Construction of medical facilities in HCM City slows to a crawl as costs surge

July, 26/2022 - 08:59
The spending on public health construction works in HCM City this year has been a mere 12 per cent of the outlay, the lowest rate in the last 10 years, according to the city Department of Health.

 

The new Oncology Hospital No.2 in HCM City’s Thủ Đức City. VNA/VNS Photo

HCM CITY – The spending on public health construction works in HCM City this year has been a mere 12 per cent of the outlay, the lowest rate in the last 10 years, according to the city Department of Health.

Nguyễn Hoài Nam, deputy director of the department, blamed the slowdown on global wars and rising gasoline prices leading to an increase in the prices of construction materials. Many contractors agree to pay compensation for failing to fulfil their contract since that reduces their losses, he said.

They also face a shortage of workers.

According to the Vietnam Association of Construction Contractors, the prices of concrete and sand have increased by 15 per cent, bricks by up to 10 per cent and decorative tiles by 10-15 per cent.

Steel prices have increased to over VNĐ19 million per tonne after seven hikes this year.

VACC president Nguyễn Quốc Hiệp said the price hikes have hit contractors hardest.

Nevertheless, a number of works have been completed this year such as a high-tech treatment centre at the Children's Hospital No.2 in District 1, Blood Transfusion Hospital No.2 in Bình Chách District, Việt Nam's largest medical testing centre at the Phạm Ngọc Thạch Medical University in District 10, a cardiovascular intervention centre at the Children's Hospital No.1 in District 1, and Oncology Hospital No.2 in Thủ Đức City. – VNS

 

 

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