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Property market to overcome difficulties

Update: July, 07/2012 - 10:24

HA NOI — The property market could not be stimulated and real estate enterprises and construction material producers would continue coping with difficulties in the second half of this year.

The Minister of Construction, Trinh Dinh Dung, made the statement at a conference held in Ha Noi yesterday on reviewing the construction industry in the first half and tasks for the remaining months of this year. The industry reached a total industrial production valued at VND283.3 trillion (US$13.49 billion) in the first half, up 5.2 per cent against the same period last year.

Cement consumption hit nearly 23.9 million tonnes and the companies exported 3.2 million tonnes of cement during the period. Ceramic tile output was 61.3 million square metres, 3 per cent lower than the corresponding time, according to the ministry's reports.

Property prices of almost all market segments decreased and a number of transactions also slumped in the first half.

"The industry's businesses will continue facing impediments on production, sales, financial resources," the minister said.

The firms that could neither balance their debts and capital nor retain production would go bankrupt. These problems had not only negatively impacted business effectiveness but also lives of labourers, he said.

To deal with the problems, the minister affirmed that the ministry would restructure the property market and focus on real estate segments which were suitable to consumers' demand.

The ministry will ask provinces, cities and localities to implement housing development programmes this year and undertake the national housing development strategies by 2020 and orientations by 2030 in a bid to support the consumption of construction materials.

The ministry would manage to support the firms in resolving their financial problems, he said.

In addition, it would more strictly control construction projects using the State budget in all progresses from project establishment to appraisals, design, and licences for construction in order to avoid losses, the ministry said. — VNS

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