Some construction materials, such as cement, steel, sand, and stone, are expected to see further price increases in the near future. This trend has raised concerns among FDI investors when considering factory construction costs in Vietnam.
Construction material prices continue to rise
According to construction material price statistics from late 2024, many materials have already undergone price adjustments. Cement prices have increased by 50,000 VND per ton and remained stable in the first month of 2025, currently ranging between 69,000 and 220,000 VND per ton. Construction steel prices, after several fluctuations, are now at approximately 13,800 VND per kg.
The prices of construction sand and stone in 2025 are expected to rise sharply, partly due to restrictions on mining in many areas to protect the environment and natural resources. This has led to localized shortages, pushing prices higher. At the beginning of the year, construction sand prices increased by 5%–15% compared to the end of 2024, ranging from 140,000 to 400,000 VND per cubic meter. The price of filling sand rose by 8%–15% due to high demand for infrastructure projects. Meanwhile, the price of construction stone, especially large-sized stone, also showed a slight upward trend.
According to experts, the prices of construction materials such as cement, steel, sand, and stone are expected to continue rising from March 2025, as the market enters its peak construction season, driving demand for materials. However, the extent of price increases will depend on production costs and the availability of raw material supplies.
Impact on industrial construction costs
The rise in construction material prices can directly affect factory construction costs, increasing the total initial investment. To minimize financial pressure, FDI investors planning to build factories in Vietnam should develop early plans and carefully consider the timing of material purchases to take advantage of periods of stable or slightly reduced prices. Additionally, optimizing design to save materials, applying modern construction technologies to shorten building time, and adjusting construction schedules flexibly can help control costs more effectively.
A detailed construction plan, efficient material and equipment management, and the adoption of optimal construction methods enabled the DORCO Living Vina Factory project, with DELCO as the general contractor, to effectively manage costs and minimize the impact of the 2022 steel price surge.
Source: Vietnam Financial Times
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