Many domestic construction material producers have outlined their newbusiness plans recently, giving priority to developing exports.
They see this as a way to increase profits because the domestic market outlook is still gloomy, analysts say.
They note that although domestic construction material market has inrecent months showed slight recovery signs after the two years ofsluggishness, significant improvements in purchasing power cannot beexpected.
The added focus on exports also has an eyeon long-term business success, given that Vietnam is part of theTrans-Pacific Partnership that is in force.
Thecement industry is an example of the strategic shift being made. In thefirst 10 months of the year, domestic firms consumed 48.27 milliontonnes of cement, up 12 percent year-on-year.
Of this, 10.5 million tonnes, or 10 percent were exported, registering a year-on-year increase of 62 percent.
This indicates that the going is still tough in the domestic marketand there is potential for increasing exports, the analysts as well asindustry insiders agree.
Tran Viet Thang, generaldirector of the Vietnam Cement Industry Corporation, said in the first10 months of the year the company exported 1.8 million tonnes of cement,equivalent to 601 percent of the yearly plan and 174 percent of thelast year's figure.
The Vietnam Glass and CeramicsCorporation has also made great efforts to export their products to 40countries. As a result, the company earned 30 USD million from theiroverseas business in the first nine months.
However,according to the Construction Material Producers Association, theconstruction materials industry is still caught up several "inherent"difficulties.
These include low sales, huge inventories andstagnant production, meaning many companies are not running at fullcapacity.
In the cement industry, many enterprisesare only operating at around 70 percent capacity, and several have evensuspended production.
A similar situation can beseen in the construction glass sector, with many firms running at 50percent of their production capacity and inventory rising to about300,000 tonnes.
Many industry insiders are hoping the TPP can help ameliorate the situation by boosting exports.
"With the TPP agreement, the domestic construction material industrywould be able to sell more products, while they can import betterproducts at reasonable prices," Chairman of the Vietnam SteelAssociation Pham Chi Cuong told Thoi Nay (Today) newspaper.
He said that most Vietnamese construction material products are ofaverage quality, but even these are needed in some countries. Thesecountries would have to drop their import tariffs under the TPP,creating an opportunity for Vietnamese firms.
According to Deputy Minister of Industry and Trade Tran Quoc Khanh, TPPmember countries have participated in 19 official rounds ofnegotiations, the last one taking place in August this year. Thenegotiations are expected to wrap up by the end of this year.
Khanh affirmed that when the TPP is put into place, Vietnam's exportsector will benefit as other countries 100 percent of import taxes.
In addition, Vietnam will have the chance to participate in globalproduction chains, which will pave the way for the country to furtherpromote the restructuring of its economy, increase job opportunities andimprove the business environment to attract more investment.
Tran Ngoc Chu, general director of the Ton Hoa Sen Company, said they now export to 30 countries around the world.
When the TPP agreement takes effect the company expects to haveopportunities to penetrate into major overseas markets including Chile,New Zealand, the US, Australia and Mexico, Chu said.
Economist Tran Minh Hai of the Ho Chi Minh City National Universitystressed the need for the domestic construction material producers tocome up with effective export strategies. He said the focus should onpricing, quality and sales promotion.-VNA
They see this as a way to increase profits because the domestic market outlook is still gloomy, analysts say.
They note that although domestic construction material market has inrecent months showed slight recovery signs after the two years ofsluggishness, significant improvements in purchasing power cannot beexpected.
The added focus on exports also has an eyeon long-term business success, given that Vietnam is part of theTrans-Pacific Partnership that is in force.
Thecement industry is an example of the strategic shift being made. In thefirst 10 months of the year, domestic firms consumed 48.27 milliontonnes of cement, up 12 percent year-on-year.
Of this, 10.5 million tonnes, or 10 percent were exported, registering a year-on-year increase of 62 percent.
This indicates that the going is still tough in the domestic marketand there is potential for increasing exports, the analysts as well asindustry insiders agree.
Tran Viet Thang, generaldirector of the Vietnam Cement Industry Corporation, said in the first10 months of the year the company exported 1.8 million tonnes of cement,equivalent to 601 percent of the yearly plan and 174 percent of thelast year's figure.
The Vietnam Glass and CeramicsCorporation has also made great efforts to export their products to 40countries. As a result, the company earned 30 USD million from theiroverseas business in the first nine months.
However,according to the Construction Material Producers Association, theconstruction materials industry is still caught up several "inherent"difficulties.
These include low sales, huge inventories andstagnant production, meaning many companies are not running at fullcapacity.
In the cement industry, many enterprisesare only operating at around 70 percent capacity, and several have evensuspended production.
A similar situation can beseen in the construction glass sector, with many firms running at 50percent of their production capacity and inventory rising to about300,000 tonnes.
Many industry insiders are hoping the TPP can help ameliorate the situation by boosting exports.
"With the TPP agreement, the domestic construction material industrywould be able to sell more products, while they can import betterproducts at reasonable prices," Chairman of the Vietnam SteelAssociation Pham Chi Cuong told Thoi Nay (Today) newspaper.
He said that most Vietnamese construction material products are ofaverage quality, but even these are needed in some countries. Thesecountries would have to drop their import tariffs under the TPP,creating an opportunity for Vietnamese firms.
According to Deputy Minister of Industry and Trade Tran Quoc Khanh, TPPmember countries have participated in 19 official rounds ofnegotiations, the last one taking place in August this year. Thenegotiations are expected to wrap up by the end of this year.
Khanh affirmed that when the TPP is put into place, Vietnam's exportsector will benefit as other countries 100 percent of import taxes.
In addition, Vietnam will have the chance to participate in globalproduction chains, which will pave the way for the country to furtherpromote the restructuring of its economy, increase job opportunities andimprove the business environment to attract more investment.
Tran Ngoc Chu, general director of the Ton Hoa Sen Company, said they now export to 30 countries around the world.
When the TPP agreement takes effect the company expects to haveopportunities to penetrate into major overseas markets including Chile,New Zealand, the US, Australia and Mexico, Chu said.
Economist Tran Minh Hai of the Ho Chi Minh City National Universitystressed the need for the domestic construction material producers tocome up with effective export strategies. He said the focus should onpricing, quality and sales promotion.-VNA
