Opportunity for recovery and breakthrough for the construction industry

Abundant supply, stable prices

A survey by reporters of Kinh te & Do thi Newspaper on some streets specializing in trading construction materials such as Cau Dien, Pham Van Dong, Kim Nguu... shows that although it is just the beginning of the construction season, business owners, agents, and stores expect demand to increase slightly compared to last year.

Currently, the supply in the market is still quite abundant, prices are stable. Mr. Dang Thanh Tuan - owner of Tung Dang construction equipment warehouse (Cau Dien street, Bac Tu Liem district) said that the market is "warming up" as recently people are looking to build houses on the ground.

"The trend of shifting to new housing construction is increasing compared to last year. As for apartments, I think in the coming time, people will build more, especially when legal issues are resolved" - Mr. Dang Thanh Tuan shared.

Consumers look at construction materials on Cat Linh Street. Photo: Hai Linh

To keep up with the market, Mr. Dang Thanh Tuan’s facility currently sells all kinds of materials, from tiles, sanitary equipment, to kitchen equipment… Consumer trends are leaning towards higher-end, safer equipment. Consumers are now concerned about the origin, provenance and quality of products.

For large enterprises, to attract and stimulate demand during the peak construction season, a series of promotional programs are launched. For example, one-piece toilets of Inax, Viglacera or Toto brands have an average price ranging from 2.6 to 6.1 million VND depending on the product line. Two-piece toilets are cheaper, install faster and cost less, ranging from 1.4 to 2.8 million VND, depending on the product line and brand.

Talking to reporters, Mr. Hieu - owner of Hieu Thu Construction Materials Store (Ho Tung Mau Street, Bac Tu Liem District) shared that from 2024 until now, the demand and price of construction materials have not had any breakthroughs. For this item to be vibrant, it must fall at the end of the year.

"With iron and steel, whether business is favorable or not depends on whether the construction market increases or there are more projects, but at this time it is just moderate" - Mr. Hieu said.

Currently, the price of some steel products ranges from 13,330 - 13,690 VND/kg, such as Hoa Phat steel with CB240 coil steel at 13,480 VND/kg; D10 CB300 ribbed steel at 13,580 VND/kg. At other enterprises, the price of CB240 steel fluctuates around 13,360 - 13,800 VND/kg, while D10 CB300 steel is around 13,560 - 13,850 VND/kg.

Expectations improved

After a period of stagnation, the real estate market has shown clear signs of recovery with the number of commercial housing projects under construction in the fourth quarter of 2024 increasing by 9.7% over the same period last year; at the same time, the number of newly licensed projects in 2024 increased by 36% over the previous year. Together with the stable price of construction materials, these are positive signals for the construction industry.

According to VIS Ratings' 2025 credit outlook report, the construction industry has recorded a significant improvement in financial results in 2024. Construction companies under its monitoring scope achieved a total revenue growth of 15% and profit after tax of 44% compared to the same period last year. This recovery is mainly due to revenue growth and profit margin from construction activities, especially in the industrial and infrastructure construction segments.

This recovery was mainly due to revenue growth and profit margin growth from construction activities, especially in the industrial and infrastructure construction segments. In addition, reduced interest expenses and contributions from other business activities also played an important role in boosting business results.

VIS Ratings' expert team believes that 2024 will mark a significant recovery for the Construction industry in terms of revenue, profit and debt repayment capacity. Growth drivers in the industrial and infrastructure construction segments will continue to be well maintained in 2025, along with an increase in civil real estate construction after project development activities expanded since the second half of 2024. Therefore, the financial results of construction companies will continue to improve in 2025.

Director of Hanoi BQT Construction Investment Joint Stock Company Nguyen Van Hach acknowledged that in order for the private construction sector to develop, it is necessary to combine the State's support policies with monetary, credit and capital supply solutions along with improving quality. The efforts of enterprises will determine the sustainable development of the market in the future.

 

FPT Securities Company assessed that the source of work for infrastructure construction enterprises in 2025 will remain positive thanks to the continued implementation of contracts signed from the 2022-2023 period and the commencement of new bid packages in 2025, in the context of the public investment capital plan in 2025 increasing by 18% compared to the previous year, reaching VND 790,000 billion.

Source: https://kinhtedothi.vn/co-hoi-phuc-hoi-but-pha-cho-nganh-xay-dung.html