Material prices skyrocketed, construction businesses proposed to remove difficulties

Material prices skyrocketed, construction businesses proposed to remove difficulties

 In 2022, construction enterprises believe that it is necessary to quickly stabilize the prices of input materials, have easier access to capital, facilitate open bidding, and accelerate disbursement of public investment.




The General Statistics Office (Ministry of Planning and Investment) has just conducted a survey with 6,975 construction enterprises in 63 provinces and cities.


The results of the investigation show that, although the social distancing measures on a large scale have been lifted, the Government has changed the Covid-19 epidemic prevention and control strategy from the state of "Zero-Covid" to "adaptation". safety, flexibility, effective control of the Covid-19 epidemic", has had a positive impact on production and business activities of the business community.


However, entering the year 2022, the operation of construction enterprises still faces many difficulties due to lack of skilled labor, lack of capital, high price of raw materials, causing great disadvantages for enterprises due to the signing of the contract. construction contracts at a time when the price of raw materials is not high.


According to the survey, up to 51% of enterprises forecast that production and business activities will be more difficult in the first quarter of 2022 than in the fourth quarter of 2021; nearly 28% of enterprises said that it would be stable and only 21.3% of construction enterprises had a more favorable forecast.

In which, production cost per product unit will increase in the first quarter of 2022 with the rate of 52.8% enterprises agree; 27.7% forecast unchanged and 19.5% forecast lower production costs.

More specifically, in terms of direct raw material costs, up to 54.1% of enterprises forecast the cost of raw materials to increase in the first quarter of 2022 compared to the fourth quarter of 2021; 27% of businesses forecast unchanged and 18.9% forecast a decrease.

Labor costs in the first quarter of 2022 compared to the fourth quarter of 2021 are also forecasted to increase by 43.9% of enterprises; 36.8% of enterprises forecast unchanged and 19.3% of enterprises forecast a decrease.


To be able to restore and resume production and business activities in the near future, the construction contractors made 5 recommendations.

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