In Ho Chi Minh City, construction material prices surge, squeezing contractors, homebuilders

Prices for construction sand and crushed stone rose by as much as 73 percent and 63 percent, respectively, from a year earlier, establishing a new price level for key building materials.

Its June price report showed quarry prices continued to edge higher. 

Crushed stone at Phuoc Hoa Fico's Ong Trinh quarry increased to VND225,000 (US$8.6) per cubic meter in June from VND215,000 ($8.2) in May, while stone powder rose to VND160,000 ($6.1) from VND156,000 ($5.9) per cubic meter.

Prices at other quarries remained elevated, with crushed stone quoted at VND209,500 ($8) per cubic meter at Tan My quarry, VND250,000 ($9.5) at Tam Lap 3 and VND270,000 ($10.3) at Nui Thi Vai Lot 14A, while some producers listed prices as high as VND390,000 ($14.9) per cubic meter.

Construction sand was quoted at VND270,000 per cubic meter at Xuyen Moc Sand Mine 55 and VND340,000 ($12.9) at the Dau Tieng reservoir branch sand mine.

Reference prices compiled by the department on July 8 from reports submitted by local authorities showed retail prices had climbed much higher, with crushed stone listed at between VND720,000 ($27.4) and VND780,000 ($29.7) per cubic meter and construction sand at VND450,000-480,000 ($17.1-18.3) per cubic meter.

Some building material retailers in Ho Chi Minh City said delivered prices for crushed stone exceeded VND820,000 ($31.2) per cubic meter in early July.

Other construction materials have also become more expensive. 

Cement producer Vicem Ha Tien raised prices in early June to offset higher energy costs, while steelmakers, including Hoa Phat, increased prices at least twice in March. 

Rebar D10 (CB300-V) from major producers such as VNSteel and Vina Kyoei was recently listed at about VND15.36 million ($584.8) per tonne in Ho Chi Minh City before discounts.

The rising costs are increasing pressure across the construction supply chain. 

Contractors with fixed-price contracts signed in late 2025 face mounting losses and are being forced to slow projects or renegotiate terms.

Higher material costs are also pushing up the cost of building homes by tens to hundreds of millions of dong, prompting some households to reduce project sizes or postpone construction.

Industry experts expect construction material prices to remain elevated through the second half of 2026 as supply constraints and logistics costs persist, while priority demand from major infrastructure projects continues to tighten the market.