Construction material prices recover along with economy post-COVID
Prices of construction materials such as steel, bricks and sand are recovering post-pandemic, hitting contractors’ profits.
Cao Van Hong, a contractor, told Thanh Nien newspaper that the cost of construction materials had been rising for the last few months.
Associate Professor Ngo Trí Long, former rector of the Ministry of Finance's Price and Market Research Institute, said prices were up by around 20 per cent year-on-year.
Steel, which accounts for 20 per cent of the cost of a building, has increased by 40 per cent.
Construction sand is becoming scarce in the Mekong Delta, a major supplier, and buyers wanting large quantities have to wait for a month and often pay more than the originally quoted price.
Le Nhu Thuy My, director of the Nhan Quoc Ceramic Tiles Company in Dong Nai Province, said there had been a slight increase in ceramic tile prices due to a rise in packaging costs and the rising electricity, petrol, coal, and transportation costs.
The spike in costs is forcing contractors to increase prices or delay work to prevent losses.
Nguyen Quoc Hiep, chairman of the Viet Nam Association of Construction Contractors, said many contractors signed fixed-price contracts and so took a hit when costs rise.
Construction accounts for nearly 10 per cent of Viet Nam’s GDP.