Construction glass sector confident about regional competition

The domestic construction glass industry is confident it will be able to compete under the ASEAN free trade area when import tariffs are shattered to under 5 per cent.

The industry has not yet been touched by the ASEAN Free Trade Area (AFTA) as tariffs remain at a high 20 per cent, but by 2006 these will be slashed to between 0 and 5 per cent.

Construction glass producers believe they can cut prices by 20-30 per cent to produce glass which will be 10-20 per cent cheaper than current import prices. Nguyen Anh Tuan, head of the planning and investment division at the country’s biggest glass and ceramic producer, Viglacera, said Viet Nam’s use of modern technology and cheap labour costs would put them ahead.

He said domestic producers also have the advantage of understanding Vietnamese customers’ taste and the convenience of an established distribution system.

Viglacera general director, Dinh Quang Huy, said the corporation’s new plants are already producing competitively priced glass, as evidenced by US and South Korean sales last year of 20 million sq.m.

Huy said demand for the products from the company’s Binh Duong Float Glass Plant exceeded supply. The plant has already sold 8 million sq.m of white construction glass this year, up 398.5 per cent.

However, fledgling construction glass producers will be disadvantaged compared with their more established ASEAN counterparts, according to the Viet Nam Float Glass Joint Venture’s marketing director, Akihiro Senda.

Most companies have felt little or no change in sales since the first AFTA cut was implemented on July 1.

They attributed the stability to the AFTA tariff cut being made outside Viet Nam’s peak construction season. Companies have predicted that sales will surge in the next two months as the construction season approaches, however, prices will change only slightly.-Enditem

600450 Construction glass sector confident about regional competition

See more news about:

Others also read

Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.

Add new comment