Role of the brick industry

Along with other construction material industries, the brick industry is developing rapidly to satisfy the growing needs of urbanization, industrialization and civil engineering. State enterprises and joint-stock enterprises play the leading role in technology development, but they share only 35 % of the total annual production. Whereas, enterprises of the private sector and business households contribute up to 65% of the total annual production. [Brick industry report, AIT, 2003]

Current development and role of the brick industry in the economy

At present, in the brick industry of Vietnam there are more than 300 brick manufacturing enterprises using tunnel kiln technology. Among these, 100 enterprises belong to the state sector and the other 200 belong to the private sector. In addition, there are thousands of manufacturing units using traditional kilns and nearly 250 enterprises using vertical shaft continuous kilns (VSCK). [Brick industry report, AIT, 2003]

The whole industry produced:

-         In 2000: 9,087 million pieces, of which 6, 706 million pieces were produced by the private sector

-         In 2005: 16,728 million pieces, of which 13,906 million pieces were produced by the private sector

Location of brick manufacturing enterprises

Brick manufacturing enterprises are present in all provinces and cities in the country. They are often located in rural areas, along riverbanks, swamps, lakes, where clay sources are available. Various types of kilns like tunnel kilns, traditional kilns, or VSCKs are being used. Brick manufacturing enterprises use local raw materials and labor, and make a positive contribution to the shift of agricultural and rural economic structure.

Brick industry development plan for the period from 2000 to 2010 [Ministry of Construction, 2005]

Objectives:

The objectives are to select and apply suitable technologies and production scales, explore and utilize effectively sources raw materials and labor to respond to the domestic and exports demand. In the next 5 years, it is targeted that the brick industry will reach the average annual output of 20 billion bricks of proper quality and environment standards.

 Directions:

a) For technology

Advanced technologies in the world should be applied in combination with domestic technology and equipment, creating modernized and mechanized production, ensuring that products will reach Vietnam’s and international environment standards, particularly Vietnam’s standards and ISO standards for raising competitiveness in the regional and world markets.

b) For production scale

Production should be developed in suitable scales, which can be combinations of small, medium and large scales to explore the capacities of existing production units. The brick industry needs restructuring towards modernization; proper and effective utilization of raw materials, energy and labor; higher protection of biological environment, historical and cultural heritage, ensuring national security and defense. The brick industry should be developed in harmony with the transportation, the materials and technique supplying and the infrastructure sectors. The capacities of other related industries such as mechanics, metal processing, informatics, and cybernetics should be explored to study, design, and manufacture brick making machines and equipment that can replace the imports.

c) For location

Investment in improving the technology in enterprises that are using tunnel kilns should be continued. At the same time, investment in new brick making enterprises using tunnel kilns with capacity of over 10 million bricks per year should be made to take full advantage of the available hilly and riverside soil.

Enterprises are stimulated to apply VSCK in efforts to abandon all traditional handicraft kilns in all provinces by 2010.

Adobe production should be developed. It is planned that the production will contribute 30% of the total construction brick output by 2010. In flooded and weak based areas, especially in the Mekong delta, it is necessary to put more investments in production of light construction materials and wallboards as substitutions for fired bricks and adobes.

d)     For investment mobilization

The brick industry can attract diversified investment sources from different economic sectors and from abroad. Investment projects have to be managed and implemented in accordance with the development plan and characteristics of the localities.