This may cause difficulties for investors, contractors and local authorities.

Reviewing the building material market in the first six months of the year, MOC said there were fluctuations, while supply shortages have been predicted for sand and stone.

Because of fluctuations of material prices in the world market, steel prices increased by VND20,000 per ton in the first three months 2023. Steel was traded at VND17,300 on average in the first quarter, up 6.1 percent over the fourth quarter in 2022 and down 10.3 percent over the same period last year.

However, steel prices went down in the second quarter, decreasing by 4.5 percent compared with the first quarter and 17.8 percent compared with the same period last year, which was attributed to a sharp fall in domestic demand.

Cement prices have been stable with prices in the south higher than in the north and the central region because of fewer cement plants and transportation costs. 

In the second quarter, the cement price increased by 2.2 percent over the same period last year and was relatively stable compared with late 2022.

Meanwhile, sand prices were on the rise in the first half of the year. MOC’s statistics showed a 1.5 percent increase a month due to increased construction demand.

The increases were sharper in the south (3.4 percent a month on average). Experts noted that the average prices in the south are usually higher by 1.3-1.5 times than in the north and central region.

In general, prices in the second quarter 2023 were 2.5 percent higher over the first quarter.

Stone prices are increasingly slightly, but they have been stable. The prices in the first quarter increased by 2.7 percent over late 2022, and in the second quarter increased by 2.7 percent over the first quarter.

Dam Duc Bien, director of MOC’s Construction Economics Department, said price increases are attributed to higher demand caused by large projects, especially the North-South Expressway Phase 2 in the central and southern regions.

An upward price is expected for the next three months as many projects have kicked off, including 10 component projects of the North-South Expressway in 2021-2025 (the section from Ha Tinh to Khanh Hoa), the Belt Road 4 in Hanoi, Belt Road 3 in HCM City, Bien Hoa - Vung Tay Highway, Khanh Hoa - Buon Ma Thuot, and Chau Doc - Can Tho - Soc Trang Highways.

Vu Diep