Construction material industry's revenue to reach 47 billion USD

Despite significant domestic demand due to low housing rates and incomplete infrastructure, Vietnam's construction materials industry faces challenges, according to insiders.

Workers load cement bags on a truck at a factory. (Photo: VNA)
Workers load cement bags on a truck at a factory. (Photo: VNA)

Hanoi (VNS/VNA) - Despite significant domestic demand due to low housing rates and incomplete infrastructure, Vietnam's construction materials industry faces challenges, according to insiders.

At a recent seminar on the development of Vietnam’s modern and sustainable construction material sector on November 9, Le Trung Thanh, Director of the Department of Building Materials at the Ministry of Construction, revealed that the industry generated around 47 billion USD annually, contributing 11% to the national GDP.

According to Thanh, the domestic demand for construction materials remains substantial due to low housing areas nationwide, with the urbanisation rate at around 43% and incomplete infrastructure in transport and energy sectors. These factors provide a significant room for development in the construction material industry.

However, in recent years, the Vietnamese construction material industry has encountered numerous challenges.

Both consumption and revenue have decreased, posing risks of production stagnation and business disruptions for enterprises, potentially leading to job losses and impacting socio-economic development.

Nguyen Quang Hiep, Director of the Institute of Building Materials, pointed out that many production sectors primarily invested in small to medium scales, particularly in areas such as brick and tile manufacturing, fired clay, unfired bricks, stone extraction and construction sand.

Consequently, the application of science and technology in production faced significant challenges.

The production of materials in Vietnam relied heavily on input factors like mineral resources, technology, energy and capital. The balance between supply and demand for various product types was inadequate, resulting in overstocking and underutilisation of business production capacity, he added.

However, the utilisation of alternative raw materials, promoting economic circularity in construction material production, had not received sufficient attention and appropriate investment.

Hiệp highlighted the importance of the government and enterprises continuing to enhance management, apply science and technology and focus on developing new environmentally friendly high-performance construction materials.

Quach Huu Thuan, Deputy General Director of Viglacera, said that the integration of technology, innovation and creativity remained the consistent guiding principle.

This approach is the key to Viglacera's successful and powerful brand, according to Thuan.

Viglacera is currently seen as a pioneering domestic enterprise in innovation and creativity in the field of construction material production. By consistently investing in cutting-edge global technologies and focusing on green technologies and products, it aims to become a top choice when penetrating demanding markets like Europe, North America and the Middle East.

However, in the current fiercely competitive landscape, Thuan believed that the government and relevant ministries need to establish robust policies to support consumption and encourage the use of new high-tech products.

This includes setting up technical barriers for imports and ensuring fair treatment similar to other countries. Additionally, updating technical regulations, standards, and timely price notifications for new product lines are essential to facilitate usage in national projects.

Meanwhile, Thanh also sees the current challenges in the construction materials industry as an opportunity to assess the capabilities and efficiency of enterprises and products.

To enhance productivity, quality, and competitiveness in both domestic and international markets, it requires efforts in technology application, marketing, and environmental protection from all stakeholders./.

VNA

See more

Furusawa Yasuyuki, General Director of AEON Vietnam Company Limited, speaks at a meeting with Can Tho city's leaders. (Photo: VNA)

Can Tho creates enabling environment to attract Japanese investors

The Mekong Delta city of Can Tho is committed to creating the best possible conditions for Japanese companies to study, invest and develop projects, Standing Vice Chairman of the municipal People’s Commitee Duong Tan Hien said at a January 20 meeting with representatives from the Japanese Embassy and businesses in Vietnam.

Representatives of the Vietnamese Ministry of Industry and Trade and the Office of the US Trade Representative sign an agreement regarding anti-dumping on Vietnamese fish fillets on January 20 (Photo: moit.gov.vn)

US anti-dumping duty removed from Vietnamese fish fillets

A bilateral agreement between the Vietnamese and US Governments regarding anti-dumping duties on Vietnamese fish fillets was signed on January 20, marking the end of relevant disputes in Case DS536 at the World Trade Organisation (WTO).

The red carps for the ritual remain reasonably priced at 25,000-75,000 VND for three fish, depending on sizes. (Photo: VNA)

Hanoi markets bustle as residents prepare for Kitchen Gods’ Day

Markets across the capital city of Hanoi are teeming with fresh produce and traditional offerings as locals are preparing to bid farewell to the ong Cong (Land Genie) and ong Tao (Kitchen Gods) to the heaven, an important precursor to the Tet (Lunar New Year) celebrations.

Illustrative image (Photo: cafef.vn)

Banks step up capital mobilisation policies

Many banks have promoted capital mobilisation policies right from the beginning of 2025 to improve financial strength and meet the credit demand that is forecast to increase sharply this year.

Illustrative image (Photo: VinFast)

VinFast officially enters India market, unveils two EVs

Vietnamese electric vehicle manufacturer VinFast has unveiled two all-electric B-segment and C-segment SUVs, VF6 and VF 7, that will be sold in the Indian market within the framework of the Bharat Mobility Global Expo 2025 on January 18.

WEF’s Head of Regional Agenda for Asia-Pacific Joo-Ok Lee. (Photo: VNA)

WEF expert believes in Vietnam’s new era

As the world transitions into a new era, Vietnam is emerging as a key player in multilateral cooperation mechanisms and a beacon of growth and development, said the World Economic Forum (WEF)’s Head of Regional Agenda for Asia-Pacific Joo-Ok Lee.

VinFast's green bus fleet is ready to supply to three transport companies. (Photo: VNA)

VinFast launches new e-bus model

VinFast, a leading Vietnamese electric vehicle manufacturer, on January 17 launched a new electric bus model with the capacity to carry up to 60 passengers.