As the authorities strictly control load capacity of road vehicles recently, prices of transportation as well as building materials have gone up...
As the authorities strictly control load capacity of road vehicles recently, prices of transportation as well as building materials have gone up.
From early May, building materials, including iron, steel, cement, brick and sand have seen sharp increase in price. For example, each brick with Tuynen brand name has risen from VND500 – VND600 to VND800 – VND1,100. Locally-made cement Nghi Son has gone up from VND1.6 million/ton and VND1.7 million/ton while Hoang Thach Cement has increased to VND1.6 million/ton from VND1.5 million/ton. Cement imported from Thailand and Malaysia also has risen from VND165,000 to VND180,000/40-kg bag. Steel has been up by VND100 – VND150/kg. Tiles of kind have made 12 – 18% increase.
“Transport cost from Ho Chi Minh City to Nha Trang has risen from VND800,000/ton to VND1 million/ton (excluding VAT). Therefore, products’ prices also have been put up. Consumers have to bear more expense”, said Le Kim Quy, director of a building material trading company in Nha Trang.
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The high prices of building materials also made deep impacts on projects, works and housing market. Their cost is forecast to go up more.
Nguyen Ngoc Thanh, director of CMC Construction Management Corporation, said, “One of our works is prone to loss as expenses for building material have risen by 7% - 15%.”
“Expense for building materials often makes up 60 – 70% of the total cost. The sharp rise in their price may cause entrepreneurs like me a lot of difficulties. If we cannot negotiate with investors, some are forced to renounce works despite penalty.
According to some building material traders, density of construction in the province has increased by 15% - 20% over the beginning of the year. Additionally, the National Way 1A expanding project also partly promotes construction demand. Consequently, the soar in price of building materials surely will influence much on people who intend to build house, entrepreneurs and investors for big works.
T.T
