The slump in the
local property market has in turn led to stagnation in the construction and
construction materials industries.
Sales
was down by 40 per cent now compared with the same period last year, said Hoang
Van Tieu, deputy director of the Hoang Thien Phat Ltd company, which sells
luxury interior materials.
"Many
importing companies like us are offering big promotions but we still cannot
sell because construction has no hope in the near future," he said.
Nguyen
Kim Thuy, director of the Hoang Son Ltd company, said: "We are looking at
other markets like Malaysia, Cambodia and Laos, but if the local market remains
at a standstill, we will have to trade other products."
According
to figures from the General Statistics Office, unsold stocks in the
construction materials industry have increased by 21 per cent this year.
Some,
like electric cables (86 per cent) and cement (84 per cent), have seen stocks
rise by an astonishing rate.
There
are also 30 million sq. metres of flowered enamelled tiles worth 2 trillion
dong (US$100 million) and 400,000 tonnes of steel in stock.
The
Vietnam Steel Association predicts around a fifth of all steel companies to go
bankrupt this year since many big companies have had to cut production by 50-70
per cent.
Besides,
the prices of major inputs like coal and electricity have risen sharply,
causing manufacturers more difficulties.
Falling
demand for their goods has been exacerbated by the loosening of controls on
imports.
The
construction materials industry wants the Government to tighten control over
imports and help them tide over this difficult period.
For
their part, it is vital to restructure production, work together within other
industry players, build strong brands, cut costs, and improve their
competitiveness.
Vietnam
News
Business & Investment Opportunities
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