Stock replenishment, vice president sales must go

11:59:00 18/07/2012

Meanwhile, input prices continued to increase, there are times this cost increase of 10% of total production costs. So, May 4/2012 the company was forced to raise prices increased by 8%. Much inventory, deputy general manager personally known companies such as Thach also have to sell.

Real estate market is quiet, the subsequent mass production is stalled building materials, inventory accumulation, with no buyers.

Thach Ban Joint Stock Company, one of the businesses are considered "work efficiently" are faced with cutting brick production line in the near future.

According to Nguyen Trong Kien, Deputy Director General Thach Ban Joint Stock Company, the company's inventory accumulation is still about 2 months of production, consumption of bricks and only 70% over the same period last year.

Meanwhile, input prices continued to increase, there are times this cost increase of 10% of total production costs. So, May 4/2012 the company was forced to raise prices increased by 8%.

However, due to bleak market, along with the major competition of other ceramic products, should come last June, the company Thach 8% forced to accept the price and an additional commission for agents.

"This year we have to accept losses, there are expected to plant about 10 billion hole, break some plants, but will try to hold production for the market going up and wages remain stable the workers, "he said Kien.

Ha Long Viglacera also struggling. If in 2011, the company nearly 70 billion profit, you I/2012, the company nearly 84 billion hole.

Exchange opinions on the current difficulties, Deputy General Director Nguyen Van Sinh Viglacera company said that the consumption of building materials companies on average only 65% compared to production capacity.

Hàng ế đầy kho, phó tổng giám đốc cũng phải đi bán hàng

Most building materials industries such as cement, steel, brick, ... are large inventories

Hiện lượng hàng tồn kho đang ở mức cao. Cụ thể, tính đến quý I/2012, kính xây dựng tồn đọng khoảng 6 tháng sản xuất; gạch ốp lát khoảng 2 tháng sản xuất; sứ vệ sinh khoảng 300.000 sản phẩm, tương ứng 3 tháng sản xuất và gạch ngói đất sét nung là khoảng 2 tháng sản xuất.

Theo số liệu thống kê, tồn kho gạch ốp lát đầu năm 2012 đã tăng lên tới 20% với khoảng trên 40 triệu m2 gạch ốp lát và trên 1 triệu sản phẩm sứ vệ sinh, tương đương khoảng trên 3.000 tỷ đồng.

In the field of steel production, inventory is quite large. According to a survey of HSC Securities Company, at the end of May, Employee (POM) was 40,000 tons in stock.

Mr. Do Duy Thai, POM company representative said, was caused by global steel consumption market is down about 20% over the same period last year. Interest rates decline but only a few large enterprises borrow capital at low interest rates, while the distributor is still subject to high interest rates.

Inventories of Hoa Phat Group (HPG) at the end of May was 17,500 tons (in steel production in the 10-day production of the Company), down 24% over the same period last year and down 49% compared to year.

According to the Vietnam Steel Association, steel inventory is 315,000 tons, despite a reduction of 22% over the same period last year and down 11% from a year earlier, but still have steel inventories down 20% more to the level normal is 250,000 tons.

In the field of cement production, the first 5 months of 2012, production reached 19 million tons, down 16.8% over the same period in 2011 (22.2 million tons), cement consumption reached 18.495 million tons, down 10.6% over the same period in 2011 (20.681 million tons), plus accrued amount exists from 2011, the amount of clinker, cement stock is still about 3 million tons (3,000 billion) .

"His gong" to live

Explaining large inventory of construction materials business, Mr. Dinh Quang Huy, President of Vietnam Construction Ceramics, said the business is sold only about 70-75% of products made out.

"Frozen housing market, credit for real estate loans were tightened and excessively high interest, making the need to build strong decline, thereby adversely affecting a tile manufacturing industry", Thang said.

According to Mr. Le Van Toi, Head of Building Materials (Ministry of Construction), the main cause is due to the loss of business is financial balance, but not necessarily be due to inventory.

Most of the capital projects construction materials production are loans, equity too thin, so the danger of the enterprise, especially the production of cement enterprises is a matter great financial cost, sliding foreign exchange, interest rate ...

To maintain production, the construction materials business is to seek new directions for themselves. According to Nguyen Trong Kien, Deputy Director General Thach Ban Joint Stock Company, the company had to cut up all the costs and increase marketing.

For example: saving fuel by instead of using diesel oil, then mixed with vegetable oil. Working hours have been changed, to avoid using electricity during peak hours, the cost will increase (electricity costs account for about 5.3% of production costs).

"Also, if earlier, the access client is the job of the agent, then Vice President now also available to access. In particular, to learn the customer's hard to support, cooperation, "he said Kien.

But Mr. Nguyen Tuan Duong, Vice President of the Board and CEO of the Hoa Phat said, Hoa Phat Steel is operating with 70% power to reduce inventory and this solution will be maintained for 3-6 months.

According to Yang, the possibility of the end of this year, prices will move sideways or up, but sales will not increase. Thus, enterprises have reduced production and reduce imports.

Also choose to maintain a capacity of around 70-80% to reduce financial costs, but JSC Vietnam Germany Steel Pipe also go the other way is to increase debt recovery customers to reduce capital costs.

Mr. Le Phan Duc, Chairman of the Board Company, said the company will ask customers to pay immediately or only short-term debt. In addition, the company will further develop the export market to solve the inventory.

Theo Châu Anh

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