Rising construction material costs delay Can Tho projects, contractors incur losses

Can Tho’s economic growth in the first quarter of 2026 fell short of expectations, driven in part by slow disbursement of public investment and a backlog of projects still unresolved. Rising construction material costs also weighed on project progress.

Revenue and growth performance in Q1

At the city’s March regular meeting, Truong Canh Tuyen, chairman of the Can Tho People’s Committee, said budget revenue in the first three months reached more than 9.8 trillion VND (about 36% of the annual plan), while domestic revenue was over 9.4 trillion VND.

In Q1, Can Tho’s GRDP grew just above 7%, which was below the national average and below the city’s target range of 9.5%–10%.

Public investment disbursement remains low

Tuyen said the disbursement rate of public investment remained below requirements, at only 7.4% of the plan. He attributed part of the shortfall to higher building material prices. For example, the price of a cubic meter of stone rose from about 400,000 VND to 1.2 million VND. Fuel price increases also raised machinery and equipment costs on site.

Contractors reported that some were relieved when contracts were terminated, as current material prices caused costs to increase faster than revenues. Enterprises also proposed price adjustment mechanisms and measures to support interest rates, logistics, and other costs.

Backlog projects and business conditions

Tuyen noted that many backlog projects remain despite reviews and efforts to resolve them. He also said forecasting and information gathering by some agencies had not been proactive, leaving businesses with difficult operating conditions amid rising input costs and increasing market risks.

Sector performance and disbursement figures

The Can Tho Finance Department said Q1 growth was above 7%, ranking 31st among 34 provinces and cities.

For 2026, the city was allocated more than 19.2 trillion VND in public investment, but by the end of March only about 1.4 trillion VND had been disbursed.

Industrial and construction sectors underperformed. Some core industries faced order difficulties, and the real estate sector was held back by legal and administrative issues. The services sector also failed to meet expectations.

Outlook and policy priorities

To achieve double-digit growth this year, Tuyen said the remaining quarters would be very challenging. He urged departments and localities to implement tasks decisively and in a coordinated manner, accelerate public investment disbursement, speed up key projects, and promptly resolve long-standing backlog projects.

He also called for active monitoring of market conditions and issues affecting trade and exports, and for stronger inspection of gasoline and diesel trading to address violations.