Vietnam Announces 2023 National Construction Price Index

The Ministry of Construction of Vietnam has released the national construction price index for the year 2023, providing a crucial metric for the construction industry's pricing trends across the country.

Vietnam Announces 2023 National Construction Price Index
Photo by Tron Le / Unsplash

In a significant move for the construction sector, the Ministry of Construction in Vietnam has issued Decision 167/QĐ-BXD, announcing the national construction price index for 2023.

This index serves as a relative indicator, reflecting the fluctuation levels of construction prices over time nationwide. Notably, this index is utilized as a basis for determining investment capital rates, analyzing average price fluctuations when assessing reserve costs in total investments, and other tasks related to evaluating construction price variations for macro-management and operations. It is important to note that the published national construction price index is not employed for adjusting construction contract prices.

The 2023 index accounts for variations in construction costs, equipment costs, project management expenses, construction investment consulting fees, and other cost items. Specific cost categories like compensation, support and resettlement, mine and explosive clearance, interest during construction (for projects using loan capital), and initial working capital (for production and business projects) are not included in the calculation of the national construction price index. The methodology for determining this index is in accordance with Circular 13/2021/TT-BXD issued by the Minister of Construction on August 31, 2021, which provides guidance on determining technical-economic indicators and quantity surveying for construction works. The baseline year for the national construction price index is set to 2020.

Input cost factors for determining the index include the price of construction materials, construction labor rates, and the cost of machinery and construction equipment based on the price announcements from the Department of Construction in various localities. The national construction price index for 2023 is calculated in percentages, indicating changes compared to the base year 2020 and the previous year 2022 across various categories of common construction works nationwide.


Quản lý thị trường (Market Management) - A publication covering market management activities, regulations, and insights in Vietnam.