Over the past few days, the price of cement in the domestic market has seen a dramatic price spike defying the Government’s measures to curb price rises. Despite fluctuations in the soaring prices of building material such as steel, cement and bricks in the wake of New Year, Ho Chi Minh City continues to face scarcities and price hikes for building material in May. On May 8-9, the cement price on the retail market skyrocketed to VND85,000/ bag and in some cases to VND100,000/bag. Even those with money have apparently found it difficult to buy cement.
Although cement producers such as Ha Tien 1 and Holcim still ensure cement supply at VND53,000/ 50kg bag since early February, a cement price fever has hit the retail market while 80 per cent of building material shops in Ho Chi Minh City said that cement has been sold out.
A number of shops which still store cement, offered prices ranging from VND85,000-VND100,000/ bag, up VND30,000-45,000/bag or 70 percent more than the prices at plants. Customers, investors and contractors have to incur the disparity in prices while profits fall into the hands of distributors. Worthy of note is that even though a bag of cement is priced at VND90-100,000 in the face of insufficient supplies, sellers pay no attention to buyers.