Inventory concerns

(Baonghean) -The frozen real estate market, the impact of Resolution 11, many projects have been cut down, stopped construction, etc., making the output of many products such as bricks, tiles, iron and steel difficult. Many businesses are having a headache with inventory, while input costs are increasing.

We had to make five or seven appointments to meet the Chairman of the Nghe An Brick Association, who is also the Director of Hung Nguyen Brick and Tile Joint Stock Company - Mr. Nguyen Xuan Thanh. The reason was: he was busy selling bricks. Selling bricks in the true sense of the word. One day he said he was in Nam Dan, another time he was in Cua Lo, when asked if the sales department was in charge of that, he explained: with the current sluggish business, how can the director sit in the office to sell the products? At times like this, all departments must get involved, approach customers to solve the output. Mr. Thanh said: Although the price has decreased compared to the same period, consumption is still very slow. The capacity of 30 million bricks/year, only operating at 70% of capacity, but currently there are over 5 million bricks left. Mr. Thanh also added that most of the 22 units under the association are in a state of product backlog.

Hung Nguyen Brick and Tile Joint Stock Company - one of the enterprises considered to be "efficient" is facing the reduction of brick production lines. In that situation, many workers have "left" and joined a nearby garment factory. Production and business are difficult, and wages are owed, so keeping workers is also a difficult problem for this enterprise.

Check products at 22/12 Brick Joint Stock Company

At 22-12 Brick Joint Stock Company, Mr. Nguyen Xuan Thuy - Director of the company, said: Not only the company's employees but also outsiders are encouraged and motivated, if they sell to businesses, they will receive "commission". The company's current brick price has decreased by nearly 20% compared to the same period last year, this year we have to accept a decrease in profits, try to hold on to production, wait for the market to improve and maintain stable wages for workers.

A report from the Department of Industry and Trade shows that, compared to the same period in 2011, the industrial production development index of the whole province in the first 10 months of 2012 increased by 8.49%, while the production of construction materials generally decreased, cement 1,114 thousand tons, down nearly 20%; standard bricks 489 million pieces, down 12% compared to the same period... It is known that many enterprises have to operate at 50-70% capacity to reduce inventory and in addition to difficulties due to inventory, some enterprises are also struggling because they are losing the ability to balance their finances. Long storage time means the burden of interest on loans is even greater for enterprises. The capital source of most construction material production projects is loans, low equity capital, so the problem of large financial costs, foreign currency devaluation, interest rates... is weighing down on enterprises. Therefore, to maintain production, construction material enterprises are having to find new directions for themselves. Companies have had to cut costs to the maximum and increase marketing. For example, working hours have also been changed to avoid using electricity during peak hours, which will lead to increased costs. Mobilizing many sales people, even directors are willing to approach is also a way to overcome current difficulties. In particular, on the one hand, we have to understand the difficulties of customers to support and cooperate, but on the other hand, we have to increase debt collection from customers to reduce capital costs...

It is currently the construction season, but the purchasing power of a series of construction materials is still low, causing the inventory index to continue to be high. In order to avoid capital being tied up in inventory, businesses have had to continuously adjust their production plans. More than ever, it is very necessary to remove difficulties for businesses in terms of capital, raw materials, production premises and product output. Therefore, relevant sectors need to focus on directing and implementing Resolution No. 13/NQ-CP of the Government on a number of solutions to remove difficulties for production and business, support the market, and help businesses maintain and develop production.

Thu Huyen