director, Tran Ngoc Cu: Currently, although orders remain steady until the end of the year, the pace is significantly slower than last year. While acknowledging this is a common difficulty for the entire construction materials industry, the company must seriously reassess its business performance. This is crucial, not only for understanding customer needs but also as an opportunity for companies to identify and leverage competitive advantages. Accordingly, the company has focused on improving the skills and expertise of its personnel and machinery operators in a professional manner. At the same time, the company is developing new product lines such as ceramic-printed decorative glass and processing products using modern machinery and equipment. In addition, the company plans to stockpile goods to serve the year-end construction season, hoping to regain its position in the building materials industry in general and for the company itself in particular.

According to statistics from the Thanh Hoa Department of Industry and Trade, since the beginning of the year, many construction materials have maintained production growth compared to the same period last year, with construction bricks increasing by 9.1% and iron and steel by 11.2%. Businesses believe that lower lending interest rates, increased public investment, and policies promoting the real estate market will be the driving force for the construction materials industry's continued recovery in the second half of 2024. In addition, current construction material prices have decreased by about 10-15% compared to the beginning of the year, which is also a positive factor impacting market consumption.

However, for businesses in the construction materials industry to face the challenges and difficulties ahead, each enterprise needs to review its development mechanisms and policies; in particular, it needs to be more flexible and proactive in its production and business plans, balance supply and demand, and improve its market forecasting capabilities. The Thanh Hoa Department of Industry and Trade is also supporting construction materials businesses in connecting with and stimulating consumer demand for products within the province; creating favorable conditions for businesses to stabilize production and boost sales.

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