Construction demand declines
There are many construction teams in Nghe An . Each team has a contractor, specializing in civil housing projects, creating jobs for many local workers, meeting the construction needs of local people. However, when the construction market stagnates, the jobs of construction workers are also affected.
It is easy to see that since the beginning of the year, there have not been many housing construction projects for people in rural areas. Mr. Nguyen Tho Dien, a construction contractor in Tay Ho hamlet, Nam Thanh commune (Yen Thanh) said that in previous years, his team of workers never ran out of projects, and there were even times when they took on 3 projects at once, and the workers could not finish all the work. In 2023, people rarely built houses, and many times there were no projects, and dozens of construction workers were out of work.
“Currently, the construction workers have jobs, but because the construction is a level 4 house, only 50% of the workers can be assigned. Overall, this year, construction workers have low incomes,” Mr. Dien shared.
Housing construction projects have decreased, so the accompanying construction materials such as paint, bricks, sanitary equipment, etc. are also selling very slowly. Ms. Phuong, the owner of a paint and brick dealer in Tan Ky town (Tan Ky district), said that this year, fewer new houses are being built than in previous years, so paint sales have also slowed down. "When civil construction projects decrease, there are times when market staff have no income, so this year's revenue will probably decrease a lot compared to last year," Ms. Phuong said.
Construction materials are sluggish.
At brick factories in Tan Ky, Yen Thanh, Thanh Chuong, etc., there are a lot of brick products in stock. Some brick factories have temporarily stopped operating for many months now because there is no more space to store the products.
Mr. Nguyen Van Tam - Director of Tan Ky Tunnel Brick and Tile Factory said that the unit currently has millions of bricks in stock, while daily consumption is very low. The factory has been operating since 2014, but the market has never been as gloomy as this year. Due to the high capacity of the factory (40 million bricks/year), while consumption is slow, the unit has temporarily stopped producing construction bricks since September, instead focusing on producing high-tech tiles.
The brick and tile factory of Hoang Nguyen – Tan Ky Brick and Tile Company in Nghia Dung commune is in a similar situation. The factory representative said that due to unsold products, the factory has been temporarily closed for many months, causing hundreds of workers to be unemployed.
Similarly, construction sand and gravel are also consumed very slowly at sand and gravel mines in Do Luong, Thanh Chuong, Tan Ky districts...
A representative of Truong An Company Limited in Do Luong District said that the unit operates in sand mining on Lam River, but since the beginning of 2023, not only has the consumption of construction sand and gravel slowed down, but the selling price has also decreased significantly, from 82,000 VND/m3 to 67,000 VND/m3; meanwhile, the amount of sand and gravel consumed has also decreased significantly. At the end of 2022, 700 - 1,000 m3 were sold each day, but by 2023, the amount of sand sold daily has gradually decreased, as currently only 200 m3/day is sold. In addition, the unit's ready-mixed concrete business has also decreased significantly.
Cement and construction steel products are also being consumed very slowly. According to Mr. Phan Ba Hai - Director of Hai Yen Transport and Trading Company Limited in Yen Thanh district, in the first 10 months of this year, prices have been continuously decreasing, with a large amount of steel in stock.
“Compared to the first 10 months of 2022, the amount of cement and construction steel this year is only 35% - 40%. The reason is the frozen real estate market, the impact of the economic recession... Normally, from the 10th lunar month, people build a lot of houses, but we don't know what will happen this year,” said Mr. Phan Ba Hai.
When the demand for residential construction decreases, it is natural that the consumption of construction materials will slow down. Not only that, many workers in the construction and transportation industries will also be affected. If this situation continues, the construction materials business will continue to face difficulties./.
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