Vietnamese construction firms face bankruptcy amid higher steel prices

Monday, 03 May 2021 16:12:32 (GMT+3)   |   Istanbul

Vietnamese construction companies are facing the risk of bankruptcy with construction steel prices reaching VND 19,000 ($0.82) per kg recently, increasing by 40 percent, according to local media reports. Higher material prices will increase house prices in the near future as construction costs have also increased, as SteelOrbis understands.

The Vietnam Association of Construction Contractors recently called on the government to find solutions to tackle the increase in construction steel prices, and asked for an examination of the reasons for the price increases and for the updating of market prices. The association stated that the situation may cause local contractors to face bankruptcy as they cannot raise house prices due to fixed-price contracts.

Meanwhile, in Vietnam, many steel producers’ financial performances improved due to higher steel prices in the first quarter this year.

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