Prices of building materials and interior decoration have all increased. (Photo: nld.vn) In recentdays, steel manufacturers have continued to send notices ofhigher prices of all types of finished steel to customers.
According tothe announcement of Vinausteel Company, from March 5, 2022, it increasedthe selling price of rebar and coil to 400,000 VND.
On the sameday, Viet Duc Steel Production Joint Stock Company announced the samefor its customers in the northern and central markets.
Hoa Phat HungYen Steel Company Limited of Hoa Phat Group, and Tung Ho VietnamSteel Co. also announced increases to ensure production and businessactivities.
According tomanufacturers, the price of billet and raw materials has increased, so theenterprises adjusted the selling price of finished steel. The selling price ofsteel in the market exceeded 18 million VND per tonne.
Not onlysteel, but price of many other construction materials such as sand bricksalso increases.
In HCM City'smarket, most building material stores and interior decoration shops havequoted higher prices for materials.
Levellingsand is more than 200,000 VND per cu.m, building sand 400,000 - 450,000 VNDper cu.m, pipe bricks from 1,200 VND to 1,300 VND per piece, while cementprice was more than 90,000 VND per bag.
Previously,the seller of materials always shipped to customers, but now due to thehigh price of gasoline, the store requires buyers pay shipping fees
Interiordecoration items also increased. Ceramic tiles, wood imitation plasticpanels for the floor, laminate flooring, and water-based paint reportedhigher prices.
Hoang Minh Tien,owner of a building material store on Ly Thuong Kiet Street in Ho Chi MinhCity’s District 10, said last year, the price of building materials andinterior decoration all increased, with steel increasing by three tofour times.
Tien said thesteel price has increased to reach 20 million VND pertonne and believed their prices could rise in the near futurewhen gasoline prices increase sharply, leading to increased freight rates.
Arepresentative of the Vietnam Association of Building Materials told localmedia that due to the sharp increase in input costs, especially theskyrocketing price of gasoline, businesses had to increase their sellingprices.
Thai Duy Sam,Vice President and General Secretary of the Vietnam Building MaterialsAssociation, said: "Even with construction bricks, some manufacturershave just announced plans to increase the selling price by at least 100 VND perpiece compared to the end of 2021."
The VietnamSteel Association (VSA) believes that construction iron and steel prices tendto increase because the cost of imported materials is relatively high.
Some expertshave said that the Russia-Ukraine conflict could cause a supply shortage andincrease steel prices because Russia currently accounts for about 10 percent of the world's steel supply, while Ukraine is about 4 per cent.
In thissituation, a construction contractor in Thanh Hoa province said that thebusiness's activities were strongly affected. He said the price ofconstruction materials increased, labour costs also increased, making theconstruction of new projects difficult.
As most ofthe new projects signed were estimated from the end of last year when theinput prices had not fluctuated, his company had signed a fixed pricepackage, and he now faced many difficulties.
At the sametime, a representative of 207 Construction Joint Stock Company said that due tothe general influence of the market, the high price of building materialshad a significant impact on contractors' business performance.
"Evenfor bidding packages implemented under an adjusted price contract, according tothe coefficient announced by the local Department of Construction, theprices adjusted have followed the market," said a companyrepresentative.
According tothe Head of Market Planning Department of Vicem Hoang Thach Cement Company, thecompany has not adjusted the selling price of cement, but the company wasstruggling as the input costs for all production and business activitiesincreased.
Currently,coal for cement factories has also increased in price, not to mentiontransport costs have also risen sharply due to high gasoline prices.
He told localmedia: "If the situation of production costs continues to escalate beyondthe tolerance of businesses, we will certainly have to increase the sellingprice."
Tu Tuan Thanh,Director of Minh Tien Residential Construction and Repair Company (HCM City),said that the price of materials had increased continuously during the pastyear, coupled with the pandemic situation and a lack of workers.
Thanh saidthe situation forced him and many other companies in the same industry toincrease the raw construction price by about VNĐ1 million per sq.m to 5-6million VND each sq.m, making the finished cost increase to 8-9 millionVND per sq.m.
According tothe Indian based research firm Mordor Intelligence, Vietnam's constructionmarket was valued at around 60 billion USD in 2021, and the market wasprojected to register a growth rate of more than 8.71 percent during theforecast period (2022-27).
The firm saidthe country's construction industry was one of the best performing in theAsia-Pacific region, adding despite losing momentum due to COVID-19, ithad continued to grow strongly in 2021./.
VNA
