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Workers of a wood company in Binh Duong are making furniture |
Gloomy construction materials market
The housing market pain resulted in no buyers at large building material warehouses in Ho Chi Minh City’s districts 12 and Hoc Mon even in splendid interior stores on roads To Hien Thanh, Ly Thuong Kiet in districts 10 and Tan Binh.
Mr. Bui Thanh Long, owner of a large store specializing in construction wood on Le Van Khuong Street in District 12, said that the gloomy trade has lasted since the Lunar New Year until now, the sales volume is only 1/10 compared to the same period last year.
This is the most difficult period in the last 10 years, Mr. Long sighed.
According to Mr. Long, as the housing market is in crisis, construction works decrease, and directly related fields also face difficulties especially the building materials industry. Mr. Bui Thanh Long moaned if people don't have demand, even if store owners reduce the prices, there will be no customers because no one buys these materials to reserve when the price drops.
Similarly, no buyer was seen in stores selling construction materials and furniture such as To Hien Thanh Street in District 10 and Ly Thuong Kiet Street in Tan Binh District. Selling bathroom equipment and high-end furniture for more than 20 years, Ms. Hoang Bao Ngoc Chau, owner of a store in To Hien Thanh Street, said that sales started to decline after the Covid-19 epidemic and decreased sharply since the beginning of this year.
Particularly, in May, sales dropped to the lowest within nearly a decade, not enough to cover expenses. While there is a sharp fall in new construction, buyers also cut their spending. In the past, people could spend VND200 million- VND300 million on interior decoration, but very few people build new houses or buy materials to beautify their houses now, said Ms. Chau.
Meanwhile, Mr. Vu Dinh Kien from Taika Tiles Construction Materials Company in District 12 said that the business situation has been especially difficult for about a year. He wailed that because he thought after Tet, the demand for construction was high, so the company imported a large amount of inventory to get a good price; yet, low consumption is leading to a big inventory for a long time and the company’s poor cash flow.
According to statistics from building material industry associations, wood, furniture, iron and steel, brick consumption recorded a sharp decrease. Mr. Nguyen Quang Cung, Chairman of the Vietnam Cement Association, said that sales of cement are facing many difficulties due to low consumption. According to updated data from the Vietnam Steel Association, output has decreased in both production, import and consumption directions, and since the beginning of the year, prices have decreased 8 times.
Looking forward to public investment projects
With more than 20 years of experience in the profession, Chairman of the Ho Chi Minh City Handicraft and Woodworking Association (Hawa) Nguyen Quoc Khanh said that weak purchasing power has not been over the past 10 years, causing ups and downs in the wood market. However, many businesses have overcome the impact of the Covid-19 epidemic and they are trying to overcome difficulties to bring the wood industry back to development this year.
In order to promotions and discounts to restore the market, businesses have studied to introduce new products to the market that both satisfy consumers’ tastes and enhance competitiveness by improving the technology chain. Moreover, they have access to the government’s preferential policies.
Talking about solutions for the building materials industry’s difficulties, Chairman of the Vietnam Association of Building Materials Tong Van Nga analyzed that this year the National Assembly has approved a plan to invest in public construction with huge capital. Disbursement of public investment must be faster and more drastic than last year. Many large-scale public investment projects have been kicked off, expecting to help improve construction material sales.
Meanwhile, speaking recently at a seminar on the construction industry, Mr. Pham Van Bac, Director of the Department of Building Materials under the Ministry of Construction, suggested the Government should have a policy to timely remove difficulties for businesses because the country has seen an economic decline. He advised businesses to reduce production output and apply scientific and technological solutions to reduce costs and increase competitiveness.
