Vietnam: Glassmakers Prefer To Keep It Local

Date: 16 January 2008
Source: Viet Nam News

Date: 16 January 2008

Most construction glassmakers are paying attention to meeting local demand rather than promoting exports, said local leaders in the industry.

Viglacera Float Glass Co deputy director Luyen Cong Minh said that the company posted a modest export value of only about US$5mil last year despite having several orders at far higher value. He pointed to the high prices fetched on the domestic market compared to export prices as a major reason for his poor export turnover.

Viglacera Dap Cau Sheet Glass Joint Stock Co general director Nguyen Thanh Tri said the company allocated only 5-10% of its output for exports with the remainder destined for domestic partners.

Construction glass exports were considered a tool to regulate the market because enterprises only turned their thought to exports when local demand was low, Minh said.

Viet Nam Glass Association general secretary Le Minh Tuan also pointed out that the increasing price of raw materials and high transportation costs were major challenges that have made enterprises hesitant to boost exports.

Glassmakers have given top priority to the domestic market as local demand was increasing, but with the current growth rate it was a suitable time for glassmakers to step up exports, said Tuan.

To this end, they should take steps to further improve product quality, increase output and seek new markets for their products, he suggested.

Few glassmakers were able to produce high-quality float glass products sought after in international markets, leaving Cambodia and Thailand as the leading export markets.

Stepped-up operations at two plants producing high-grade construction glass in Chu Lai Open Economic Zone in Quang Ngai Province, and in Ba Ria-Vung Tau Province, with a combined capacity of 1,200 tonnes per day, would help raise the ratio of quality glass to 73%, the association said. The glass sector would then be able to move more boldly on strict markets like Japan, Singapore and the US, it said.

"Technological innovated, higher quality products and greater experience with strict export markets were the only ways for local glassmakers if they want to stay in business for a long time" concludes Tuan.

The country was presently home to seven construction glassmakers with a combined capacity of over 1,600 tonnes per day, meeting 80% of demand on the domestic market, according to the Viet Nam Glass Association.

Domestic construction glass has been exported to several markets, including Cambodia, Thailand, India, Philippines, Malaysia and South Africa.

600450 Vietnam: Glassmakers Prefer To Keep It Local

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