Production and consumption of construction materials in 2021 have a positive outlook

The real estate market is considered to have many positive signals in 2021, creating a foundation for the building materials industry to have the opportunity to increase production and consume.

According to statistics of the Ministry of Construction, as of October 31, 2020, the consumption situation of some specific building material products: quantity of cement consumed sales reached 74 million tons, construction glass reached 171 million m2, sanitary ware reached 12.8 million products, paving stone reached 12 million m2, ceramic tiles reached 452 million m2, industrial lime reached 1.5 million tons , fibro cement roofing sheets reach over 33 m2.

Mr. Pham Van Bac, Director of the Department of Building Materials (Ministry of Construction) said that Covid-19 has impacted many areas of the economy. However, with the epidemic under control, Vietnam’s economy is forecasted to have positive growth. This is a positive signal in the context of negative growth in many countries around the world.

For the building materials industry, despite the impact of Covid-19, the business results recorded positive numbers. All construction material products are still in stable production, although productivity and output have decreased compared to the same period last year, most of them have positive growth. Particularly cement has not only achieved the goal of domestic production but continued to be exported.

In the first 11 months of 2020, cement and clinker exports have reached over 35 million tons, worth $1,320 billion, up 15.6% in volume and 5.4% in volume. value. Estimated exports of cement and clinker this year will exceed 38 million tons.

Forecast of the construction materials industry in 2021, a representative of the Ministry of Construction said that the real estate market is considered to have many positive signals in the coming year. . This is an opportunity for the construction sector to continue to thrive.

For example, the steel industry, in the past 11 months, this industry is still maintaining a positive growth rate. In November 2020, crude steel output was estimated at 4,098.4 thousand tons, up 17.4% over the same period; rolled steel was estimated at 1,048.2 thousand tons, up 45.8% over the same period; bar and angle steel was estimated at 1,140.9 thousand tons, up 30.9% over the same period. In the first 11 months of 2020, crude iron and steel production output; rolled steel; bar steel and angle steel increased by 4.9%, respectively; 13.4% and 11.6% over the same period last year.

Vietnam Steel Association (VSA) said that, along with production and business being maintained, consumption of construction materials will start again at the end of the third quarter of this year. Because many construction projects are being completed quickly, it has created significant advantages for businesses in the industry to promote consumption. It is expected that the construction steel market will prosper because in the short term, the domestic market will have more steel consumption demand in the last month of 2020, creating a good growth momentum for 2021.

Report on assessment of residential real estate market prospects for the period of 2021-2022 by Viet Capital Securities Joint Stock Company (VCSC) stated that Vietnam is One of the fastest growing economies in the region, whereby the upper middle income class will tend to increase sharply, the household size will be smaller, boosting demand for first home buyers. Vietnam will also experience high housing growth thanks to rapid urbanization and high urban population, when it is estimated that the average urban population increases by about 1.1 million people per year, resulting in is the demand for about 314,000 new apartments/year during this period.