Logo of Phnom Penh Post newspaper Phnom Penh Post - HCMC construction materials market expected to benefit from huge demand

HCMC construction materials market expected to benefit from huge demand

Content image - Phnom Penh Post
Ho Chi Minh City’s (HCMC) construction materials market is expected to recover this year with the property market’s bottlenecks removed and large public construction works expected. VIET NAM NEWS

HCMC construction materials market expected to benefit from huge demand

Ho Chi Minh City (HCMC) is removing legal bottlenecks to the housing market and the Covid-19 pandemic is under control, factors that will revive the Vietnamese city’s construction materials market whose annual peak season begins in the first quarter.

HCMC Real Estate Association chairman Le Hoang Chau said it would recover from the first quarter since Vietnam had done an excellent job of containing the pandemic, instilling confidence in businesses.

Rising domestic consumption and the EU-Vietnam Free Trade Agreement (EVFTA) would drive the retail industry, and foreign retailers – especially those from the EU – were expected to enter the country, increasing demand for office space, he said.

Vo Thi Khanh Trang, head of market research at Savills Vietnam, said high-end condos in the city remained in demand despite the pandemic and there were no signs of a fall in prices.

According to Vietnam Real Estate Brokers, some 20 housing projects will be launched in HCMC in the first half of this year in all segments with 30,000 units.

Pham Van Bac, director of the Ministry of Construction’s department of building materials, said the rise and fall of the construction market was closely linked with the property market.

It would also benefit from the public investment projects to be implemented this year, he said.

Repairs to infrastructure damaged by the floods and landslides in the central region would also require large volumes of construction materials, and all these factors would cause the construction materials market to rise sharply this year, he said.

The industry needed to prioritise producing new materials, scale and advanced technologies as well as projects that use waste from other sectors, he said.

VNDirect Securities Company said the building materials industry would benefit greatly from the increasing investment in construction this year, including in major infrastructure projects like the North-South Expressway.

It estimated that the building materials market would be worth 23.7 trillion dong ($1.03 billion) this year.

Vietnam could also benefit from China’s plans to invest in infrastructure this year, which would increase its demand for steel and cement, it said, estimating the trend would continue until mid-year at least.

The steel industry exported nearly $3.65 billion worth of products in the first nine months of last year, a year-on-year increase of 16 per cent.

China was the largest buyer, accounting for 28.5 per cent of the exports, followed by Cambodia and Thailand.

However, imports provided the industry with fierce competition and it also had to deal with trade remedy investigations in export markets, experts said.



  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.