In a situation of rapidly increasing production capacity, Vietnam's float glass sector attracted debate on the fear of under utilisation capacity, if the building and construction industry does not achieve a supporting growth in the next few months of 2011 and in 2012. A double digit inflation rate, high energy costs and exorbitant bank interest are some of the major difficulties that Vietnamese flat glass manufacturers experience today, thus, preventing demand from increasing. The Vietnamese government is now implementing measures to tighten the money market, adjust growth rate goals, reduce public investment and curb inflation. "Most affected sheet glass factories are now out of business, while float glass plants are still able to stay in the market and wait for higher demand," said a high official of the Vietnam Glass Association, VIEGLASS. However, according to VIEGLASS, the future is positive and has forecast that by 2016, Vietnam will need 178M sq/m of standard float glass as the annual market is growing by about 8-10%, with improvement of the economy and associated increases in building construction and housing throughout the country. To meet future market demand, Vietnam has been increasing production capacity steadily.
