The construction materials industry is facing significant financial challenges, including high investment rates and slow product consumption, which makes it challenging for businesses to repay debt and interest on bank loans. In response to these challenges, the government has implemented targeted policies to enhance competitiveness, promote sustainable growth, and drive socio-economic development in the coming years.
Prime Minister Pham Minh Chinh directed the State Bank to review and adjust regulations on freezing, extending, and lowering bank interest rates to better accommodate businesses’ financial capabilities. He also urged businesses to restructure their capital sources and reduce costs to maintain cash flow for debt repayment and production expenses. The Prime Minister emphasized the importance of investing in technology and equipment to reduce production costs, improve product quality, enhance competitiveness, and protect the environment.
In addition to these measures, businesses were advised to streamline their sales agent system, reduce intermediary costs, explore new markets, and increase exports to boost revenue. These strategies are aimed at addressing the slow product consumption that has forced many businesses to halt production lines further exacerbating financial strains.
The construction materials industry accounts for approximately 11% of the national GDP with an estimated annual revenue value of nearly $47 billion. To promote economic growth in 2024 and beyond, ministries and localities have been called upon to focus on resolving production and consumption challenges in the sector. Specific incentive policies for using alternative fuels and materials in production, tax incentives for domestic production, trade defense measures for imported products are among the strategies proposed to support the industry’s development.
