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Mid East contruction export target
The United Arab Emirates and Saudi Arabia are considered as potential import markets for Viet Nam's construction materials.
According to the Viet Nam Chamber of Commerce and Industry (VCCI), since 2006, more than 2,000 construction projects have been implemented in countries in the Middle East, of which the UAE and Saudi Arabia accounted for 29 per cent and 30 per cent, respectively.
The two countries alone use 15-20 per cent of total number of cranes in use worldwide.
However, local producers have only partly met increasing demand for construction materials. The cost for construction in the Middle East is estimated to have increas 20 per cent annum in recent years.
"There is high demand for imported construction materials in the Middle East. This is an opportunity for Viet Nam's construction material export enterprises," said Tran Van Huynh, chairman of the Viet Nam Construction Materials Association.
However, for Vietnamese construction materials enterprises to effectively enter these markets, they need to directly survey the market and find local counterparts. In addition, they will also need to participate in construction material fairs in the UAE and Saudi Arabia, according to the Viet Nam Trade Promotion Department.
Among the construction material exhibitions and fairs, the Big 5 International Building and Construction Show which takes place in Dubai, Abu Dhabi is one of the most prestigious fairs in the Middle East. It brings together investors, importers, agents and distributors in the Middle East and global construction materials and real estate sectors.
With the intention of supporting business opportunities and enhancing the export of construction materials to the markets, the Government will aid enterprises participating at the Big 5 – International Building and Construction Show 2010, with subsidised stall rent (Stall rental prices at the fair are US$570 per square metre) and the costs of promotional material for the two potential markets.
In 2009, Viet Nam's construction materials export turnover was estimated to reach US$230 million, including construction glass, tiles and sanitary ware. This year, Viet Nam plans to earn $350 million from construction material exports, according to the Viet Nam Construction Material Association.
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