VIETNAM

QUARTERLY CONSTRUCTION COST

REVIEW
Q2/2013| Aug 2013

……………………………………………………………………………………………………..
Global Construction Consultants

Langdon & Seah Vietnam Copyright Page | 1

OVERVIEW
Q2/2013
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Vietnam is currently negotiating its membership of the Trans Pacific Partnership (TPP) a trading zone of seemingly
eclectic countries comprising: Brunei, Chile, Singapore, New Zealand and to be closely followed by the USA among
others. Although not expressly identified as an APAC initiative it is likely to serve as a key pathfinder to the objectives
of an APAC free trade area.

Not only is the TPP of significance as a trading block it also helps to alleviate this writers concerns regarding the risk
of import substitution and trade protectionism. At the time of the global debt crisis in 2008 we wrote of such concerns
and with reference to the Smoot Hawley Tariff and Trade laws developed by the USA in response to the global
meltdown of the 1930's.

Although the WTO in many ways has stalled there are a number of smaller trading blocks emerging. Interesting and
untypical of economic history such blocks are less in line with any cultural, economic and political ideology but more
along the lines of convenient real politics the shifting of global plates will less likely follow Huntingdon's model of "A
Clash of Civilizations" but more a scrabble for global brands and dealerships.

Vietnam's current export services are suggesting the economy is starting to demonstrate robustness and it is hoped
it's current export led position will go someway to resolving the bank debt issue.

The construction market will remain in the doldrums and costs and prices may only rise in response to global
commodity prices which remain driven by the China market. At the time of writing this China Market Data seems to be
taking an upside so watch this space.

Langdon & Seah Vietnam Copyright Page | 2

APPROXIMATE BUILDING COST IN VIETNAM
Q2/2013
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US$ PSM, CONSTRUCTION FLOOR AREA
RESIDENTIAL Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
Detached Houses and Bungalows 540 525 520 520 520 468 - 568
Average Standard Apartment, High rise 684 665 660 660 660 598 - 718
Luxury Apartments, High rise 862 835 835 835 835 770 - 900
Terraced Houses 446 435 430 430 430 398 - 458

Specification
1. 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 & Houses include air conditioning, kitchen cabinets, kitchen cook top, exhausted hood but exclude loose furniture & home appliances.
OFFICE /COMMERCIAL Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
Prestige Offices, High Rise 990 950 950 950 950 834 – 1,068
Average Standard Office, High Rise 804 780 775 775 775 714 - 834
Shopping Centers 740 720 710 710 710 654 - 768

Specification
1. 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 façade.
3. Prestige offices are fitted with raised floor, suspended ceiling, A/C ducting and light fittings to tenant areas, standard façade.
INDUSTRIAL Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
Light Duty Flatted Factories 307 300 300 300 300 225 – 370
Heavy Duty Flatted Factories & Warehouses 444 430 430 430 430 375 – 480
Single Storey Conventional Factories 438 425 425 425 425 370 - 480
Owner Operated Factories, Low Rise 436 425 425 425 425 370 - 475

Specification
1. Flatted factories and industrial –office buildings exclude manufacturing equipment, special services provisions, air-conditioning and electrical
distribution system to tenant areas.
HOTEL Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
Resort Hotel 1,320 1280 1,275 1,275 1,275 1,128 – 1,418
03 Star Budget Hotel inclusive of F.F.&E 1,530 1485 1,480 1,480 1,480 1,348 - 1,600
05 Star Budget Hotel inclusive of F.F.&E 1,904 1845 1,845 1,845 1,845 1,728 – 1,958

Specification
1. F. F & E includes interior decoration and loose furniture etc. but excludes hotel operated equipment costs (e.g. cutlery, crockery, linen, uniform, etc.)
OTHER Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13
Basement Car Parks (< 3 levels) 671 650 650 650 650 605 – 695
Elevated Car Parks (< 4 levels) 390 390 375 375 375 345 – 405
Primary and Secondary schools 478 465 460 460 460 450 – 475
Student Hostels 554 540 535 535 535 475 – 600
Sport Club inclusive of F.F.&E 782 760 755 755 755 715 - 795

Specification
1. Underground car park cost including temporary steel works and bottom-up

Note
1. The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual
cost of a building will depend upon the design and many other factors and may vary from the figure shown.
2. The costs per square metre are based on Constructions Floor Areas measured to the outside face of the external walls/external perimeter including
lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
3. All buildings are assumed to be built on flat ground, with normal soil and site condition. The cost excludes site formation works, external works, land
cost, professional fees, finance and legal expenses.
4. The standard for each category of building vary from country to country and do not necessarily follow those of Vietnam.

Langdon & Seah Vietnam Copyright Page | 3

AVERAGE DAILY LABOUR COST
IN PRIVATE SECTOR CONSTRUCTION PROJECT IN VIETNAM
Q2/2013
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AVERAGE PRICE (USD)
(Source: LSVN Database)

Description Jan 13 Feb 13 Mar 13 Apr 13 May 13 June 13

General Worker
12.97 13.14 13.11 13.11 13.11 13.11
Concreter
14.63 14.83 14.80 14.80 14.79 14.80
Bar Bender and Fixer
15.70 15.90 15.87 15.87 15.86 15.87
Carpenter (formwork)
14.63 14.83 14.80 14.80 14.79 14.80
Plumber
20.91 21.18 21.14 21.14 21.13 21.14
Electrical Fitter
20.91 21.18 21.14 21.14 21.13 21.14
Brick layer
16.73 16.95 16.91 16.91 16.90 16.91
Metal Worker
16.73 16.95 16.91 16.91 16.90 16.91
Construction Plant Mechanic
30.30 30.70 30.64 30.64 30.62 30.64

LABOUR COST

16.73 16.95 16.91 16.91 16.90 16.91

USD/MANDAY

15.70 15.90 15.87 15.87 15.86 15.87

14.63 14.83 14.80 14.80 14.79 14.80

12.97 13.14 13.11 13.11 13.11 13.11

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

General Worker Concretor Bar Bender and Fixer Brick Layer

Langdon & Seah Vietnam Copyright Page | 4

AVERAGE MATERIAL COST TREND IN VIETNAM
Q2/2013
_________________________________________________________
Average Price (USD)
Excluded: 1. Labor, plant, transport, wastage and other incidentals (and is ex-works price).
2. Tax (VAT, Import tax).

(Source: LSVN Database)

No Description Unit 2013

Jan 13 Feb 13 Mar 13 April 13 May 13 Jun 13

Ex-rate 20,862 20,896 20,960 20,937 20,996 21,052

1 Portland cement (PCB40) Bags 3.74 3.73 3.72 3.73 3.71 3.71

2 Mild steel round bars Kg 0.74 0.74 0.74 0.75 0.75 0.71

3 High tensile steel bars Kg 0.72 0.72 0.72 0.72 0.72 0.68

4 40mm aggregate Cum 7.57 7.56 7.54 7.55 7.53 7.51

5 20mm aggregate Cum 8.63 8.61 8.59 8.60 8.57 8.55

6 Yellow sand Cum 10.55 10.53 10.50 10.03 10.00 9.98

7 Clay brick units Pcs 0.05 0.05 0.05 0.05 0.05 0.05

8 Concrete blocks Pcs 0.65 0.65 0.64 0.64 0.64 0.64

9 Structural steel MT 784.39 783.12 780.73 781.58 779.39 777.31

10 Clear float glass 5mm M2 9.59 8.85 8.83 8.84 8.81 8.79

11 Laminated glass 10mm M2 20.13 20.10 20.04 20.06 20.00 19.95

12 Tempered glass 10mm M2 23.97 19.14 19.08 23.88 23.81 23.75

13 RMC M20 Grade Cum 51.00 50.92 50.76 51.68 51.53 51.40

14 RMC M35 Grade Cum 59.25 59.15 58.97 59.94 59.77 59.61

15 RMC M40 Grade Cum 62.31 62.21 62.02 62.95 62.77 62.61

16 Diesel 0.05S Lit 1.03 1.03 1.03 1.02 1.01 1.02

17 Petrol (Mogas 92) Lit 1.11 1.11 1.10 1.13 1.11 1.13

18 Hardwood M3 575.21 574.27 572.52 573.15 571.54 570.02

19 Plywood M2 12.18 12.16 12.12 12.99 12.95 12.92

20 Local homogeneous floor tile M2 7.19 7.18 7.16 7.16 7.14 7.13

21 Emulsion paint Lit 7.00 6.99 6.97 6.97 8.24 8.22

Langdon & Seah Vietnam Copyright Page | 5

 Portland Cement (PCB40)
4.0 3.88
3.9
3.8 3.71
USD/BAG

3.7
3.6
3.5
3.4
3.3

Mixed Ready Concrete

62.61
65
59.25
60
USD/M3

55 59.61
56.21
50
51.03 51.4
45
40

RMC M20 Grade RMC M30 Grade RMC M45 Grade

Steel Bars
0.79
0.8
0.71
0.8
USD/KG

0.77
0.7
0.7 0.68
0.6

Mild steel round bars (6-20mm) High tensile steel bars (10-40mm)

Clay Brick + Concrete Block

0.8 0.64
0.7 0.54
0.6
USD/PCS

0.5
0.4
0.3 0.21
0.2 0.05
0.1
0

Clay brick units (210x100x60) Concrete blocks (190x190x390)

Langdon & Seah Vietnam Copyright Page | 6

PRICE INDEX – VIETNAM/HANOI/HCMC
Q2/2013
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CONSUMER PRICE INDEX

350%

313.29%

300%

294.25%

250%

200% 223.78%

150%

100% 05 Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun-
09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12 12 12 13 13 13

HN HCMC VN

HOUSING & CONSTRUCTION MATERIALS

350%
331.87%

300%
306.82%

250%

224.41%
200%

150%

100%
05 Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun- Aug- Oct- Dec- Feb- Apr- Jun-
09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12 12 12 13 13 13

HN HCMC VN

Langdon & Seah Vietnam Copyright Page | 7

 0.40
0.60
0.80
1.00
1.20
1.40

0.40
0.60
0.80
1.00
1.20
1.40
Jan-07
Jan-07
Mar-07

USD/Liter
Mar-07
May-07
Q2/2013
May-07
Jul-07
Jul-07
Sep-07
Sep-07
Nov-07
Nov-07
Jan-08
Jan-08
Mar-08
Mar-08
May-08
May-08
Jul-08 Jul-08

Langdon & Seah Vietnam Copyright

Sep-08 Sep-08

Nov-08 Nov-08

Jan-09 Jan-09

Mar-09 Mar-09
M-09 M-09
J-09 J-09
Sep-09 Sep-09
Nov-09 Nov-09
Jan-10
Jan-10
Mar-10
Mar-10
May-10
FUEL PRICES – VIETNAM & GLOBAL

May-10
Jul-10
Jul-10
Sep-10
Sep-10
Nov-10
Nov-10
Jan-11
Jan-11
DIESEL PRICE 2007 - 2013

Mar-11
Mar-11
May-11
May-11

GASOLINE PRICE 2007 - 2013

Jul-11
Sep-11 Jul-11

Nov-11 Sep-11

Jan-12 Nov-11

Mar-12 Jan-12

May-12 Mar-12
World market

Jul-12 May-12
Sep-12 Jul-12

World market
Nov-12 Sep-12
Jan-13 Nov-12
Mar-13
Jan-13

1.2992
May-13

1.1231
Mar-13
VN market
1.0138

May-13
1.3558

Page | 8
VN market
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Tianjin, Bangkok,

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OUR SERVICES

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Due Diligence | Loan Monitoring | Sustainable Construction | Insurance Valuations & Loss Adjustments | Legal Support Services |
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CONTACT US

Ho Chi Minh Head Office: Hanoi Branch Office:

th
Unit E, 9 Floor, VTV Building, 8 Nguyen Hue Blrd, 4th Floor, Thanh Dong Building, 132-138 Kim Ma,
District 1, Ho Chi Minh City, Vietnam Ba Dinh District, Hanoi, Vietnam
Tel: +84.8.38238297 – Fax: +84.8.38238197 Tel: +84.4.39427525 – Fax: +84.4.39427526
Email: mark.olive@vn.langdonseah.com Email: mark.olive@vn.langdonseah.com
tri.truong@vn.langdonseah.com
Web: www.langdonseah.com

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