The Ministry of Construction has set a 10-15 percent annual growthtarget for exports of building materials so that they can reach 2-2.5billion USD by 2020 under a plan to develop the industry it hassubmitted to the Government for approval.
In envisages that by2020 the country will export 20-28 million tonnes of cement, 100-130million tonnes of ceramic tiles and 6-7.5 million tonnes of granitetiles, 6-8 million sanitary products and 100-110 million square metresof glass.
To achieve them the ministry will help the industry'sexports become competitive, consolidate traditional overseas markets andseek new outlets for products like cement, granite tiles, porcelaintiles, and sanitary ware.
A ministry official, who asked not tobe named, said the targets were predicated on the recent recovery inboth the domestic building materials and construction industries.
In2014 the building materials industry registered growth of 10.2 percentand is expected to grow by at least 10 percent this year.
Insiders said conditions are very favourable for the building materials industry to achieve its growth plans this year.
Theyreferred to the fact that many large construction projects are due thisyear in HCM City — like Vinhomes Central Park Tan Cang, The Landmark,Masteri Thao Dien, the R6 Vinhomes Royal City, Vinhomes Riverside, andImperia Garden.
A total of 169 transport projects are alsoscheduled to get underway this year, including some key projects likethe Ninh Binh-Thanh Hoa-Vung Ang Expressway and Trung Luong-My ThuanExpressway.
Several factories and warehouses are set to be builtacross the country in anticipation of an economic recovery and increasein foreign direct investment flows.
Cement producers will havethe opportunity to pare inventories and get decent prices because demandhas tended to rise in recent times and new supply is limited.
Asof the end of last year the country had 74 cement plants with acombined capacity of 77.35 million tonnes a year. Domestic market was70.6 million tonnes after rising by 15 percent, helping significantlynarrow the gap between supply and demand.
This year demand is expected to rise by 3 million tonnes, helping reduce inventories.
Inthe construction plastics sector, competition is fierce. There are fourmajor producers of construction plastics, all of them listed, namelyBinh Minh Plastics (BMP), Tien Phong Plastics (NTP), Da Nang Plastics,and Dong Nai Plastics.
BMP and NTP, among them, account for 50 percent of the market share.
Tocompete with them, smaller companies have had to increase commissionsfor agents and reduce prices if they want to bid for projects, affectingboth their profits and the industry's growth.
The 40 percentdrop in fuel prices has been a boon for building materials producers,especially those that make plastic pipes and stones for constructionsince they are based in areas far away from the market.
Analystssaid major building materials producers with wide distribution networks,good management and the ability to expand production could developfurther and expand their market share since demand was rising again.-VNA
In envisages that by2020 the country will export 20-28 million tonnes of cement, 100-130million tonnes of ceramic tiles and 6-7.5 million tonnes of granitetiles, 6-8 million sanitary products and 100-110 million square metresof glass.
To achieve them the ministry will help the industry'sexports become competitive, consolidate traditional overseas markets andseek new outlets for products like cement, granite tiles, porcelaintiles, and sanitary ware.
A ministry official, who asked not tobe named, said the targets were predicated on the recent recovery inboth the domestic building materials and construction industries.
In2014 the building materials industry registered growth of 10.2 percentand is expected to grow by at least 10 percent this year.
Insiders said conditions are very favourable for the building materials industry to achieve its growth plans this year.
Theyreferred to the fact that many large construction projects are due thisyear in HCM City — like Vinhomes Central Park Tan Cang, The Landmark,Masteri Thao Dien, the R6 Vinhomes Royal City, Vinhomes Riverside, andImperia Garden.
A total of 169 transport projects are alsoscheduled to get underway this year, including some key projects likethe Ninh Binh-Thanh Hoa-Vung Ang Expressway and Trung Luong-My ThuanExpressway.
Several factories and warehouses are set to be builtacross the country in anticipation of an economic recovery and increasein foreign direct investment flows.
Cement producers will havethe opportunity to pare inventories and get decent prices because demandhas tended to rise in recent times and new supply is limited.
Asof the end of last year the country had 74 cement plants with acombined capacity of 77.35 million tonnes a year. Domestic market was70.6 million tonnes after rising by 15 percent, helping significantlynarrow the gap between supply and demand.
This year demand is expected to rise by 3 million tonnes, helping reduce inventories.
Inthe construction plastics sector, competition is fierce. There are fourmajor producers of construction plastics, all of them listed, namelyBinh Minh Plastics (BMP), Tien Phong Plastics (NTP), Da Nang Plastics,and Dong Nai Plastics.
BMP and NTP, among them, account for 50 percent of the market share.
Tocompete with them, smaller companies have had to increase commissionsfor agents and reduce prices if they want to bid for projects, affectingboth their profits and the industry's growth.
The 40 percentdrop in fuel prices has been a boon for building materials producers,especially those that make plastic pipes and stones for constructionsince they are based in areas far away from the market.
Analystssaid major building materials producers with wide distribution networks,good management and the ability to expand production could developfurther and expand their market share since demand was rising again.-VNA
