‘Basic construction cost per square meter increased by 150%’

At a talk show by VnEconomy Recently held, Mr. Nguyen Quoc Hiep, Chairman of GP.Invest, Chairman of Vietnam Construction Contractors Association said that construction contractors are being heavily affected by the difficulties of the real estate market. As reflected by construction businesses, if the current situation continues, there will be no contractors in 5 years.

Exchange with Partner, some investors and contractors who asked for permission not to give their names pointed out that the price storm of construction materials has greatly affected the operation of the business. Although previously, businesses had planned for additional costs, but did not anticipate the complicated movements of the market. Mr. Hiep said, along with the impact of the Covid-19 pandemic, the market had just witnessed 2 the “price storm” of construction materials. For example, iron and steel prices in the months of the second quarter increased by about 7% compared to the first quarter of this year. Construction enterprises and contractors are in short supply and it is difficult to find workers. If before, the price per m2 basic construction For low-rise buildings with only 4 million VND, now to accept the contract, businesses have to receive 6 million VND per m2, an increase of 150%.

At the CEO Group’s Annual General Meeting of Shareholders held recently, when shareholders requested the leadership to strictly fulfill the commitments made in terms of development strategy, revenue and profit, Chairman of the Board of Directors Doan Van Binh awarded At this time, the real estate market has difficulties. In particular, the increase in the price of construction materials in recent years is one of the problems affecting the revenue and profit of this unit.

According to information from the Ministry of Construction, in the first quarter, construction steel prices in Vietnam tended to increase sharply according to world prices. Starting from mid-February until now, the domestic construction steel price has started to increase by about 600 -1,200 VND per kg. As of mid-March, steel prices increased by 3.5% and 7.5%, respectively, compared with prices in February and January. Until the beginning of April, construction steel prices have not “cooled down.” On average, in the first quarter, the price of construction steel of all kinds was about VND 18,890/kg, up 3.5% compared to the end of last year.

Similarly, cement prices increased 1-3% compared to the fourth quarter of last year and increased 11-15% over the same period. In addition, the supply of sand, embankment, and construction stone is scarce due to high gasoline prices, affecting transportation. The Ministry of Construction also forecast that in the coming time these materials will increase in price.