State-owned building firms prosper

State-owned enterprises managed by the Ministry of Construction saw a 23 per cent increase in earnings during the first eight months of this year, worth a combined VND93.4 trillion (US$4.9 billion).

The best-performing firms included Viet Nam Glass and Ceramics for Construction (Viglacera), which saw growth in profits of 67.4 per cent, Song Hong Corp (54.6 per cent) and Viet Nam Machinery Erection Corp (29.7 per cent).

Construction projects worth VND41.1 trillion ($2.1 billion) were completed during the first eight months of the year, an increase of 24 per cent in value over last year, the ministry said.

Meanwhile, construction materials were produced worth VND33.6 trillion ($1.76 billion), 30 per cent more than during the same period last year.

About 32.5 million tonnes of cement or 65 per cent of the yearly target was sold during the first eight months. The ministry forecasts that local demand for cement would reach 50-51.5 million tonnes, up 11 per cent against last year.

Export value during the period totalled $111 million, 72 per cent of the yearly target, the ministry said.

The ministry also reported that the construction sector imported materials and equipment worth $219 million.

Deputy Minister of Construction Nguyen Tran Nam said a number of measures were being considered to boost growth this year to 14-15 per cent, while reducing reliance on imports.

The ministry has already ordered enterprises under its supervision to use domestically produced construction materials whenever possible.

Other measures to boost profits include controlling costs and better management of material resources to stabilise production, Nam said.

Enterprises should also improve distribution of building materials to avoid speculation and stabilise prices, he said. — VNS

Tags: Song Hong Group, Viglacera