Rising construction material prices are placing a heavy burden on construction projects.

Sand is one of the building materials whose price is rising rapidly and whose supply is scarce.

Since the beginning of the year, the prices of many key construction materials such as steel, cement, sand, and stone have recorded sharp increases, causing significant repercussions for construction progress and payment capabilities at many construction projects nationwide.

According to statistics from the Ministry of Construction, the price of construction steel has increased by an average of about 12-15% compared to the same period in 2024, while the price of cement has increased by 8-10%, and construction sand by more than 20% in some high-demand areas such as Ho Chi Minh City, Hanoi, and Binh Duong . This development has led to a significant increase in input costs for construction projects, directly affecting the progress and disbursement plan.

The rapid and unstable increase in construction material prices is causing many investors and construction contractors difficulties in balancing finances and implementing projects according to plan. Many contracts have had to adjust schedules, or even be temporarily suspended pending updated unit prices.

Mr. Nguyen Van Hung, director of a construction company in Hanoi, said that current construction costs have increased by about 15-20% compared to the initial estimates. Without a price adjustment mechanism or timely support, it will be very difficult for businesses to complete projects on schedule. This situation particularly affects projects using state budget funds and public investment capital.

Some localities have also reported that, due to the slow adjustment of unit prices, many projects have been delayed by 1-3 months, affecting disbursement plans and the efficiency of investment capital utilization.

In response to this situation, the Ministry of Construction has issued a document requesting localities to promptly update construction price indices and strengthen market control over construction materials, combating speculation and price manipulation. The Ministry of Finance is also coordinating and researching mechanisms to adjust budget estimates in accordance with market price fluctuations.

Experts predict that if construction material prices continue to remain high or increase further in the final months of the year, many key projects risk delays, impacting infrastructure development goals, investment attraction, and the country's economic growth.

According to experts, there are several main reasons for the sharp increase in the price of building bricks – and construction materials in general – in Vietnam recently. First, input costs have risen significantly. Prices of raw materials such as sand, stone, coal, slag, and clay have escalated: sand prices have increased by about 10% compared to the end of 2024 (140,000 – 400,000 VND/m3), and stone and coal prices have also risen sharply. The price of slag used for firing brick kilns has increased by 40-50% compared to the previous year…

Furthermore, energy and transportation costs remain high. Rising prices of gasoline, electricity, and natural gas (affecting cement and brick production) have significantly increased material transportation costs. In remote areas like Dak Nong, sand transportation costs have increased two to three times due to the long distances. Meanwhile, supply is limited.

Due to stricter environmental regulations on sand, stone, and clay mining, some mines have even had to cease operations. Not to mention damage from natural disasters such as storms and floods (for example, after Typhoon Yagi), which have also caused many brick factories to reduce capacity or shut down. Meanwhile, the demand for traditional fired bricks remains high, while the supply has decreased slightly.

Cement production at La Hien Cement Joint Stock Company - VVMI.

Another factor is the surge in demand from public investment and the real estate market. From the beginning of 2025 until now, a series of infrastructure, social housing, and key transportation projects have commenced, leading to a surge in demand for materials. The real estate market has recovered after amendments to the Land Law, Housing Law, and Real Estate Business Law, coupled with expanded public investment, causing total demand to far exceed supply.

In the market, speculation, hoarding, and price manipulation also have a significant impact. In some areas (Da Nang), speculation and hoarding have led to unreasonable price increases for sand and bricks. The Prime Minister even had to request the police to investigate and handle this market manipulation.

Specifically, in Official Dispatch No. 85/CĐ-TTg on strengthening measures to manage and stabilize construction material prices, Prime Minister Pham Minh Chinh instructed the Minister of Construction to urgently review, direct, and guide localities to review, assess, and summarize the demand for construction materials in their areas; coordinate with the Ministry of Agriculture and Environment to guide and direct localities in planning, identifying mines, supply sources, capacity, and supply capabilities to ensure a balance between supply and demand, and promptly address difficulties and obstacles, especially localized shortages in each area, locality, and nationwide.

At the same time, the Minister of Industry and Trade directed relevant market management agencies to strengthen inspections, promptly detect and handle acts of speculation, hoarding, and unreasonable price increases; and thoroughly deal with construction materials of unknown origin, counterfeit goods, imitation goods, and substandard goods.

The Ministry of Public Security is tasked with leading and coordinating with relevant agencies to investigate and strictly handle organizations and individuals who manipulate the market, speculate for profit in the production and business of construction materials, and those who cover up, protect, engage in corruption, or turn a blind eye to the recurrence of violations without thorough handling.

On the other hand, impacts from global supply chains such as international logistics disruptions, rising freight costs due to the oil and gas crisis, and geopolitical tensions also contribute to the increased cost of importing raw materials.

Along with the impact of weather factors such as storms and floods, unusual weather can disrupt brick production and transportation, causing shortages and driving up prices. Psychological factors also play a significant role. The warming real estate market, with people tending to build or renovate their homes, creates a greater desire to buy bricks, contributing to the increase in brick prices in particular and building materials in general.

Affected by rising construction material prices, many projects, businesses, and individuals in Son La province are facing difficulties as prices increase while supply is experiencing localized shortages, impacting construction plans and progress, as well as incurring unnecessary costs.

According to Dao Tai Tue, Director of the Son La Department of Construction, overall, the supply of construction materials in the province basically meets demand. However, the main reason for the localized shortage is the low rate of licensed mining operations. Currently, only 38 out of 162 mines in the province have been licensed and are operating, accounting for a mere 23% of the approved plan. This ratio has caused an imbalance between supply and demand, especially for fill soil, stone, and construction sand in some localities.

According to Mr. Tue, the current licensing process for mining common construction materials involves many steps and is time-consuming, causing difficulties for businesses and delaying the commissioning of mines. These are significant challenges that both state management agencies and businesses are facing.

Similarly, the Hanoi People's Committee also sent Document No. 3873/UBND-ĐT to the Ministry of Construction, requesting prompt guidance on survey methods and price adjustments to alleviate difficulties for public investment projects.

Surveys show that from the beginning of the second quarter of 2025 until now, the prices of key construction materials such as steel, cement, sand, and stone have all increased sharply, with some items rising by 15-25% compared to the beginning of the year. The market has also recorded a shortage of construction sand in many areas of the North, forcing contractors to halt construction or adjust schedules.

At several key projects in Hanoi, such as the Ring Road 4, the West Lake renovation project, and the road connecting Gia Lam and Dong Anh districts, many contract packages have been seriously affected. Some contractors have reported that cost estimates prepared at the beginning of 2024 are no longer consistent with actual prices, leading to the risk of heavy losses or even abandonment of the projects – the Hanoi People's Committee cited as an example.

Construction experts warn that if material prices continue to rise uncontrollably and without a timely update mechanism, public investment projects will not only be delayed but also affected in terms of disbursement, thereby hindering local economic growth.

Rising construction material prices are not only a technical problem but also a policy challenge requiring swift action from both central and local authorities. Recommendations like Hanoi's, if not addressed promptly, will cause numerous public projects to stall – an unacceptable situation during this crucial period of public investment disbursement.

bnews.vn

Source: https://baolaocai.vn/vat-lieu-xay-dung-tang-gia-don-ganh-nang-len-cac-cong-trinh-post881338.html