The high price of bricks and their scarcity are due to many reasons such as increased production costs, increased electricity prices, reduced supply, increased construction demand and objective factors such as unfavorable weather. However, the most important thing to consider is the impact of this price increase on the province's economy , labor market and urban development policy.
According to a survey at local construction material dealers, the price of burnt bricks has increased by 20-30% in the past 6 months. Previously, a burnt brick cost between 1,000-1,200 VND, but now the price has increased to 1,500-1,800 VND depending on the type.
The high cost of raw materials such as clay and coal, along with other operating costs, has pushed up product prices. In addition, many brick factories are also having difficulty maintaining operations due to the impact of environmental control policies and rising energy prices.
The high price of burnt bricks and their scarcity not only affect investors but also force many construction projects to adjust their construction progress or seek alternative solutions. Many contractors have had to recalculate costs, cut down the scale or delay projects to minimize the financial impact.
Construction material distribution businesses are also facing difficulties due to unstable import prices, putting pressure on the entire supply chain. This situation also has a negative impact on the real estate market when construction costs increase, causing housing prices to increase, reducing people's access to housing and possibly leading to a market slowdown.
According to the leader of Phu Thanh TSC Construction and Trading Company Limited, Khai Quang Ward (Vinh Yen), due to the high price of burnt bricks, the company is facing many challenges in maintaining the progress of construction projects. The sharp increase in construction material costs has forced the company to adjust its budget, find reasonable sources of supply and renegotiate contracts with partners. If this situation continues, the company may have to cut staff or reduce the scale of operations to ensure business continuity.
In addition, the increase in brick prices has led to an increase in the cost of building infrastructure, housing and public works, affecting many related industries. If this situation persists, it could contribute to inflation, negatively impact people's purchasing power and slow down the overall growth rate of the economy. When the price of construction materials increases, many businesses and individuals will delay their construction plans, disrupting the cash flow in the economy.
Not only stopping at the economy, the high price of fired bricks also affects the labor market. When projects are delayed or extended, thousands of workers in the construction industry, from engineers to construction workers and material transporters, may face temporary unemployment. This will affect their income and life, and put pressure on social security policies.
If this situation persists, many workers may have to switch to other occupations, causing an imbalance in the local labor market. In addition, the increase in construction material prices also causes traffic infrastructure projects and new urban areas to stagnate or have to adjust their scale, directly affecting the overall development goals of the province and reducing the ability to attract investment.
According to Mr. Tran Duc Manh, Director of Hoa Sen Group Joint Stock Company, Vinh Phuc branch (Vinh Yen), the high price of input materials has made it difficult for businesses to maintain reasonable selling prices. He shared: “We have to keep the selling price the same to retain customers, but this means that profits have decreased significantly. In the past 3 months, the revenue of the branch stores in Vinh Phuc has only reached about 13 - 15 billion VND/month, down about 20% compared to before.
Faced with this situation, the Provincial People's Committee has directed relevant agencies to implement a number of solutions to control construction material prices and support businesses. In particular, proactively determine and publicize construction material prices, helping businesses and investors have accurate information to make financial plans. Strengthen market inspection to avoid speculation and unreasonable price increases.
In addition, the province also encourages businesses to apply modern technology to reduce production costs and improve product quality. In addition, the use of unburnt bricks is being promoted as an alternative solution to reduce dependence on traditional materials, while contributing to environmental protection.
In general, the high price of fired bricks is posing difficulties for the construction industry as well as the macro economy. Finding suitable solutions, from improving production technology to using alternative materials, is necessary to help stabilize the construction materials market. If there is close coordination between businesses, the government and the people, this situation can be controlled, ensuring the progress of construction projects and promoting sustainable economic development.
Thanh An
Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/129192/Gach-nung-gia-cao-nhieu-cong-trinh-chat-vat-thi-cong
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