On the morning of June 15th, Prime Minister Pham Minh Chinh chaired a nationwide online conference to discuss solutions to overcome difficulties and promote the production and consumption of cement, steel, and construction materials.
Prime Minister Pham Minh Chinh chaired a conference to address difficulties and promote the production and consumption of cement, steel, and construction materials.
Attending the conference at the Government Headquarters were Deputy Prime Ministers Le Minh Khai and Tran Hong Ha, along with representatives from the leadership of central committees, ministries, and agencies.
At the Thanh Hoa provincial meeting point, Mr. Mai Xuan Liem, Member of the Standing Committee of the Provincial Party Committee and Vice Chairman of the Provincial People's Committee, chaired the conference. Also attending were representatives from provincial departments and agencies, as well as a number of cement, steel, and construction material manufacturing and trading enterprises in the province.
Leaders of departments and agencies attended the conference at the Thanh Hoa branch.
According to reports presented at the conference, over the past 10 years (from 2014 to 2023), clinker and cement production generally increased, peaking in 2021 at 110.4 million tons. Production then declined sharply from 2023 to the present. Total production for the entire year of 2023 reached only 92.9 million tons. On average, production lines across the industry operated at only 75% of their designed capacity, and 42 lines had to cease operations for 1 to 6 months.
The Ministry of Construction forecasts that total national cement production in the first six months of 2024 will only reach approximately 44 million tons, equivalent to the same period in 2023, and factories are also expected to operate at only about 70-75% of their designed capacity. Cumulative cement inventory is estimated at around 5 million tons.
Representatives from businesses involved in the production and sale of construction materials in the province attended the conference.
Cement factories in our country have produced many types and products of cement for civil and industrial construction. They have also produced high-quality cements that harden quickly, are heat-resistant, fire-resistant, durable in marine environments, and well cement for oil and gas exploration.
However, since 2023, consumption of this product has decreased significantly. Total consumption for the whole year of 2023 reached only 87.8 million tons, equivalent to 88% of the 2022 figure. Of this, domestic consumption was very low, reaching only 56.6 million tons (83.5% of the 2022 figure), the largest decline ever recorded in the cement industry. It is projected that total consumption in the first six months of 2024 will also be the same as the same period in 2022.
Comrade Mai Xuan Liem, Member of the Standing Committee of the Provincial Party Committee and Vice Chairman of the Provincial People's Committee, chaired the conference at the Thanh Hoa branch.
Similarly, the production and consumption of ceramic tiles have decreased sharply from 2020 to the present due to various reasons. In 2023, consumption of this item only reached about 305 million m² , equivalent to about 85% of production output. The production and consumption of sanitary ware, glass, and non-fired building materials have also continuously declined.
In Thanh Hoa province, there are 6 cement production projects with a total designed capacity of approximately 27.37 million tons, of which 5 projects have been invested in and are in operation with a total capacity of approximately 26.46 million tons/year. In the first 5 months of 2024, cement production in the province reached approximately 6.881 million tons, with sales of approximately 6.522 million tons and inventory of approximately 0.487 million tons. Products from cement factories in Thanh Hoa province are consumed in the domestic market (approximately 71.22%) and exported (approximately 28.78%) to several markets: China, the Philippines, Hong Kong, Taiwan, Bangladesh, Australia, the United States, etc.
Regarding steel products, in 2023, domestic production of steel billets reached 22.2 million tons, an 11% increase compared to the same period in 2022 (20 million tons); construction steel reached 12.45 million tons, a 10% decrease compared to the same period in 2022 (13.9 million tons); hot-rolled coil (HRC) reached 6.7 million tons, an 11% increase compared to the same period in 2022 (6 million tons); and cold-rolled coil (CRC) reached 3.4 million tons, a 15% decrease compared to the same period in 2022 (4 million tons).
Delegates discussing at the conference (screenshot).
In the first four months of 2024, steel production reached 9.36 million tons (a 5.7% increase compared to the same period in 2023), while consumption reached 9.35 million tons. Most steel products showed positive signs in terms of production and sales. However, steel pipe production decreased by 8.1% compared to the same period in 2023, and hot-rolled steel coil production saw a slight decrease.
Regarding construction materials, Thanh Hoa currently has 2 projects producing ceramic tiles (granite) with a total capacity of 18.5 million m² /year and a total investment value of approximately 2,500 billion VND; 41 projects producing fired building materials with a total capacity of 1,295 million standard bricks/year; and 52 projects producing non-fired building materials with a total capacity of 1,204 million bricks/year. These projects producing ceramic tiles and other building materials (fired and non-fired bricks) in the province have an annual industrial production value of approximately 3,000 billion VND, creating stable jobs for over 3,000 local workers with an average income of 5-7 million VND/person/month.
The cause of this situation is believed to be the decline in domestic demand for construction materials due to the slowdown in domestic construction investment, the delay and postponement of many key infrastructure projects, and the sluggish domestic real estate market. Meanwhile, imports have increased significantly in recent times, leading to a decrease in the consumption of domestically produced construction materials...
Internally, many businesses producing and trading cement, steel, and construction materials are facing financial difficulties. Many businesses are operating inefficiently, leading to losses. Fuel prices are constantly rising, which in turn increases the production costs of construction materials in general...
According to the Department of Construction's report, in 2023, most construction materials recorded a decline compared to 2022 in both production and consumption. Specifically, the production of ceramic tiles in 2023 was estimated at 11.146 million m² , a decrease of 22%; consumption was approximately 11.528 million m² , a decrease of about 13.4%; the production of fired bricks in 2023 was estimated at 735.1 million bricks, a decrease of 41%; consumption was approximately 698.3 million bricks, a decrease of about 40%;... | |
At the conference, delegates focused on discussing, evaluating, and thoroughly analyzing the production and consumption of cement, steel, and construction materials over the past period. They also identified difficulties and challenges, and proposed tasks and solutions to address bottlenecks and obstacles, aiming to promote production, consumption, and sustainable development of Vietnam's cement, steel, and construction materials industries.
Vice Chairman of Thanh Hoa Provincial People's Committee Mai Xuan Liem delivered a speech at the conference.
Participating in the conference discussion, Mr. Mai Xuan Liem, Vice Chairman of the Provincial People's Committee, reported on the production and consumption of cement, steel, and construction materials in the province over the past period. He noted that the Provincial People's Committee has created favorable conditions within the framework of the law to enable businesses, including those producing and trading cement, steel, and construction materials, to boost production and business activities.
According to Vice Chairman of the Provincial People's Committee Mai Xuan Liem, in the coming period, Thanh Hoa will continue to accelerate the implementation of public investment projects to stimulate the consumption of cement, steel, and construction materials. This includes the investment and construction of 11 social housing and worker housing projects.
Comrade Mai Xuan Liem proposed to the Government and central ministries and agencies that it is necessary to do a good job of forecasting consumption demand so that businesses can be proactive in production and business. At the same time, it is necessary to continue to do a good job of controlling the import of construction materials...
The Vice Chairman of the Provincial People's Committee proposed to the Government and the Prime Minister to direct the State Bank of Vietnam and commercial banks to have mechanisms and policies to support loan capital so that businesses can quickly overcome difficulties and promote sustainable production and business of cement, steel, and construction materials.
In his concluding remarks at the conference, Prime Minister Pham Minh Chinh highly appreciated the contributions made at the conference, as well as the organization of the conference, aimed at resolving difficulties and promoting the production and consumption of cement, steel, and construction materials. He affirmed that these results reflect the concern of the Party and the State, the strong involvement of ministries, sectors, and localities in creating favorable conditions and resolving difficulties and obstacles, as well as the efforts of businesses.
Prime Minister Pham Minh Chinh delivers the concluding remarks at the conference (screenshot).
Regarding future solutions, the comrade emphasized six guiding principles for direction and management aimed at focusing on removing difficulties and obstacles, promoting the production and consumption of construction materials in general, and making a significant contribution to the socio-economic development of the country. Specifically, the Government needs to direct ministries, sectors, localities, and relevant agencies to implement the Vietnam Construction Materials Development Strategy and related approved plans in a comprehensive and effective manner. In leadership and direction, effectiveness should be the benchmark; policies should closely adhere to and respect practical realities, promptly reflecting emerging difficulties and challenges during the development process; and implementation must be decisive, strong, and focused.
The development of the cement, iron and steel, and construction materials industries must ensure efficiency, meet basic domestic needs, satisfy export demands, and contribute to promoting socio-economic growth and development. It is crucial to quickly access and apply scientific and technological achievements to production and business, improve quality, and diversify high-quality products with high economic value to meet construction needs. Simultaneously, it is essential to use resources economically and efficiently, preventing environmental pollution in the production of cement, iron and steel, and construction materials.
Regarding key solutions for the coming period, Prime Minister Pham Minh Chinh requested relevant ministries, agencies, and organizations to review mechanisms, policies, and institutions that encourage investment in the rapid and sustainable development of the construction materials industry, serving national development. They should proactively, flexibly, and actively innovate in production and business; and respond quickly to market realities. They should closely monitor and enhance their capacity to forecast domestic and international markets, and support businesses in the production and consumption of cement, steel, and construction materials.
Boosting public investment, building transportation infrastructure, irrigation systems, urban and rural infrastructure, and national defense and security infrastructure; removing obstacles in the real estate market; accelerating the implementation of the project to build 1 million social housing units... to promote the consumption of cement, steel, and construction materials.
Delegates attending the conference at the Thanh Hoa branch.
Comrade Pham Minh Chinh assigned specific tasks to a number of central ministries and agencies to implement a number of solutions synchronously and effectively, such as debt restructuring and debt deferral for businesses; building mechanisms to encourage domestic production and consumption, limiting imports of certain construction materials; and strictly managing environmental protection in the production of cement, steel, and construction materials...
Prime Minister Pham Minh Chinh urged cement, steel, and construction material manufacturers to enhance their commitment and responsibility in implementing restructuring solutions in governance, finance, and investment to improve operational quality and efficiency. He also called for investment in machinery and the purchase of new, modern technological equipment to reduce fuel consumption and production costs, lower product prices, and enhance market competitiveness. Furthermore, he urged them to seek cooperation opportunities and boost exports.
The comrade emphasized that ministries, departments, localities, and businesses, according to their functions, tasks, and powers, need to be proactive, flexible, dynamic, and creative within their authority to focus on removing obstacles and difficulties, boosting the production and consumption of cement, iron and steel, and construction materials, contributing to the socio-economic development of the country.
Do Duc
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