110826_-_vietnam_construction_cost_review_-_q2-2011.pdf

7/29/2019 110826_-_Vietnam_Construction_Cost_Review_-_Q2-2011.pdf

1/11

DAVIS LANGDON & SEAH VIETNAM

Q2 2011

QUARTERLY

CONSTRUCTION COST REVIEW

IN VIETNAM


2/11

Q2 2011

OVERVIEW

APPROXIMATE BUILDING COST IN VIETNAM

AVERAGE DAILY LABOUR COST

MATERIAL COST TREND IN VIETNAM

STATUS OF VIETNAM PRICE MOVEMENTS

GOVERNMENTS SUBSIDIZED MATERIALS

TABLE OF CONTENTS


3/11

Whilst sovereign debt seems to be the primary issue concerning world economics at present, it would

seem from an international perspective that this scenario has already played out in Vietnam and as a

function of reduced Foreign Direct Investment (FDI).

As this paper has frequently stated, FDI commitments had reduced markedly since the end of 2008

however FDI disbursement as a function of the reduced FDI commitments have been notably

depreciating over the past 12 months.

Reduced FDI is a key reason why construction grown in 2011 will most likely be less than in 2010 but

it is certainly not the only contributing factor.

Fiscal measure currently being adopted by the Government and in an effort to curtail the growing

trade deficit are having a significant effect on; infrastructure, property and ultimately construction. High

Central Bank and Commercial Rates are affecting both demand and supply for property in terms of

buyers and in terms of project start ups. Not only do the high interest rates increase the cost of

borrowing to house owners and businesses but they also have detrimental impacts upon project

feasibilities and hence reduce new developments

OVERVIEW


4/11

US$ PSM, CONSTRUCTION FLOOR AREA

RESIDENTIAL Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Detached Houses and Bungalows 485 490 497 507 520 520-620

Average Standard Apartment, High rise 615 620 629 642 655 662-782

Luxury Apartments, High rise 780 788 808 815 835 850-980

Terraced Houses 400 403 408 417 425 439-496

Specification1. Average Standard Apartments to be 30-50 storey 60-90 m2 per flat.2. Average Luxury Apartment to be 30-50 storey 100-150 m2 per flat.3. Apartments and Houses include air conditioning, kitchen cabinets, kitchen cooktop, exhausted hood but exclude loose furniture and home

appliances.

OFFICE /COMMERCIAL Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Prestige Offices, High Rise 885 900 913 930 950 926-1,156

Average Standard Office, High Rise 720 730 740 757 770 787-907

Shopping Centers 665 675 684 697 715 720-835

Specification1. Offices based on buildings 20-30 storeys high with floor plans minimum 1,000m2 per level.2. Shopping centres and average standard offices exclude finishes, A/C ducting and light fittings to tenant areas, standard faade.3. Prestige offices are fitted with raised floor, suspended ceiling, A/C ducting and light fittings to tenant areas, standard faade.

INDUSTRIAL Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

APPROXIMATE BUILDING COSTIN VIETNAM Q2/2011


5/11

Description Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11

General Worker10.32 10.55 10.77 11.17 11.42 11.54

Concretor11.65 11.90 12.15 12.60 12.88 13.01

Bar Bender and Fixer12.49 12.76 13.03 13.51 13.81 13.95

Carpenter (formwork)11.65 11.90 12.15 12.60 12.88 13.01

Plumber16.64 17.00 17.36 17.99 18.39 18.59

Electrical Fitter16.64 17.00 17.36 17.99 18.39 18.59

Brick layer13.31 13.60 13.89 14.39 14.71 14.87

Metal Worker13.31 13.60 13.89 14.39 14.71 14.87

Construction Plant Mechanic24.12 24.64 25.16 26.08 26.66 26.94

AVERAGE DAILY LABOUR COST IN

PRIVATE SECTOR CONSTRUCTIONPROJECT IN VIETNAM Q2/2011


6/11

AVERAGE PRICE (USD)

Excluded:

1. Labour, plant, transport, wastage and other incidentals (and is ex-works price).2. Tax (VAT, Import tax).

NO Description Unit2011

Jan Feb Mar Apr May Jun

ex-rate 19,500 20,395 20,874 20,868 20,700 20,645

1 Portland Cement (PCB40) Bags 3.25 3.30 3.25 3.64 3.65 3.66

2 Mild steel round bars Kg 0.78 0.79 0.79 0.80 0.80 0.81

3 High tensile steel bars Kg 0.77 0.75 0.77 0.78 0.78 0.79

4 40mm aggregate Cum 6.44 6.15 6.01 6.61 7.32 7.34

5 20mm aggregate Cum 8.63 8.25 8.06 8.48 9.46 9.48

6 Yellow sand Cum 9.74 9.32 9.34 9.58 9.66 9.69

7 Clay brick units Pcs 0.23 0.22 0.21 0.21 0.21 0.21

8 Concrete blocks Pcs 0.53 0.51 0.49 0.54 0.54 0.55

9 Structural Steel MT 885.79 936.06 914.58 958.41 966.18 968.76

AVERAGE MATERIAL COST TRENDIN VIETNAM Q2/2011


7/11

Davis Langdon & Seah Vietnam Copyright Page | 7 of 11

2.00

3.00

4.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2010 2011

USD/BAG

Portland Cement (PCB40)

Portland Cement (PCB40)

-

0.50

1.00


2010 2011

USD/

KG

Steel Bars

Mild steel round bars (6-20mm)

High tensile steel bars (10-40mm)

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00


2010 2011

USD/CUM

Ready Mixed Concrete

RMC M20 Grade RMC M35 Grade RMC M40 Grade

-

0.20

0.40

0.60


2010 2011

USD/pcs

Clay Brick + Concrete

Clay brick units Concrete blocks


8/11


2005 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11

HN 100.00 146.96 149.72 147.90 148.71 149.53 151.35 152.56 151.84 152.86 153.03 154.65 158.24 159.15 164.37 166.84 166.74 167.88 168.61 169.13 169.78 173.65 177.61 184.41 191.50 198.11 206.26 215.80 230.27 239.50 245.04

HCMC 100.00 146.60 150.18 148.04 149.25 150.11 150.89 153.06 151.46 152.91 152.86 155.91 159.34 159.11 162.88 165.38 166.00 167.25 168.20 168.16 168.12 171.97 174.55 180.87 187.41 192.59 199.78 208.59 222.33 232.67 236.84

VN 100.00 146.54 148.25 148.00 148.52 149.17 149.99 150.77 151.13 152.07 152.63 153.47 155.00 157.11 160.19 161.39 161.62 162.06 162.42 162.52 162.89 165.02 166.75 169.85 173.21 176.22 179.90 183.80 189.90 194.10 196.22

100%

120%

140%

160%

180%

200%

220%

240%

260%CONSUMER PRICE INDEX

CONSUMER PRICE INDEX

for whole country and major cities of Hanoi and Ho Chi Minh

(Source: GSO of Vietnam)



9/11


PRICE INDEX: HOUSING AND CONSTRUCTION MATERIALSfor whole country and major cities of Hanoi and Ho Chi Minh

(Source: GSO of Vietnam)

2005 Jan-09 Feb-09Mar-09Apr-09May-09 Jun-09 Jul-09 Aug-09Sep-09 Oct-09Nov-09Dec-09 Jan-10 Feb-10Mar-10Apr-10May-10 Jun-10 Jul-10 Aug-10Sep-10 Oct-10Nov-10Dec-10 Jan-11 Feb-11Mar-11Apr-11May-11 Jun-11

HN 1 00 . 1 46 . 1 51 . 1 47 . 1 47 . 1 49 . 1 53 . 1 54 . 1 53 . 1 53 . 1 53 . 1 54 . 1 58 . 1 59 . 1 63 . 1 67 . 1 70 . 1 74 . 1 74 . 1 74 . 1 73 . 1 77 . 1 82 . 1 89 . 1 99 . 2 05 . 2 10 . 2 21 . 2 38 . 2 51 . 2 55 .

HCMC 1 00 . 1 47 . 1 50 . 1 49 . 1 49 . 1 51 . 1 52 . 1 53 . 1 52 . 1 53 . 1 53 . 1 54 . 1 58 . 1 60 . 1 63 . 1 66 . 1 70 . 1 73 . 1 75 . 1 74 . 1 76 . 1 79 . 1 83 . 1 89 . 1 98 . 2 06 . 2 11 . 2 21 . 2 38 . 2 50 . 2 53 .

VN 1 00 . 1 38 . 1 41 . 1 41 . 1 42 . 1 43 . 1 45 . 1 48 . 1 49 . 1 49 . 1 49 . 1 49 . 1 51 . 1 53 . 1 56 . 1 58 . 1 62 . 1 64 . 1 65 . 1 64 . 1 64 . 1 66 . 1 67 . 1 70 . 1 75 . 1 77 . 1 78 . 1 85 . 1 93 . 1 99 . 2 01 .

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

HOUSING & CONSTRUCTION MATERIALS



10/11


0.40

0.45

0.50

0.55

0.60

0.65

0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

USD/Liter

Month

DIESEL PRICE 2007 - 2011

World market VN market

DIESEL PRICE in Vietnam market against the world price market



11/11


0.40

0.45

0.50

0.55

0.60

0.65

0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

USD/Liter

Month

GASOLINE PRICE 2007 - 2011

World market VN market

GASOLINE PRICE in Vietnam market against the world price market


110826_-_vietnam_construction_cost_review_-_q2-2011.pdf

Documents