FDI enterprises spend thousands of billion to build factories

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Giang Dien Industrial Park has many FDI enterprises investing in building manufacturing factories

In the first nine months of 2022, foreign direct investment (FDI) enterprises have invested in the construction industry in the province more than VND 3.3 trillion, up nearly 27% over the same period last year. . Particularly in the third quarter of 2022, FDI enterprises have built constructions and projects with a total capital of nearly VND 1,1250 billion, an increase of nearly 11% compared to the previous quarter and an increase of more than 68% compared to the same period last year.

The reason why FDI enterprises' investment in construction has increased since the beginning of the year is because in 2021, most of the projects will have to stop construction, due to disruption in the supply of materials and human resources. Due to the Covid-19 epidemic, the third quarter of 2021 must conduct social distancing. On the other hand, due to the high cost of raw materials, especially steel and cement, which are the main raw materials in construction, prices fluctuate greatly. With the construction material industry accounting for 75% of the total cost, in which steel is the raw material that accounts for the largest proportion with about 40-50% of the total construction cost, cement is the second largest raw material with the level of about 10%, the rest are other materials and labor costs, depreciation expenses also increased, which affected construction costs and revenue to increase over the same period.