Since the beginning of May, construction sand prices in many provinces and cities have surged by 5-10% compared to late 2024, ranging from VND 140,000 to 400,000 per cubic meter. Notably, in the “hotspot” of Quang Nam and Da Nang, prices have skyrocketed to VND 700,000-800,000 per cubic meter, and in some places, it even reaches VND 1 million.
According to a report by the Institute of Construction Economics, sand and construction stone prices increased by 0.29-1.3% in May, following a similar rise in April.
The surge in sand prices has led to a 10-15% increase in the cost of commercial concrete, forcing contractors to halt or reduce order volumes. As a result, concrete mixing stations have had to cease or decrease their production capacity, leading to a decrease in the demand for clinker/cement bags and bulk cement.
The escalating construction sand prices have triggered a chain reaction, causing increases in concrete prices, project delays, and a deeper decline in cement consumption in May, which fell by over 20%.
Cement consumption faces challenges.
The Institute of Construction Economics under the Ministry of Construction explained that the price hike in sand and construction stones is due to the high demand for these materials in transportation infrastructure projects and various ongoing construction projects nationwide.
The cement industry is currently in a saturation phase, with stagnant consumption growth and intense price competition due to a supply surplus of about 60 million tons. Domestic consumption in the last five years has remained almost unchanged, hovering around 60-65 million tons annually. The recent supply shortage of key construction materials has further dampened cement consumption. Currently, cement production lines are operating at an average of 75% of their designed capacity.
Mr. Ngo Duc Luu, Acting General Director of Vietnam Cement Corporation, stated that domestic cement consumption is around 60-65 million tons, while the supply is double that amount, creating a significant surplus that challenges production and sales.
Political conflicts and tariffs have also significantly impacted cement production and trade. Recently, cement consumption has been hindered by the scarcity of construction sand, with sand prices surging beyond VND 1 million per ton (higher than cement prices). At the same time, brick prices have also skyrocketed, while cement bears the burden of substantial investment costs.
According to the Ministry of Construction’s calculations, cement consumption in 2025 is expected to increase by 2-3% compared to 2024, reaching 95-100 million tons. Domestic consumption is estimated at 60-65 million tons, with exports of 30-35 million tons. In the best-case scenario, consumption for the year will reach 100 million tons, an increase of 5 million tons compared to 2024. In the worst-case scenario, consumption will be approximately 90 million tons.
Why is Cement Consumption Declining?
The construction industry is facing a challenging situation with a shortage of sand and aggregates, coupled with soaring prices of certain materials such as sand and bricks in many localities. This crisis is not only delaying project timelines but also severely impacting cement consumption.
Unblocking Hurdles, Ensuring Smooth Progress for Key Transport Projects
“In his concluding remarks at the 17th meeting of the Steering Committee, the Prime Minister emphasized the need to commence construction on several large-scale projects in the third quarter of 2025. He stressed the importance of expediting land clearance and addressing material-related issues to ensure the timely achievement of the set goals for this year.”
The Hanoi Skybridge: A Historic River Crossing
The Tran Hung Dao Bridge construction project was inaugurated on the occasion of the 80th anniversary of the August Revolution (19th August) and National Day (2nd September).
Opening the Doors to Private Sector-Led Transportation Infrastructure Development
“Resolution 68-NQ/TW of the Politburo on Private Sector Development (Resolution 68) marked a significant turning point in the thinking around private sector growth, especially within the transport infrastructure sector. The Resolution’s strong emphasis on innovation was well-received by the private business community, setting the stage for a new era of development where the private sector not only participates but also pioneers the creation of large-scale national infrastructure projects.”
The Ministry of Construction: 2,800km of Highways to be Completed by September 2025
As of September 2025, Vietnam will have completed a remarkable 2,800 kilometers of expressway, according to Minister of Construction Tran Hong Minh. This impressive feat of engineering is a testament to the country’s dedication to improving its infrastructure and connectivity. With this extensive network of high-speed roads, Vietnam is poised to boost its economy and facilitate seamless travel and trade across its vast landscape.
