Thai Nguyen: Construction material production enterprises are facing difficulties due to Covid-19 epidemic


(10/04/2020 8:42:48 AM) Facing increasingly complicated developments of the Covid-19 epidemic, the socio-economic situation of the country, including Thai Nguyen, was strongly impacted. In particular, due to prolonged epidemics, production and business activities stalled, businesses in the province in general, construction material manufacturing enterprises in particular are struggling to overcome difficulties.

Thai Nguyen Iron and Steel Joint Stock Company - one of the biggest steel-producing enterprises in the country, is also an enterprise having material import and export activities with many countries in the region. Since Viet Nam announced the outbreak of Covid-19, its production activities have been ongoing, however, the import of raw materials and supplies from regional countries has been severely affected. , plus slow-rolled steel consumption market, making businesses face many difficulties.

According to the representative of the unit, compared to the same period in 2019 and the previous years, rolled steel consumption from the beginning of 2020 has reached only about 30%, large inventories, production costs have not decreased, because so the risk of reducing revenue compared to the plan is unavoidable. Nguyen Minh Hanh, General Director of Thai Nguyen Iron and Steel Joint Stock Company, said that this year we consume between 30 and 35 thousand tons of rolled steel every year. But now, due to the complicated development of the Covid-19 epidemic, construction works and real estate businesses have stalled, leading to a very low consumption of our products. From there, it also leads to the risk of loss in production and business in the present time.

Also in the same situation, the real estate market is gloomy, the number of construction works decreases, export activities stall ... many cement production enterprises face difficulties. According to forecasts of the Ministry of Construction, in 2020, domestic demand for cement is estimated to increase by 4-5% compared to 2019. However, due to prolonged epidemics, people's income and housing demand will decrease, cement industry continues to face oversupply, leading to instability of the entire cement business in the industry. Only in the first quarter, Thai Nguyen's cement industry produced and consumed nearly 570 thousand tons of products of all kinds, only 23% of the year plan. Mr. Nguyen Van Dung, Director of La Hien Cement Joint Stock Company, said that our entire production market cannot be exported, so inventories will increase. The company has also proactively extended repair plans, organizing production in line with market conditions in the current season.

La Hien Cement Joint Stock Company also faces difficulties in exporting activities.

Not only iron and steel products, but also all industries, businesses producing and trading construction materials in the area were affected by the Covid-19 epidemic. According to the analysis of economic experts, in the beginning of 2020, the real estate market declined, in some segments with freezing situation, leading to difficulties for investors of projects; difficult investors, construction materials are also difficult to follow. Meanwhile, the import-export activities of raw materials and construction materials products of enterprises also stopped because of epidemics. Although compared to other production and business sectors such as hotels, restaurants, transportation ... construction materials were affected later, but the recovery was also slower. Mr. Luc Minh Son, Director of Prime Pho Yen Joint Stock Company, said that the market is currently very difficult to ensure product consumption. The company has just upgraded its equipment, along with developing new product lines and designing new models to meet the market's tastes.

Mr. Pham Van Quang, Permanent Vice Chairman of Thai Nguyen Business Association, affirmed that to overcome these difficulties, the government is currently focusing on fighting epidemics. So how to warm up the vitality of businesses so that businesses have the spirit to regain sales, cover the losses caused by the epidemic.

Difficulties in production and business have led to the consequences related to tax delays or the risk of bank credit bad debt increased. Under this situation, under the direction of the Government and related ministries and agencies, Thai Nguyen province has directed units to continue reviewing and implementing solutions to support businesses to overcome difficulties.

Specifically, loan extension and restructuring will be performed; extension of land rental, extension, delay, extension of tax payment for businesses and individuals affected by Covid-19 epidemic ... However, to overcome this difficult period, businesses in general and enterprises Production of construction materials in particular needs to be renewed. Finding new partners and changing management thinking, which will be the foundation to promote production development in the future. (TH / TH Thai Nguyen)


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