Government leader underscores sustainable development of building material industry

The statement was made by Prime Minister Pham Minh Chinh while chairing an online conference on removing difficulties and promoting production and the consumption of cement, iron and steel, and construction materials. 

In his opening speech, the Vietnamese Government chief underlined the importance of cement, iron and steel, and building materials as essential materials in serving to build technical infrastructure facilities, civil and industrial works, airports, ports, defence and security projects, and urban and rural infrastructure systems.

With the Government's policies coupled with the involvement of sectors, localities, and enterprises; the cement, iron and steel, and construction material industry have seen remarkable development over the last 10 years. In line with this cement has been invested with around US$20 billion to reach a total output of 122 million tonnes annually, thereby making it among the world’s leading cement producers.

The steel industry enjoyed a high growth rate of 14.25% on average during the 2011 to 2022 period, with steel output in 2022 increasing five times compared to the figure from 2011. Especially in the 2016 to 2022 period, the steel industry achieved a very high growth rate with an average of 27.11% per year.

However, in recent years due to the impact of many unfavourable factors at home and abroad along with a stagnant real estate market; the production of cement, iron and steel, and construction materials has declined.

Total production output of cement and clinker last year reached a mere 92.9 million tonnes, with this output only serving to meet 75% of the total design capacity, while total consumption hit 87.8 million tonnes, equal to 88% compared to 2022.

Construction steel production stood at 10,655 million tonnes, down 12.2% on-year and consumption reached 10,905 million tonnes, down 11.2% compared to 2022.

PM Chinh emphasized that the conference is of great importance to achieve the goal of seeking solutions to remove difficulties and obstacles in a bid promote greater production and consumption of cement, iron and steel, and construction materials in the coming time. This should be done whilst focusing on intensifying provision for public investment projects, social housing, national target programmes for new rural construction, and other important projects.

It is essential to carefully evaluate and analyze the production and consumption of cement, iron and steel and construction materials in recent times, Chinh said, while emphasizing the need to clarify why the consumption of cement, iron and steel and construction materials from 2023 until now has decreased significantly, failing to reach the set target.

The cabinet leader also pointed out a number of difficulties and challenges in production, domestic consumption and exports such as rising fuel costs, sluggish domestic real estate market, and growing trade remedy measures of other countries.

It is necessary to devise solutions, point out objective and subjective causes, lessons learned and clarify the specific roles and responsibilities of all sectors and relevant agencies in resolving bottlenecks, he added.