These days, the production activities of VVMI Quan Trieu Cement Joint Stock Company (a member of Viet Bac Mining Industry Corporation - TKV) are only at a moderate level. Mr. Do Ngoc Huy, Deputy Director of VVMI Quan Trieu Cement Joint Stock Company, said: Since the end of 2023, realizing that the construction materials production market has not shown much improvement, the Company's Board of Directors has been cautious in advising and proposing to the Corporation to develop a production and business plan. Specifically, in 2024, the company aims to have a stable cement consumption output compared to 2023 (equivalent to 700 thousand tons). However, by the end of the first 6 months of this year, the cement output sold to the market only reached 40% of the plan (equivalent to 280 thousand tons).

The difficulties of VVMI Quan Trieu Cement Joint Stock Company are also common difficulties for many enterprises operating in the same field such as: La Hien VVMI Cement Joint Stock Company; Quang Son Cement... At La Hien VVMI Cement Joint Stock Company, in the first 6 months of the year, the cement consumption output reached approximately 42% of the yearly plan, equivalent to 275.6 thousand tons; revenue reached about 282 billion VND, reaching 41%. The reason why the cement consumption market is facing difficulties is due to the recent global and domestic economic inflation situation, which has caused the construction demand of people and enterprises in many fields to decline. In addition, the slow disbursement of investment capital and the slow recovery of the real estate market have made the cement market even more gloomy.

In addition, domestic cement production is currently in a state of oversupply. Meanwhile, Vietnam's cement and clinker export activities are being subject to many countries' policies to protect domestic cement production, technical trade barriers, temporary anti-dumping taxes, etc., causing domestic cement inventories to increase. The difficult consumer market makes competition among cement enterprises increasingly fierce. In order to adapt to the market as well as create jobs for workers, enterprises must have many solutions such as: Constantly searching for and expanding market share; introducing policies to "stimulate" consumption such as promotions, product price reductions or adjusting the capacity of the furnace and working hours of workers, etc.

Mr. Hoang Trung Kien, Manager of Clinker Production Workshop of VVMI Quan Trieu Cement Joint Stock Company, shared: The workshop currently has 86 employees. Since the beginning of the year, due to difficulties in cement consumption, the factory has temporarily stopped the production kiln 3 times. However, the company still implements solutions for employees such as rotating work, encouraging leave to ensure enough work and receive salary according to regulations. Similarly, at VVMI La Hien Cement Joint Stock Company; Quang Son Cement... according to our records, the biggest pressure now is to both lower product prices to increase competitiveness in the market but still ensure other production costs, including salaries and income of employees. This makes these units accept reduced profits and further strengthen solutions to save and fight against interest and fees in production and business.

According to the assessment of most cement enterprises in the province, the ability to complete this year's plan is very difficult. Because the construction market from now until the end of 2024 is forecasted to not have much improvement. In domestic market, cement demand, although it can be improved, is still difficult to have high growth to be able to consume the full capacity of existing factories. Therefore, enterprises are making efforts to complete the year's plan at the highest level (maintaining 70-80% compared to the set plan).

To complete this goal, cement enterprises are strengthening the implementation of solutions to find and expand domestic and export consumption markets; saving, preventing waste to reduce product costs... However, that is only a temporary solution. To help construction material enterprises in general and cement enterprises in particular to truly overcome difficulties, there must be macro-level and fundamental solutions to unclog the construction market.