The construction materials industry is facing a host of difficulties as a result of the frozen real estate market, high interest rates, high taxes, and a shortage of capital at businesses to boost production and trade, according to analysts.

In the first five months of this year, cement production and consumption fell around 20 per cent year-on-year, figures from the Vietnam Cement Association show.

Steel producers faced a similar problem. Production of crude steel in the first four months was down 22 per cent year-on-year. Meanwhile, consumption and exports have also been on a decline, falling 18 per cent and 78 per cent year-on-year, respectively, according to General Secretary of the Vietnam Steel Association Dinh Quoc Thai.

Production output in the ceramics industry has fallen 30-35 percent, or about 50-60 per cent of the total manufacturing capacity, said Dinh Quang Huy, Chairman of the Vietnam Building Ceramics Association.

A representative from the Vietnam Concrete Association proposed the government adopt policies to deal with legal obstacles to help move construction projects forward and help boost demand for building materials.

The government should also introduce measures to promote the disbursement of public investment capital to boost the implementation of public projects, creating the conditions for the construction materials market to recover.