A brick production factory in Tuyên Quang Province. — VNA/VNS Photo Tuấn Anh

HÀ NỘI — Public investment projects are giving a big push to the domestic construction material industry, according to Vietnam Report.

The State has sped up the development of public investment projects. The implementation of many key transport projects such as ring roads, the North-South expressway and Long Thành Airport, and the approval of many industrial and urban infrastructure projects will bring direct benefits to the construction material sector, the company said.

At the same time, the positive inflows of foreign direct investment will likely continue in 2024 thanks to the country's political stability, an attractive investment environment and foreign investor commitments. That is expected to create momentum for a breakthrough in the domestic construction material market in the time to come, it said.

Meanwhile, the amended Land Law which was passed by the National Assembly early this year and the newly-approved Law on Real Estate Business will have a positive impact on the recovery of the real estate market, and facilitate the rebound of the local construction materials market.

However, the company said that the demand for construction materials from public investment cannot offset the current excess supply of building materials, especially when businesses operate at their maximum capacities.

Therefore, businesses in this industry also needed to expand their positions in the domestic market, seek new export outlets to increase product consumption and overcome the current difficult period, the company suggested.

Vũ Đăng Vinh, General Director of Vietnam Report, said this year's development prospects should be given to green building materials. Developing green materials will be a vital path for businesses to limit their dependence on scarce resources, protect the environment and meet sustainability standards.

Earlier, the Ministry of Construction had proposed reductions of taxes and interest rates, together with measures to promote the use of building materials in the context that the industry, especially cement, has had the most difficult year in a decade.

To support the building material industry to overcome the difficult time, the ministry also proposed increasing the use of cement in infrastructure projects.

Specifically, the Ministry of Transport should ask investors to use reinforced concrete viaducts for highway projects that were being designed, especially in areas of weak soil and lacking road base materials such as the Mekong River Delta.

Localities should increase the use of cement in road construction.

In addition, the policy of reducing value-added tax by two percentage points should be extended.

The ministry also proposed policies be raised to encourage deep processing and promote exports.

The construction ministry urged the Ministry of Industry and Trade to launch anti-dumping investigations on several products that saw significant increases in imports.

Producers should actively improve their competitiveness, diversify products, renovate production technologies and expand export markets, the ministry said.

Nguyễn Quang Hiệp, Deputy Director of the Building Materials Department under the Ministry of Construction, called for greater attention to developing the urban infrastructure system, transport infrastructure and drainage systems, as well as removing difficulties for the housing market.

The export tax on clinker should be kept at 5 per cent instead of 10 per cent for at least the next two years, he said.