Bright Prospects for the Building Materials Industry in 2024 Despite Current Challenges

The building materials sector, after facing a downturn in production and consumption, is expected to see a recovery by mid-2024, with strategic business plans and environmental-friendly innovations leading the way.

Bright Prospects for the Building Materials Industry in 2024 Despite Current Challenges
Photo by Ruslan Bardash / Unsplash

Vietnam: The building materials industry, particularly in the cement and construction sector, experienced significant setbacks starting from 2022. This downturn was primarily due to the challenges in the real estate market, leading to delayed projects and a decrease in product consumption. According to the Ministry of Construction's report, the cement production in 2023 was estimated at 89.4 million tons, a 5.45% decrease from 2022, with domestic consumption dropping by about 10%.

Despite these challenges, companies like Viglacera Corporation and Vicem are adopting cautious business strategies for 2024. These include close market monitoring, production adjustments based on demand, cost reduction, inventory management, and a strong focus on restructuring both products and company management. Emphasis is also being placed on developing environmentally friendly products like energy-saving glass and autoclaved aerated concrete blocks.

The government's push for public investment, particularly in infrastructure projects like the North-South Expressway and Long Thanh Airport, is expected to benefit the industry significantly in 2024. Additionally, legislative amendments related to real estate and investment are anticipated to positively impact the building materials sector.

Pham Tuan Linh, Deputy Director of Module 9 Company, highlighted the need for continued government measures to stimulate demand and support domestic product consumption. He also emphasized the importance of marketing and exploring new export markets to overcome the current difficulties.