The Ministry of Construction has proposed a series of solutions to 'save' the materials industry

8 materials associations called for help due to production difficulties. The Ministry of Construction proposed that the Government have many support measures such as reducing taxes and interest rates.

The Ministry of Construction has just consulted with the Ministries of Industry and Trade, Finance, and the State Bank on solutions to overcome difficulties for the materials industry before officially submitting them to the Prime Minister.

Previously, 8 associations included: Vietnam Construction Materials, Vietnam Cement, Vietnam Concrete, Vietnam Steel, Vietnam Construction Ceramics, Vietnam Construction Glass and Glass, Vietnam Roofing Sheets, The Vietnam Bridge and Road Science and Technology Association simultaneously called for help because output decreased and consumption was difficult.

According to the Ministry of Construction, this industry group annually contributes nearly 7% of Vietnam's GDP. The industry also plays an important role in infrastructure development, creating motivation for socio-economic development. However, in the face of a sharp decline in domestic real estate, slow implementation of public investment projects, and global economic instability, the industry's output has been affected both domestically and internationally.

Specifically, with cement, in the first 10 months of the year, the whole country consumed about 72.4 million tons, 4.35% lower than the same period last year; while exports decreased by 2%. The Ministry of Construction said that compared to normal, from the beginning of the year until now, domestic consumption has decreased by 13-15%. Many factories had to shut down to reduce inventory. Currently 8 lines, equivalent to 9% of the total cement production lines across the country, have stopped operating.

Steel production in 9 months also decreased by 21.6%, consumption decreased by nearly 20% compared to the same period last year. With ceramic tiles, in 10 months, output only reached about 47% of total design capacity, while consumption was 67% of production output. The amount of concrete also decreased by 14%.

To overcome difficulties for this industry, the Ministry of Construction proposed that the Ministry of Transport direct investors to increase the rate of using reinforced concrete viaducts for highway projects in the design stage, especially This is in areas with flood drainage requirements, weak soil areas and areas lacking road embankment materials such as the Mekong Delta.

Localities increase the use of cement concrete roads to build rural, mountainous roads and roads in frequently flooded areas.

The Ministry of Construction and the State Bank and localities will continue to deploy a credit package of 120,000 billion VND to develop social housing, worker housing, and renovate old apartments.

The Ministry also proposed to consider temporarily postponing the increase in clinker export tax (the main ingredient in cement products), reducing the clinker export tax rate to 0% until the end of 2025; Reduce loan interest rates for businesses producing construction materials (can reduce up to 2%) until the end of 2025; Continue to extend, do not charge interest on overdue debts and restructure loans to reduce difficulties for businesses.

In addition, under pressure from a sharp increase in imported products (for example, tiles), the Ministry of Construction proposed that the Ministry of Industry and Trade investigate anti-dumping on products from a number of countries to impose anti-dumping taxes. when necessary.

On the contrary, for businesses, the Ministry believes that it is necessary to improve competitiveness, proactively diversify products, and innovate in production.

Via vnexpress