Introducing the ‘Vietnam Value’ Program
In the early years of the 21st century, Vietnam’s economy has made strong development steps, especially in the field of construction infrastructure. Production has met the construction needs and has a surplus of about 10 – 30% of the construction work capacity for export. The volume of construction materials has grown strongly, with modern technology and increasingly high quality, meeting market demand, making a significant contribution to GDP growth, and playing an important role in the economy.
The production capacity of Viet Nam building materials industry is about 2 to 3 times as high as 10-15 years ago. Product designs are diverse and abundant, product quality meets the standards of developed countries to meet the needs of the domestic market and export to the world market. Viet Nam ranks the 5th in the world in terms of cement production (after China, India, USA, Russia) and among the top 20 countries with the highest steel production volume in the world.
In 2020, the steel production reached approximately 24.15 million metric tons in Viet Nam, indicating an increase of over two million metric tons from 2019. The production volume of steel in Viet Nam has increased year on year within the observed timeline.
Currently, Vietnam’s cement industry has 90 clinker and cement production lines with a total capacity of 107 million tons per year, with 80% clinker and 20% additives. The actual capacity is about 120 million to 130 million tons of cement, with 70% clinker and 30% additives. At this scale and capacity, the cement industry is being considered to have a dominant role on markets in the region. In the world market, Viet Nam is ranked 5th in terms of cement production capacity, after China, India, USA and Russia, and Viet Nam construction materials have been shipped to over 120 countries and territories worldwide.
Despite the COVID-19 pandemic, Viet Nam exported 9.86 million tons of steel worth US$5.26 billion in 2020, up 47.9 percent. Among the 10 largest export markets, the export turnover to China, the Philippines, Taiwan, and India hiked by at least 30 percent. The demand for investment in factories and industrial parks is increasing strongly, leading to an increase in the demand for construction steel in 2021.
Vietnam’s cement industry expanded by 0.9% in 2020, mainly driven by buoyant clinker 25 and cement export activity. As new export destinations continue to be explored, leading private cement firms to look to develop new facilities to meet demand from overseas, while the domestic market still holds much long-term potential for growth.
‘Vietnam Value’ Program
In a modern economy, the greater brand names of a country dominate the international market and boost the strength of that country. Recognizing the importance of branding to a country in the globalization process, the ‘Vietnam Value’ Program, launched in 2003, is the Vietnamese Government’s unique and long-term trade promotion program aiming to build Viet Nam’s image as a country of high-quality products and services, to increase pride and attraction of Vietnamese country and people, to boost foreign trade and national competitiveness.
The long-term and unique trade promotion program of the government has a different approach and brings value to enterprises. The program was approved by the prime minister and carried out by the Ministry of Industry and Trade (MOIT) and related ministries and sectors, so the level of prestige is very high, and the products even reach recognition in the National Assembly of Viet Nam. Participating companies must go through a strict and transparent selection process according to the administrative procedures specified in the prime minister’s Decision No.30/2019/QD-TTg from 2019 and the criteria system of the MOIT.
The program is not only an award but also a selection of products which make enterprises become partners of the program. The state does not act for businesses but will stand out to sponsor quality and reputable brands, so that Vietnamese enterprises can create a strong foothold in the domestic market and promote brand development on the global stage.
Twenty Construction Materials companies made the list of 2020 Vietnam Value’s Companies:
- Austdoor Group Joint Stock Company
- Dai Thien Loc Corporation
- Dat Hoa Plastic Limited Company
- Dekko Group Joint Stock Company
- DongNai Brick and Tile Corporation
- EuroWindow Joint Stock Company
- Hoa Phat Group Joint Stock Company
- Hoa Sen Group
- Hoang Lien Son Technical Ceramics JSC.
- Minh Phu – Hai Duong Steel Joint Stock Company
- Nam Kim Steel Joint Stock Company
- Secoin Joint Stock Company
- Tan A Dai Thanh Corporation Investment JSC.
- Tien Phong Plastic Joint Stock Company
- Ton Dong A Corporation
- TVP Steel JSC
- Vicostone Joint Stock Company
- Viet Dung Aluminum Joint Stock Company
- Viglacera Corporation
- Vina One Steel Manufacturing Corporation.
Source: Vietnam Embassy, The Hague
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