Vietnam's construction materials industry is under pressure from rising costs, supply shortages, and new carbon mechanisms like the EU's CBAM. Sand prices have jumped 45% year on year, and cement and steel producers face higher costs if they do not cut emissions. The government is pushing the sector to move beyond raw extraction and invest in low-carbon production, recycling, and energy efficiency. Only 30-50% of construction waste is recycled in Vietnam, compared to 70-90% in advanced Asian economies. Green materials cost 15-20% more, but public procurement rules do not account for those costs. Industry experts say outdated regulations and pricing systems are the main barrier, not technology. Companies that invest in decarbonization risk weaker cash flow without stronger domestic policy support. The article outlines a sector at a turning point where future competitiveness depends on innovation, recycling capacity, and carbon reduction rather than cheap extraction.
