National Construction Sector Grows 9.51%, But Overshadowed by Surge in Material Costs

The national construction sector demonstrated significant resilience by recording a growth of 9.51% throughout the first semester of 2026. This achievement was viewed positively by relevant authorities, especially amidst market dynamics still overshadowed by input cost structure constraints and access to capital for business players.

Head of the Industrial and Construction Statistics Department, Phi Thi Huong Nga, revealed that the recovery of the property market was the main driver of this growth. Government policies in streamlining regulations through the accelerated implementation of the Land and Housing Laws have provided better legal certainty. Consequently, activity in the civil construction sector has revitalized, marked by a 15.6% increase in the number of new construction business entities compared to the same period last year.

However, behind this positive trend, more than 70% of industry players admit to still being burdened by high building material and energy prices. This surge in operational costs directly erodes corporate cash flow. The situation is complicated by slow collection of construction receivables and a limited supply of skilled labor, which hinders the operational scale of many companies.

In addition to technical constraints, administrative challenges and slow land acquisition processes remain classic obstacles that need immediate resolution. Second-quarter 2026 data shows that the competitiveness of construction companies declined slightly, with 24.9% of business players finding it difficult to compete in available project tenders.

On the other hand, public investment through the acceleration of national transportation infrastructure projects has become the backbone maintaining the sector's stability. A 12.7% increase in state budget execution has provided a crucial cushion for contractors amid a sluggish residential property market segment. Business players now expect concrete steps from the government to stabilize material prices and ease access to capital to maintain growth momentum until the end of 2026.