Vietnam’s construction industry is expanding fast. According to the DLS Consultant Report (Q2/2025), total investment capital in construction rose 9.8% year-on-year by the second quarter of 2025. Yet this growth comes with a major challenge: rising construction costs. For developers and investors, Vietnam Construction Cost Management has become a top priority. Let’s take a closer look!
The Rising Cost Challenge in Vietnam Construction Cost Management
Construction costs in Vietnam continue to climb. The DLS Consultant Report (Q2/2025) notes that prices for materials such as aggregate, concrete, and rebar have risen sharply. Labor costs also jumped 7-10% compared to the previous quarter.
Material price volatility remains a key driver. For example, construction sand prices exceeded VNĐ450,000 per cubic meter (about US$17.22) in 2024, up VNĐ20,000 year-on-year. At the same time, steel prices reached VNĐ12,000-13,500 per kilogram, according to Agribank Securities (2025). These price hikes ripple through every stage of a project, from planning to delivery.
Other Factors Behind Cost Increases
Rising material and labor costs are not the only problem. According to research on cost overrun risks (2016), complex administrative approval processes, inefficient bidding methods, and contractor financial difficulties also contribute to overruns. Each delay or error adds to overall costs, straining both public and private investors.
In addition, public-private partnership (PPP) projects face unique cost management challenges. Vietnam Law Magazine (2019) notes that new regulations have tightened oversight to combat corruption and inefficiency.
Government Efforts to Improve Vietnam Construction Cost Management
Vietnam’s government has taken steps to enhance transparency and efficiency in construction spending. Decree 68 (2019)
established clearer rules for managing costs in public projects. The goal is to make budgeting more accurate and reduce the misuse of funds. It is an important move toward more disciplined cost management across the industry.
Business Strategies to Control Costs
Private firms are also adapting to the new landscape. Agribank Securities (2025) reports that many companies are strengthening their financial capacity and improving cost control systems to stay competitive. Firms that monitor expenses closely can respond faster to market changes and avoid unexpected losses.
Some businesses are rethinking project design to reduce waste. Efficient material use, digital project tracking, and contract renegotiation are becoming more common practices. These strategies don’t just protect profit margins—they build long-term resilience in a volatile market.
Read Also: Innovation with Vietnam Digital Urban Planning Tools
Green Building for Long-Term Savings
Sustainability is no longer just a trend—it’s an economic decision. The EOS Global Expansion (2025) report highlights that implementing green building standards and using eco-friendly materials can cut future operating and maintenance costs. Supported by government incentives, this shift also helps Vietnam meet its environmental goals.
Although green construction may have higher initial costs, the long-term savings and improved energy efficiency make it a smart strategy. For investors and developers, going green is now part of the country’s smart construction cost management.
Read Also: Why Green Infrastructure Projects Matter for Southeast Asia Now
Looking Ahead: Vietnam Construction Cost Management
Rising costs are a natural part of a growing economy, but effective planning can turn challenges into opportunities. By improving transparency, adopting modern construction practices, and embracing sustainability, Vietnam’s construction industry can manage costs while maintaining strong growth.
For businesses seeking expert guidance in Vietnam Construction Cost Management, it’s essential to work with experienced consultants who understand both local conditions and global best practices. Eurogroup Consulting Middle East & Asia, a global consulting firm, offers the strategic insights and project support needed to keep costs under control while achieving sustainable growth. Contact Eurogroup Consulting Middle East & Asia to explore tailored solutions for your projects.
