A Positive Perspective on the Rising Prices of Construction Materials

Vietnam ranks among the top countries in the world for the production and export of tiling materials.

The impact of the global economic crisis, high inflation, and unstable supply chains has significantly affected the prices of many goods in general, and construction materials in particular.

As part of the larger real estate market and being closely linked to various industries, the rising cost of construction materials consequently affects related markets, including construction, interior design, and project development.

“Due to the characteristics of a high-growth economy and the rapid rise of the new middle class, as well as influences from neighboring countries, we have been strongly affected by consumer behavior driven by brand and origin inappropriately. For example, the luxury goods market in China in recent years or in Vietnam today.

And now, due to inflation and rising prices, designers, contractors, and investors will focus more on the actual value of products,” shared Mr. Trần Tuấn Đại – Vice President of AMY GRUPO – at a recent event.

AMY GRUPO operates in the construction materials manufacturing sector. The company exports tiling products and SPC wooden floors to 23 countries and territories, including the UK, Italy, Germany, France in Europe, as well as Australia, the US, South Korea, and countries in South America.

In those markets, the selling prices of the company’s products are equivalent to those of local products and those from Spain and Germany. However, due to brand and origin factors, many Vietnamese consumers still have a preference for foreign goods, often purchasing Spanish tiles or German and Swedish-branded wooden floors in Vietnam at prices several times higher, he added.

Aside from the challenges, this situation also brings positive effects. Evidence shows that many Vietnamese real estate corporations and contractors, recognizing that Vietnam ranks among the world’s top producers and exporters of ceramic tiles, have begun specifying high-quality Vietnamese products for their projects to replace unnecessary imported goods.

This has created a growing trend of seeking and using domestic construction materials instead of imported ones. At the same time, it has fostered competition among manufacturers to improve product quality in response to this trend — a very positive development with significant economic benefits.

Accordingly, in 2023, the company plans to restructure its business operations, implement digitalization and automation, focus on technology R&D, and enter new, more demanding markets to test its competitiveness.

The rising prices of goods and construction materials also open up new opportunities for the architecture market.

Regarding the current architecture market in Vietnam, Mr. Dai stated that the process of constructing buildings in general — and housing projects in particular — is undergoing a transformation toward a more positive and professional phase, driven by two main factors:

First, due to socio-economic development, the upper-middle class is expanding rapidly. This group is characterized by people who are well-educated, financially stable, and have rich life experiences. They have a growing demand for modern living standards, comfort, and personal style.

Second, Vietnamese society is experiencing a generational shift. The older generation, who grew up during difficult historical periods and developed traditional values along with diverse life skills through early work experiences with their parents, tend to handle many important aspects of life themselves — including building their own homes with minimal external services. As a result, professional consulting services such as architectural design have limited influence on this group.

However, the new generation of adults, who were raised in better living conditions and focused primarily on education, tend to value professional services more as they grow up. They prefer to purchase all-in-one service packages that can meet their needs, especially those related to professional design and construction.

With these two defining characteristics, the Vietnamese design market is becoming increasingly vibrant and dynamic, with rising demand fueled by rapid economic growth. The development is based on relatively modest infrastructure, which now needs to be upgraded to match new social and economic conditions.

Commenting on the trend of favoring Western styles, Mr. Dai noted that in such a dynamic and fast-growing market, learning from developed countries is inevitable. However, he emphasized that this process must be scientific and selective, ensuring that the adopted advancements truly meet the needs of local people.

“Architecture and interior design are strongly influenced by geography, climate, traditions, and cultural history. These factors form the foundation of creativity — allowing us to absorb global innovations and harmonize them to create high-quality, distinctive, and relevant works,” Mr. Dai said.

He also emphasized that Vietnamese society, especially the younger generation, is increasingly interested in design across various fields as a way to create aesthetic and emotional value. The architecture and interior design industries are attracting a growing pool of talent, while design faculties at universities are receiving greater investment and specialization. As a result, Vietnam’s design and architecture workforce is becoming more integrated with global professionals, and together with domestic talent, is gradually meeting the strong and evolving demands of Vietnamese people.