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Construction sector eyes exports

Update: August, 20/2014 - 10:10

The construction material industry should be promoting exports, director of the Department of Construction Materials Le Van Toi told Thoi bao Kinh te Viet Nam (Viet Nam Economic Times).

Could you give us an overview of the consumption of construction materials in Viet Nam recently?

The construction material market has been warming up recently, but a lot of challenges remain.

Cement has been a bestseller in the past few years, particularly this year, thanks to the Government's policy to give investment priority to infrastructure development.

In addition, since 2012, Vietnamese cement has been much sought after in the world market while its price has also increased. Sales of cement domestically and internationally in the first seven months of 2014 were over 37 million tonnes - an increase of 8 per cent compared to the same period last year.

Consumption of other building materials, including tiles of different categories, glasses and toilet ceramics, is also on the rise. As a result, their inventory has been considerably reduced.

I think that we should concentrate more on exports, as our products are highly valued in the international market for their good quality.

Do you mean that we have potential for export but have not utilised it?

As I said above, our building materials are high quality and meet all conditions to penetrate the international market. However, to do this we need support from the government, particularly when it comes to market promotion.

The 2014 national export master plan was approved by the government. On the side of enterprises, in addition to traditional markets, they should invest more time and money on market research in Africa, America and the Middle East.

Many people say the main thing preventing Vietnamese products from penetrating foreign markets is their weak competitive advantage. What's your position on this?

Generally speaking, we are on the right track in export activities. It has helped to increase our foreign currency while maintaining sustainable production and business.

Though we have gained an international market niche for our construction materials, their added value remains very modest compared to other commodities.

I have to concede that our products are not diverse and quite a lot of them have to go through mediators. These are the key factors affecting the prices of our products and reducing their competitive advantage.

Our building materials producers face many challenges, including export tariffs, market promotion and transportation, while trying to penetrate markets in western Europe, Russia and the US. A big volume of Chinese construction materials has been imported into our domestic market.

What should we do to solve this problem?

Recently, construction material enterprises met and came up with a proposal asking the government to introduce a policy on commercial protection, anti-dumping and unhealthy competition to enable Vietnamese enterprises to compete with foreign enterprises on a level playing field.

However, in the long run, building materials associations should be more proactive. They should establish their own network and co-operate to penetrate major markets.

All in all, Vietnamese enterprises should make efforts to improve the quality of their products and launch campaigns calling on Vietnamese to use Vietnamese products. These are the core factors for our construction materials makers to secure a foothold in the domestic market while expanding internationally, particularly to high-end markets like the US, Japan, South Korea and EU member countries.

In addition, Vietnamese enterprises should take initiative to restructure the construction industry so that they will be financially and technically able to reduce prices of their products and improve their competitive capacity. — VNS

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