[ad_1]
The high investment rate and slow product consumption have put building materials companies under great pressure to repay debts and pay interest on bank loans.
The Ministry of Construction stated at a press conference on June 15 that the current financial situation of building materials manufacturers, especially cement companies, is still difficult as they have to invest huge amounts of money in production projects.
Therefore, the Ministry of Construction stated that in the initial stage of factory production, enterprises need to pay higher principal and interest, and the debt repayment pressure is relatively large.
Recently, the slow consumption of products has also caused many businesses to stop production of some product production lines. This has made it very difficult for financial cash flow to repay bank debts and production raw materials and fuel costs.
“Many building material factories, especially cement groups, have low production efficiency and losses, leading to bad debts,” the Ministry of Construction said.
To address this issue, Prime Minister Pham Minh Chinh has instructed the State Bank to review and revise regulations on freezing, extending and reducing bank interest rates on corporate debts to suit the financial capabilities of businesses.
Prime Minister Pham Minh speaks at a conference on the building materials industry on May 16. Image: Virtual GP
For enterprises, the Prime Minister asked them to reorganize their funding sources and reduce costs to ensure cash flow to pay bank debts and production costs. “Enterprises should use funds flexibly.” He stressed that short-term funds should not be used for medium- and long-term investments.
At the same time, companies discussed with banks to block, postpone and set up a debt repayment schedule; using funding sources to pay off old loans with high interest rates, borrow new loans at low interest rates, and reduce financial costs.
The Prime Minister also asked enterprises to restructure their management, finance, investment and input materials to improve product quality, efficiency and competitiveness.
“In-depth investments in technology and equipment will reduce production costs, save energy, natural resources, protect the environment and reduce emissions,” he said, adding that it would also help improve productivity, quality and reduce product costs.
Enterprises must review the sales agency system; reduce the parts and intermediate links from manufacturing plants to consumers; appropriately reduce sales costs. At the same time, they need to seek and expand markets and increase exports to many countries in the world.
The total annual revenue of the building materials industry, including cement and steel, is estimated to be nearly US$47 billion, accounting for about 11% of the national GDP.
The Prime Minister asked all ministries and localities not to push or avoid, but to focus on handling and solving the production and consumption problems of cement, steel, and building materials in 2024, which will be conducive to economic and social development, growth, and economic and social development in 2024. In the next few years.
In particular, the Ministry of Finance, the Ministry of Natural Resources and Environment, and the Ministry of Construction studied specific incentive policies for factories producing cement and other building materials if they use waste as a substitute for fuel, and use alternative materials such as industrial waste such as ash, slag, artificial gypsum… in cement production.
All ministries and commissions should improve tax policies to encourage domestic production and restrict imports as soon as possible. The Ministry of Construction will study trade protection and anti-dumping measures for imported tiles, sanitary ceramics and architectural glass products.
The Ministry of Transport guides investors to use reinforced concrete viaduct solutions in highway projects, based on careful calculations, suitable for each project and route section to ensure maximum efficiency.
Fang Yong
[ad_2]
Source link
