Maintain the pace of construction.
Amidst the early summer heat of Central Vietnam, the construction site of the coastal road 129 (Vo Chi Cong road) - a project worth over 2.056 billion VND - continues to operate at a rapid pace. Dump trucks move in and out constantly, machinery operates at full capacity, and workers are divided into shifts to take advantage of the favorable weather.
Mr. Tran Hoai Nam, Commander of CII Infrastructure Construction Joint Stock Company - the contractor for the connecting road from Vo Chi Cong Street to National Highway 1 (the section through Thang Dien commune), approximately 3.7km long, said that the construction output has reached over 40% so far. However, only over 2km of land has been handed over, significantly affecting the progress.
“The biggest challenge is the supply of materials. Many mines have run out of reserves or their licenses have expired, forcing us to transport materials from the border area of Quang Ngai province, a distance of about 60km, which significantly increases costs,” Mr. Nam said.
Cost pressures became increasingly evident in the first quarter of 2026, with a sharp increase in input prices. Diesel prices at one point rose by more than 10%, driving up operating and transportation costs; the proportion of fuel costs increased from 12-15% to nearly 20%.
Along with that, many types of construction materials have seen widespread price increases of 20-40%: ready-mix concrete ranges from 1.12-1.59 million VND/m3; cement from 1.43-1.86 million VND/ton; and steel coils from approximately 15,600-15,700 VND/kg. Notably, construction sand and plastering sand have increased to around 630-750 thousand VND/m3 (up to 40%), and 1x2 crushed stone is around 640 thousand VND/m3.
Price fluctuations have significantly increased construction costs, directly impacting project efficiency. Mr. Nguyen Van Thuong, Director of the Da Nang Investment and Construction Project Management Board for Transportation and Agriculture Projects, stated that the major obstacles currently remain land availability, material sources, and rising prices.
"We are coordinating with relevant units to address each obstacle, while also seeking solutions to supplement supply so as not to disrupt the progress," Mr. Thuong said.
At the 29/3 Park renovation project (total capital of nearly 673 billion VND), construction work is being maintained simultaneously across all fronts. The contractor proactively stockpiled approximately 40-50% of essential materials, mobilized 40-60 workers, and organized flexible construction.
To date, the value of work completed has reached over 530 billion VND (approximately 78.8%), with the goal of completion by September 2026. The investor also regularly inspects the site, reviews and proposes adjustments to unit prices according to market fluctuations to ensure they are in line with reality.
Similarly, at the Nam Thang Binh Industrial Park, despite only recently starting construction, the work teams have been operating continuously in three shifts per day, aiming to complete the infrastructure before June 30, 2026. Mr. Le Hung Anh, Chairman of Bin Corporation (the investor), said that the company is focusing on implementing urgent items, closely adhering to the schedule and coordinating closely with contractors and supervisory units.
However, pressure from rising fuel and material prices is posing a major challenge. “We have proactively shared information with the contractor by reviewing and adjusting unit prices to maintain construction progress, and at the same time, we have requested relevant authorities to promptly provide support mechanisms to help the project proceed smoothly, utilize land efficiently, and minimize resource waste,” said Mr. Le Hung Anh.
Businesses are finding ways to cope.
Rising material prices are also affecting the civil construction sector. Mr. Nguyen Cong Hieu, Director of Trung Nam Hieu Trading and Transport Services Co., Ltd. - a supplier of construction materials in Hai Van ward, said that never before have material prices increased so rapidly and simultaneously as they are now, forming a new, high "price level".
This has made suppliers hesitant to sign long-term contracts for fear of continued price fluctuations and uncertain supply. Mr. Le Huu Ngoc, a civil construction contractor in Thanh Khe ward, said that many contracts were signed from the end of 2025, when material prices were still low.
"Currently, prices have increased sharply, and contractors have to bear almost the entire difference themselves. Many projects are no longer profitable, and some even risk losses," Mr. Ngoc said.
Contractors say they are in a difficult position: stopping construction would violate the contract, but continuing would mean accepting reduced or lost profits. To maintain operations, businesses are forced to resort to various solutions such as adjusting schedules for each item, optimizing material usage, minimizing waste, and seeking more stable supply sources. However, in the context of constantly fluctuating prices, these solutions are mostly temporary and cannot address the root of the problem.
Not only businesses, but also residents are affected. Ms. Le Thi Hanh, residing in Ngu Hanh Son ward, said that her family's plan to build rental apartments had to be temporarily postponed. "The cost has increased by several hundred million dong compared to the initial estimate. If we continue construction, the investment return will no longer be as calculated," Ms. Hanh said.
According to a representative from the Da Nang City Department of Construction, the increase in construction material prices is directly affecting the cost and progress of construction projects. The Department regularly updates and publishes construction material prices to serve as a basis for investors to adjust their budgets.
However, if the fluctuations persist, delays are unavoidable. With increasing pressure to disburse public investment funds, rising costs further complicate the project implementation. The current difficulties at the construction site are only the tip of the iceberg; behind them lies a major bottleneck in the supply of materials that does not meet actual demand, leading to inflated prices.
Source: https://baodanang.vn/cong-truong-vuot-kho-3332717.html
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