Latest developments affecting multiple projects linked to Long Thanh airport as fuel and material costs rise

Contractors implementing the Long Thanh airport connectivity projects are encountering difficulties linked to rising fuel prices and higher building material costs. The Dong Nai provincial People’s Committee has issued a directive asking the Department of Construction, Department of Industry and Trade, Department of Agriculture and Environment, and the provincial project management boards to propose solutions to address fuel and materials price volatility that is affecting the progress of key projects currently underway.

Key projects facing implementation challenges

Previously, the Dong Nai Project Management Board reported to the provincial People’s Committee that implementation is being affected in two national key projects: Component 1 of the Bien Hoa – Vung Tau expressway and the Ho Chi Minh City Beltway 3. These projects are being executed along the entire route with aggregate base course, cement stabilization, and asphalt concrete wearing courses.

The contracting units are mobilizing maximum resources in labor and equipment, aiming to complete the works and bring the projects into operation before April 30.

Additional infrastructure projects under pressure

In parallel, the Project Management Board is accelerating other infrastructure projects, including Road 25B (from Nhon Trạch to National Route 51) and Road 25C (from National Route 51 to Huong Lo 19). The 25B and 25C projects are also facing multiple difficulties, primarily related to price volatility and challenges in fuel and construction material supply, which are directly affecting construction schedules.

Cause: fuel and material price volatility

After working discussions with the construction units, the Project Management Board assessed that increases in fuel prices—especially diesel—have raised operating costs for machinery and equipment and increased transportation costs for materials. This has placed significant pressure on construction organization.

Supplier reports also indicate that asphalt supply is facing difficulties.

Data on cost pressures cited in supplier and market reports

Beyond fuel, prices of other construction materials have risen, including cement, steel, sand, and stone. The Project Management Board noted that these increases are linked to the fuel price chain effect, which raises extraction, production, and transport costs.

Impact on construction progress

Fuel price fluctuations are affecting construction progress, particularly as the projects move into the peak phase of asphalt concrete paving. At this stage, projects require large quantities of materials and faster execution, making the cost and supply pressures more acute.