(Construction) - Recently, the Ministry of Construction has issued a series of Circulars guiding the determination and management of construction investment costs (Circular 11/2021/TT-BXD); promulgating construction norms (Circular 12/TT-BXD); guiding the method of determining the economic and technical criteria and measuring the work volume (Circular 13/TT-BXD). The above circulars take effect from October 15, 2021 with many new points being adjusted and supplemented.

Many construction policies take effect from October 15, 2021 (Source: T/L).

Change the percentage of overhead on direct costs

Some new points of Circular 11/2021/TT-BXD guiding the determination and management of construction investment costs are shown in Article 8: on Management and publication of construction prices, including: Publication of construction unit prices construction works; manage and announce construction material prices; manage and announce construction labor unit prices; management announced the price of machine shift and construction equipment…

Accordingly, the unit price of work construction announced by the People's Committee of the province under the provisions of Clause 2, Article 26 of Decree 10/2021/ND-CP is the basis for determining and managing the construction investment costs of the project. province area. Work construction unit prices are determined on the basis of construction norms promulgated by competent authorities and prices of cost elements, including: price of construction materials, unit cost of construction labor, price of machine shift and construction equipment…

The price of construction materials announced by a competent state agency according to the provisions of Clause 3, Article 9 of Circular 11/2021/TT-BXD is the basis for determining the construction price of the work...

In addition, the construction labor unit price announced in the locality must be consistent with the construction labor price on the local labor market, and the characteristics and nature of the construction workers' work; including salary, salary allowance according to the characteristics of construction production and a number of expenses that are the responsibility of the employee to pay according to regulations...

Another new point in Circular 11/2021/TT-BXD is to change the percentage of general costs calculated on direct costs. At the same time, the margin of pre-tax construction costs is added to the total investment of the approved project...

In which, the percentage of the cost of temporary housing camps for living and construction management in Circular 11/2021/TT-BXD has decreased compared to Circular 09/2019/TT-BXD.

For example, the construction works along the line with the construction cost of the total investment of 15 billion VND decreased from 2.3% to 2.2%. The remaining construction works with construction costs in the total investment of 15 billion VND decreased from 1.2% to 1.1%.

Similar to other milestones such as 100, 500, and 1000 billion dong, the norm ratio is reduced.

Circular 11/2021/TT-BXD replaces Circular 09/2019/TT-BXD; Circular 11/2019/TT-BXD; Circular 15/2019/TT-BXD; Circular 16/2019/TT-BXD and Circular 02/2020/TT-BXD of the Ministry of Construction.

Cost norms for construction investment project management increase

A new point in Circular 12/2021/TT-BXD on promulgating construction norms is that the norm of project management costs has increased compared to Circular 16/2019/TT-BXD guiding the determination of management costs. Project management and construction investment consultancy, specifically: Regarding project management costs of civil works ≤ 10 billion VND: Circular 12/2021/TT-BXD increased by 3.446%. Previously, Circular 16/2019/TT-BXD was 3,282%.

Similarly, the remaining works are all increased percentages, including: Industrial works (building materials production, metallurgy and mechanical engineering, mining and mineral processing, petroleum, energy, etc.) chemicals, light industry…); traffic works (roads, railways, bridges, tunnels, inland waterways, maritime, aviation, railway stations...); technical infrastructure works (water supply, drainage, solid waste treatment, stormwater drainage, wastewater, public lighting...); agricultural and rural development projects (irrigation, dikes, etc.)

The norms promulgated together with Circular 12/2021/TT-BXD replace norms issued in Circular 10/2019/TT-BXD promulgating construction norms; Circular 16/2019/TT-BXD guiding the determination and management of project management and construction investment consultancy costs and Appendix II issued together with the Minister's Circular 02/2020/TT-BXD Construct.

Frame of average construction labor cost

According to the guidance in Circular 13/2021/TT-BXD on methods of determining economic and technical criteria and measuring work volume, the frame of average construction labor cost from October 15, 2021 for with a group of construction workers including demolition work, dismantling construction structures, machinery parts, construction equipment, loading and unloading, transporting materials, installing, operating and repairing machines and equipment equipment for construction works, construction technology... with labor unit cost from 213,000 ÷ 336,000 VND/day (region 1); from 195,000 ÷ 312,000 VND/day (region 2); from 180,000 ÷ 295,000 VND/day (region 3) and from 172,000 ÷ 284,000 VND/day (region 4).

As for the other group of workers (ship operators, boat operators, divers, engineers, artisans) the unit cost of labor ranges from 245,000 to 680,000 VND/day (region 1); from 225,000 ÷ 628,000 VND/day (region 2); from 296,000 ÷ 587,000 VND/day (zone 3) and from 198,000 ÷ 562,000 VND/day (zone 4.)

The contents promulgated together with Circular 13/2021/TT-BXD include methods of determining construction investment capital rate, construction price index, new estimate norms, adjustment of estimate norms and review, update the system of norms, unit cost of construction labor, machine shift price and construction equipment and measure the work volume to replace the methods promulgated in Section 1, Appendix 5, Appendix No. 6, Appendix 7 of Circular No. 09/2019/TT-BXD; Circular No. 11/2019/TT-BXD; Circular No. 14/2019/TT-BXD; Circular No. 15/2019/TT-BXD; Circular No. 17/2019/TT-BXD of the Ministry of Construction.

(Construction) – Real estate investment is understood as the activity involved in buying, owning, managing, renting or selling real estate for profit. The following experiences can help you make the right decision when investing in real estate.

Real estate investment needs to be carefully calculated to limit certain risks. Photo: Nguyen Van The

Purpose of investing in real estate

Investing in real estate, you should first define your purpose. For example, investing in real estate to own a property can generate income by renting or reselling it at a higher price; or invest in buying real estate to diversify investment portfolios, reduce risks and have other sources of income.

Should you invest in "surfing" real estate?

Surfing investment is a term used by the business world. Usually, this type of business only has a term of a few months to less than a year with quick profits, even high profits.

However, surfing investment requires investors to be sensitive to all fluctuations of the real estate market, have highly specialized knowledge to choose the right time to drop money.

Invest in real estate with cash flow or capital gains

Capital gains investment is a form of investment based on the difference between the selling price and the original price to create a profit. The type of capital gain investment will bring about a large profit if investors have the ability to make sharp and accurate judgments. However, this form of investment also comes with high risks if business people misjudge.

Cash flow investing is a form of revenue generation that is fixed on a monthly, quarterly or annual basis. This form of investment does not require the investor to have experience and expertise, but can buy land to build a house for rent or rent a house and then lease it back.

Types of real estate investment

Apartment

This is the type of real estate with the most flexible payment method with many attractive home buying policies, creating favorable conditions for buyers to easily own an apartment even if they do not have enough finance.

Land investment

Land investment is becoming more and more popular because of its high returns, although this type of investment carries many risks. Those who have experience in real estate investment in land often choose suburban areas and provinces to invest in this type of investment.

Invest in rental rooms

Investment in apartments and rooms for rent is assessed as having great potential for increasing real estate value and high certainty, not affected by real estate market fluctuations.

(Construction) - Positive signal when the global economy is recovering, growing strongly back. Vietnam’s economy hopes to start early, recovery pace depends on vaccination progress, efficiency measures after intervalation, support and packages.

Export is currently a channel to solve oversupply for the cement market in Vietnam.

A special solution strongly directed by the Government is to remove difficulties and accelerate disbursement of public investment capital. This is considered an important "key" to help the economy recover from the gap. If public investment increases by 1%, GDP will increase by 0.06 percentage points, many industries will benefit.

Receiving a lot of positive information, expecting the recovery of the economy and measures to accelerate the disbursement of public investment capital, industry groups are forecasted to recover soon such as construction, real estate, production of building materials, cement...

Cement is the "bread" of the Construction industry, an important raw material in construction. That means when construction investment increases, public investment increases, cement consumption increases and vice versa.

Reporting to the Government at the regular meeting of the Government in August 2021, the Ministry of Planning and Investment said: The estimated disbursement of public investment by August 31 is 187,285.01 billion VND, reaching 40.6% of the Prime Minister's capital plan delivery, down 5.81% over the same period in 2020 (46.41%). In which, domestic capital reached 44.7% (the same period in 2020 was 50.02%), foreign capital reached 7.94% (the same period in 2020 reached 21.26%).

The results of cement consumption in the first 8 months of 2021 reached 70.77 million tons, up 4% over the same period in 2020. In which, consumption in the domestic market reached 43.54 million tons, down 5% compared to the same period in 2020 the same period; export output was estimated at 27.23 million tons, up 12% over the same period. When public investment in 8 months decreased by 5.81% over the same period, construction investment decreased due to the heavy impact of the pandemic, the only "float" to help the Cement industry maintain its growth momentum was from exports.

In the fourth quarter of 2021 and the following years, the cement industry is expected to continue to grow in both domestic and export markets. Cement stock market has just bounced up quickly when receiving positive information from the market, being hunted by many investors, even cement stocks have increased beyond the actual value of enterprises.

A question arises: If the Government's solutions to overcome difficulties are effectively implemented, the disbursement of public investment capital in 2021 reaches the plan assigned by the Government, and construction investment is accelerated, will it be consumed 105 million tons of cement in the domestic market? The answer is definitely no, because the cement market is oversupplied with over 30 million tons, the total capacity of Vietnam's cement factories is now 105 million tons.

In the following years, public investment and construction investment increased, cement consumption increased, and the cement production line allowed for investment also increased. The lines that have been approved by the Prime Minister to invest by 2030 are 24 lines, with a total capacity of 36.31 million tons. It is expected that by 2030, the country will have 109 cement production lines with a total capacity of 140.35 million tons/year. That means that the cement market always has a very large supply, there is no "fever" of lack of cement. Is there an uneven distribution between regions because many cement factories are concentrated in the North and Central, and few in the South. Expectations of sudden growth from the Cement industry are very low.

In the case that public investment is disbursed strongly, in the period of 2022 and 2023, only cement companies will really benefit from infrastructure investment projects, after the works using public capital complete land clearance equal.

Thus, actively promoting consumption, brand development as well as seeking to expand the market is the solution cement enterprises actively implement. Can't just wait for the disbursement of public investment capital!

Cement enterprises are actively applying the achievements of the 4th scientific and technological revolution in production and business, digitizing the consumption chain and logistics; digitizing electronic document management; digitizing management manage all production activities of enterprises... Although public investment has increased, construction investment has increased, the Cement industry is still oversupplied and competitive under pressure. In order to survive and develop, businesses must continue to innovate technology, promote creativity, improve productivity, and at the same time protect the environment, towards green and sustainable development...

(Construction) – Dong Nai Provincial People's Committee proposed the Government to support 4,130 billion VND to build two roads connecting to Long Thanh airport.

Dong Nai Provincial People's Committee proposed the Deputy Prime Minister to consider and approve the policy of adjusting and supplementing the feasibility study report approved in Decision 1487/2018 of the Prime Minister. Specifically, the adjustment will not continue to implement two component projects, including: Component project of technical infrastructure system of subdivision III residential area, resettlement of Binh Son commune (component project 3) and component project of communal works Association of residential and resettlement areas in Binh Son commune (component project 4). At the same time, it is proposed to adjust the completion time of resettlement to 2022 instead of 2021 as planned.

According to the plan, the province will invest two routes connecting to Long Thanh airport with a total cost of VND 18,000 billion. It is the project of upgrading and expanding DT.773 route (from Ho Chi Minh City Long Thanh Dau Giay highway to the airport), the investment cost is about 5,516 billion VND, of which the compensation cost is about 2,290 billion VND; DT road project .770B (from National Highway 51 to the airport), the investment cost is 12,494 billion VND, of which the compensation cost is 7,595 billion VND. The People's Committee of Dong Nai province proposed the Government to consider and approve the support amount of more than 4,130 billion VND to invest. invest in the two connecting routes above, the remaining capital will be balanced from the provincial budget.