Vietnam building materials sector faces carbon pressure and supply shortages, pushes for green transition

Vietnam's building materials industry is under pressure from rising costs, supply shortages, and carbon regulations. Sand prices are up 45% year on year, and asphalt has climbed nearly 32%. The EU's Carbon Border Adjustment Mechanism (CBAM) will hit steel and cement exporters from 2026, raising costs for carbon-intensive producers. The government is pushing for greener production, but companies say low-carbon materials cost 15-20% more and public procurement still favors traditional options. Recycling rates are low: only 30-50% of construction waste is recycled versus 70-90% in advanced Asian economies. Experts say outdated regulations and pricing systems are the main barriers, not technology. The sector needs better policy coordination, higher resource taxes on raw extraction, and updated procurement guidelines to make recycled materials competitive. Without these changes, Vietnam risks losing export markets and falling behind in the green transition.