Prices of sand, stone, cement, and other construction materials have risen unusually high, and a materials crisis may recur.

In June 2025, construction material prices continued to rise sharply and unusually, especially construction sand, which surged by a shocking 58.45%, raising concerns about a potential recurrence of the materials crisis seen in 2022.

Steel and asphalt prices rose slightly.

According to a report from the Institute of Construction Economics ( Ministry of Construction ), in June 2025, the average price of steel increased by 100-270 VND/kg depending on the type and region, an average increase of 1.2% compared to May. The price of asphalt also increased by 200 VND/kg for all types, an increase of 0.16-0.33% compared to the previous month due to the impact of fuel prices and transportation costs.

Cement prices remain stable.

Regarding cement, prices remained relatively stable, with little fluctuation compared to May. Cement production lines were sufficient to meet domestic and export demand. Although production costs increased, due to the large supply, factories adjusted costs to maintain profitability.

Prices of sand and construction stone have increased dramatically.

Notably, the price of construction sand has seen a "shocking" increase of 29.95-58.45% compared to May. The main reason is high construction demand coupled with scarce supply, and the temporary suspension of operations at many licensed sand mines due to various reasons such as expired licenses, landslides, overlapping areas, or voluntary cessation of exploitation.

Particularly in the central provinces, construction projects mainly use natural sand, but the lack of crushed sand production plants exacerbates the shortage.

Construction stone prices increased by 7.3-11.11% compared to May 2025, mainly due to increased construction demand and the impact of rising construction sand prices. Localities lacking natural sand have to use crushed sand for construction, especially in the North and South.

Due to significant fluctuations in material prices, the value of various types of construction projects increased by 0.68-3.14% compared to the previous month, directly impacting construction investment costs.

This latest price increase has caused many businesses to worry about a potential recurrence of the materials crisis, similar to 2022 when the prices of steel, cement, and sand skyrocketed, leading to numerous construction projects being stalled, cost overruns, contractor bankruptcies, and tender reorganizations.

Pressure from multiple large projects

In recent times, key transportation infrastructure projects have been simultaneously implemented and accelerated. A series of public works, housing projects, and real estate projects in many localities have also been constructed to achieve the growth target of over 8% by 2025.

This increases pressure on the entire construction industry amidst a supply shortage, and could push construction material prices up further in the near future.

To adapt, construction businesses need to effectively manage their costs. In this challenging environment, profitability no longer comes solely from revenue but from the ability to control costs – a factor that is becoming a true test of the industry's management resilience and financial strength.

Material costs typically account for the largest proportion of construction costs, so any fluctuations in input prices can quickly erode a company's profit margin.

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Source: https://baonghean.vn/gia-cat-da-xi-mang-vat-lieu-xay-dung-tang-cao-bat-thuong-con-khung-hoang-vat-lieu-co-the-tai-dien-10301502.html