What is the solution when construction material prices increase?

(Chinhphu.vn) - According to the report on the construction materials market developments of the Institute of Construction Economics (Ministry of Construction), in June 2025, the price of construction sand increased from 29.95 - 58.45% compared to the previous month; the price of construction stone increased from 7.3 - 11.11%.

It is necessary to review and evaluate mineral mines and speed up the progress of putting licensed sand and stone mines into exploitation to promptly serve key national projects - Photo: Construction Newspaper

Sand and stone prices increase

Specifically, the average monthly steel price 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 increased by 200 VND/kg for all types, an increase of 0.16 - 0.33% compared to the previous month. The reason for the increase in asphalt price is due to the impact of gasoline prices and transportation costs.

Cement prices are stable, unchanged from last month. Cement production lines are sufficient to meet domestic consumption and export demand to countries around the world . Although production costs have also increased, due to large supply, factories must balance to achieve profits.

Construction sand prices increased by 29.95 - 58.45% in the region compared to May 2025. The reason, according to the Institute of Construction Economics , is due to high construction demand, scarce supply, and the temporary suspension of licensed sand mines due to many reasons (license expiration; landslides, overlap; proactive cessation of exploitation...). Especially in the Central provinces, constructions mainly use natural sand sources, and there are no stations to produce crushed sand.

Construction stone prices increased from 7.3 - 11.11% compared to May 2025.

The reason is due to the high demand for construction, and at the same time due to the impact of increasing prices of construction materials (construction sand). Localities do not have enough natural sand, so they use crushed sand for construction, especially in the North and South.

"In general, in June, construction materials such as cement, steel, and asphalt were stable, not much fluctuation compared to the previous month, only the prices of sand and construction stone increased. Due to fluctuations in material prices, the value of construction types increased from 0.68 - 3.14% compared to the previous month," the Institute of Construction Economics assessed.

Scarcity of materials

It can be seen that the scarcity of construction materials has significantly affected the construction progress of key national projects.

Mr. Nguyen Tien Viet, Deputy General Director of Vietnam Airports Corporation (ACV), informed that as of June 10, the total volume of stone materials brought to the Long Thanh airport project site reached about 1.38 million m3, while the registered demand for the whole year was up to nearly 4.92 million m3, still lacking more than 3.54 million m3. Up to now, the supply rate of stone has reached about 9%.

As the contractor for the project to renovate and expand Nguyen Tuan Street ( Hanoi ), a representative of HUGIA Development Investment Joint Stock Company said that the price of construction materials is increasing by 15-20% compared to last month, especially stone and sand, causing businesses to struggle because costs have increased significantly.

The company said that the price of construction stone and sand at the foot of the construction site ranges from 470,000 to 500,000 VND/m3, but is also scarce. Currently, contractors still have to accept buying materials at high prices to ensure the progress of the project.

Regarding the source of materials for key projects in the South, recently, on June 26, the leaders of Dong Nai province had a meeting with units on mineral allocation for key projects in the South. Among them are many large projects such as Long Thanh airport, Bien Hoa - Vung Tau expressway, and Ho Chi Minh City Ring Road 3.

At this meeting, the Department of Agriculture and Environment of Dong Nai province said that the local landfill material mines proposed by investors have basically been licensed by the province to ensure the supply of materials for project construction. The fill soil alone has basically met the demand for contractors to speed up the construction of the roadbed.

At the same time, regarding the 50% increase in mining capacity according to Resolution No. 168/NQ-CP dated June 11, 2025 of the Government, after review, Dong Nai has 14 quarries that are operating and qualified and have proposed to apply. If approved, from now until the end of the year, these quarries can provide an additional 5.2 million m3 of stone, enough to promptly meet the key projects of the province and the Southern region.

According to a representative of the Vietnam Association of Building Materials, construction material prices in the second half of 2025 will continue to be affected by many factors such as financial policies, supply-demand imbalances, rising energy costs and fluctuations in the real estate market. Enterprises need to proactively seek stable supply sources and increase material reserves for projects to minimize risks due to price fluctuations.

Many experts believe that to effectively resolve the issue, we cannot rely on individual efforts but need a comprehensive, synchronous, and consistent strategy from the central to local levels. In the immediate future, we need to review and evaluate mineral mines and speed up the process of putting licensed mines into operation. At the same time, we need to complete the auction procedures with qualified mines to supplement the supply in a timely manner.

At the same time, to reduce the negative impact of rising material prices, investors and construction contractors need to develop a system of design and construction standards that saves materials, reduces waste and is suitable for Vietnam's climate conditions. In particular, it encourages optimal construction design, avoiding waste in height, covering materials and overly thick concrete structures.

On the other hand, encourage the use of recycled materials such as thermal power slag, recycled aggregates from demolished concrete, recycled plastics, etc. These measures will reduce the use and contribute to limiting the "supply not meeting demand" situation of traditional materials in construction.

Faced with unusual developments in the construction materials market, on June 10, Prime Minister Pham Minh Chinh issued Official Dispatch No. 85/CD-TTg on strengthening solutions to manage and stabilize construction material prices.

The Prime Minister assigned the Minister of Construction to urgently review, direct and guide localities to review, evaluate and synthesize the demand for construction materials in the area; coordinate with the Ministry of Agriculture and Environment to guide and direct localities to plan and identify mines, supply sources, capacity and supply capacity to ensure supply-demand balance, promptly handle difficulties and problems, especially local shortages in each area, locality and nationwide.

The Minister of Industry and Trade directed market management agencies to strengthen inspections, promptly detect and handle acts of speculation, hoarding, and unreasonable price increases; thoroughly handle construction materials of unknown origin, counterfeit goods, fake goods, and poor quality goods.

The Ministry of Public Security shall preside over and coordinate with relevant agencies to investigate and strictly handle organizations and individuals who manipulate the market, speculate and profit in the production and trading of construction materials, and those who cover up, protect, corrupt, and ignore violations that recur without thoroughly handling them.

Phan Trang

Source: https://baochinhphu.vn/giai-phap-nao-khi-gia-vat-lieu-xay-dung-tang-cao-102250701160112202.htm