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Submitted by ctv_en_4 on Wed, 03/15/2006 - 11:00
The construction materials sector has set a target of US$1 billion in export earnings by 2010, according to the chairman of the Vietnam Construction Materials Association, Tran Van Huynh.

Exports should make up 25-30 percent of all construction materials produced during 2006-10 and grow by an average 25 percent annually in this period, Mr Huynh said.

To reach these targets, he said it would be necessary to survey major export markets, modernise production technology and equipment, utilise domestic material resources and increase co-operation with foreign trade partners. To improve product quality, the sector will focus on new technology and marketing as key factors in its export strategy. It also needs to step up trade promotion activities and establish a specialised trade organisation.

According to Hoang Thinh Lam, deputy head of the Planning and Investment Department, the sector should develop a master plan to devise export strategies for each type of product. He added that supporting industries catering for construction material production were essential, and key products of the sector needed to be identified so priority could be given to marketing the products.

In recent years, made-in-Vietnam construction materials such as stone, ceramic tile, granite tiles, decorative tiles, ceramic wares and glass products have been available in the world market. In 2001-05, the country posted a sharp increase in construction material exports, harvesting US$100 million in 2005, US$76 million higher than 2001's figure. However, Vietnam's construction material exports are yet to meet their full potential, Mr Lam said.

He attributed the limited exports to neglect on behalf of producers. He said that although the nation has a vast amount of industrial suppliers, only 236 enterprises had exported construction materials to date.

The range of construction materials being exported is limited and total construction material exports accounted for only a small proportion of the country's export value, about 0.32 percent in 2005, said Mr Lam.
At present, exports make up about 9-10 percent of the construction material sector's production value, which is lower than that of other countries in the region.

According to Mr Lam, the spontaneous development of the Vietnamese construction materials sector and a lack of market forecasting are among the major reasons leading to the sector’s low export value. Domestic construction material producers are still inexperienced in production and export promotion activities. They are yet to develop product development strategies or affirm their trademarks on international markets.

At the same time, high production costs have made domestic construction materials 15-20 percent more expensive than average price on the world market, said Mr Lam, warning that the longer this situation continues, the less competitive the sector will be as the country integrates into the world economy.


VNA

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