In the context of the economy entering a new period of acceleration, 2026 is considered a pivotal time for Vietnam’s construction industry. The strong increase in public investment and the recovery signal from the real estate market are creating a significant impetus for the demand for construction materials, especially in the iron and steel industry – a key input factor of all projects.
This recovery significantly boosts the importance of the iron and steel industry as a foundational element for all construction activities.
The Importance of the Iron and Steel Industry in Construction
According to industry reports, total public investment capital in 2026 is expected to reach a scale of more than 1 million billion VND, an increase compared to the previous year and continue to play the role of a “engine” leading growth. The acceleration of disbursement, especially in key transport infrastructure projects, is creating a great demand for construction materials such as steel, cement, stone, and sand.
The projected increase in construction activities will directly enhance the demand for the iron and steel industry, crucial for infrastructure projects.
At the same time, the domestic real estate market also recorded positive signals when many projects were restarted. Notably, the social housing segment is forecast to grow strongly in the period 2025-2026, thereby expanding the room for consumption of construction materials in the coming time.
The domestic steel market recovered clearly
After the previous quiet period, the steel industry has recorded positive changes. In 2025, construction steel production will increase by about 6–7%, while domestic consumption will reach over 8.5 million tons, up nearly 19% over the same period. This increase mainly comes from domestic demand, especially infrastructure and civil construction projects.
This uptick in production reflects the growing reliance on the iron and steel industry for meeting domestic and infrastructural demands.
Entering the beginning of 2026, construction steel prices will continue to be adjusted upwards, marking the recovery trend of the market. The main reason comes from the high cost of input materials, along with the increase in construction demand. This development shows that the steel market is gradually stabilizing and entering a new growth cycle.
Exports face challenges, businesses change direction
In contrast to the prosperity of the domestic market, steel export activities still face many difficulties. Export volumes declined significantly due to weak demand in major markets, while also suffering from increased trade remedies and technical barriers.
In that context, many steel enterprises have actively adjusted their strategies, focusing on the domestic market – where demand is assessed to be stable and tends to grow in the medium term.
This strategic pivot reinforces the essential role of the iron and steel industry in sustaining economic growth.
Rising prices of construction materials create cost pressure
Not only steel, many other building materials also recorded an upward trend in prices in early 2026. Cement enterprises simultaneously adjusted the selling price, with a popular increase of about 100,000 VND/ton. Products such as construction glass, tiles and sanitary ware also recorded increases in both output and consumption.
The increase in material prices brings certain benefits to manufacturing enterprises, but at the same time puts pressure on construction costs. However, in the context that the winning bid price tends to improve, the profit margin of construction enterprises is forecast to remain stable.
The steel industry shows positive signs of recovery, benefiting from the construction recovery in 2026.
Positive outlook but not lacking in challenges
Overall, the prospects of the construction and iron and steel industries in 2026 are positively evaluated, with the backlog of construction enterprises expected to increase sharply. This is an important basis for promoting steel consumption demand in the coming time.
Ultimately, the recovery and growth of the iron and steel industry hinge on overcoming these challenges.
However, the industry still faces many challenges such as high raw material costs, capital pressure, human resource shortages and uneven progress in public investment disbursement. In addition, the difference in financial and administrative capacity will also create a clear differentiation between businesses in the same industry.
Iron and steel continue to play a pillar role
In the context of increasing construction demand and promoting public investment, the iron and steel industry is expected to continue to play a pivotal role in the construction value chain. The recovery of the domestic market, along with the flexible adaptation strategy of enterprises, will be the foundation for the steel industry to maintain its growth momentum in the coming period.
This enduring importance solidifies the iron and steel industry as a cornerstone of Vietnam’s economic landscape.
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