Vietnam construction materials see resurgence with price increase and accelerated public investment.

The construction materials market in Vietnam has seen a noticeable rebound at the beginning of 2026, driven by increased public investment and a surge in demand for residential construction materials.
Steel producers have been raising prices amid market fluctuations and consistently high input costs. Prices for construction steel have risen across all regions of the country, with major brands like Hoa Phat, Vietnam-Italy, Vietnam-Germany, and Vietnam-Singapore keeping prices at elevated levels. The Central region has even surpassed the northern regions in some cases. Companies like Vietnam-Italy Steel JSC and Vietnam-Germany Steel have recorded the highest prices nationwide. Cement producers have also followed suit with price hikes to offset high energy and raw material costs.
Despite recent moderate price increases, ongoing adjustments reflect the sustained pressure from costs of iron ore, coking coal, and energy. Construction steel production rose by 6%-7% in 2025, driven by demand from infrastructure and housing. Output levels for ceramic tiles, sanitary ware, and construction glass have also increased, indicating an overall improvement in building material segments.
The vice chairman and secretary-general of the Vietnam Building Materials Association, Thai Duy Sam, noted that the acceleration of project construction across the country has led to an increase in material consumption and prices. This bodes well for stronger growth in 2026.
Looking ahead to the remainder of the year, the construction and building materials industry report from MB Securities predicts that 2026 will be a pivotal year in the public investment cycle from 2026 to 2030. With a high supply of real estate expected to continue, growth in the construction sector will come from both public investment and residential construction, especially in the social housing segment.
Faster public investment usually leads to a rise in demand for heavy materials like stone, sand, concrete, asphalt, and steel. The completion of major national projects by the end of Q2 2026 is likely to expand construction firms’ backlogs. Despite the positive outlook for the sector, construction companies still face challenges such as labor shortages, capital constraints, and outdated pricing norms.
Efforts are being made to ensure the stability and quality of construction materials, along with promoting green and environmentally friendly options. Construction Law No. 135/2025/QH15 has updated regulations to encourage the use of sustainable materials, while Decree No. 09/2021 has been revised to address gaps and improve material classification and supply-demand coordination. Amidst these changes, the construction sector in Vietnam is poised for growth in the coming year, but challenges remain in addressing labor shortages and capital constraints.