The slump in the property market has in turn led to stagnation in the construction and construction materials industries.
Sales was down by 40 per cent now compared with the same period last year, said Hoang Van Tieu, deputy director of the Hoang Thien Phat Ltd company, which sells luxury interior materials.
?Many importing companies like us are offering big promotions but we still cannot sell because construction has no hope in the near future,? he said.
Nguyen Kim Thuy, director of the Hoang Son Ltd company, said: ?We are looking at other markets like Malaysia, Cambodia and Laos, but if the local market remains at a standstill, we will have to trade other products.?
According to figures from the General Statistics Office, unsold stocks in the construction materials industry have increased by 21 per cent this year.
Some, like electric cables (86 per cent) and cement (84 per cent), have seen stocks rise by an astonishing rate.
There are also 30 million sq. metres of flowered enamelled tiles worth VND2 trillion (US$100 million) and 400,000 tonnes of steel in stock.
The Viet Nam Steel Association predicts around a fifth of all steel companies to go bankrupt this year since many big companies have had to cut production by 50-70 per cent.
Besides, the prices of major inputs like coal and electricity have risen sharply, causing manufacturers more difficulties.
Falling demand for their goods has been exacerbated by the loosening of controls on imports.
The construction materials industry wants the Government to tighten control over imports and help them tide over this difficult period.
For their part, it is vital to restructure production, work together within other industry players, build strong brands, cut costs, and improve their competitiveness. ? VNS
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