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What the Q3 survey says about construction conditions
The National Statistics Office of Vietnam (NSO), under the Ministry of Finance, surveyed construction enterprises about their business conditions. Of 5,974 selected firms, 5,826 responded, a 97.5% response rate within the sample. The survey was designed to represent construction across 34 provinces and centrally governed cities. Its figures are respondents’ assessments and expectations—not audited accounts or direct measures of construction output. NSO’s Q3 2026 business-trend survey reports the following comparison with Q2:
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| Assessment of Q3 business conditions | Share of construction enterprises |
|---|---|
| More favorable | 30.9% |
| Stable | 41.4% |
| More difficult | 27.7% |
The balance—the share reporting improvement minus the share reporting difficulty—was positive by 3.2 percentage points. That indicates a modestly favorable tilt in reported sentiment, not a 3.2% increase in activity. A plurality described conditions as stable, and the results do not establish that every firm or the sector as a whole improved.
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Were firms getting more construction contracts?
Contract reports were more positive than negative, although most firms said the number of new contracts had not changed. Comparing Q3 with Q2, 28.5% reported an increase, 52.0% no change, and 19.5% a decline. In other words, 80.5% reported that contracts either increased or held steady; this is a share of respondents, not a measure of contract value or project volume.
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The Q4 outlook was similarly cautious. Compared with Q3, 29.0% expected new contracts to increase, 53.8% expected no change, and 17.2% expected a decline. These are expectations, not Q4 results.
Why did cost pressure persist alongside better sentiment?
Improved sentiment does not mean input costs eased. In Q3 compared with Q2, firms continued to report increases in production costs:
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| Cost measure | Reported an increase | Reported no change | Reported a decrease |
|---|---|---|---|
| Total production cost per unit | 53.3% | 33.1% | 13.6% |
| Direct material costs | 56.7% | 31.0% | 12.3% |
| Direct labor costs | 49.0% | 39.6% | 11.4% |
For Q4 compared with Q3, 50.1% expected total unit costs to rise, 53.2% expected direct material costs to rise, and 46.5% expected direct labor costs to rise. These figures describe expectations only; they do not establish what costs actually did in Q4.
Demand and cost indicators can move in different directions. Firms may judge operating conditions more favorably even while materials and labor become more expensive—for example, if contract flow or other conditions improve. The survey records these separate assessments, but it does not show whether firms passed costs on, absorbed them, or improved their margins.
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What challenges did construction firms cite?
Respondents could name multiple difficulties, so the percentages overlap and do not add up to 100%. High material prices topped the list, followed by a lack of new contracts:
| Reported Q3 operating difficulty | Share of enterprises |
|---|---|
| High material prices | 65.0% |
| Lack of new construction contracts | 39.7% |
| Unfavorable weather | 26.1% |
| Delayed settlement of public construction debts | 25.5% |
| Insufficient material supply | 24.1% |
| Difficulty recruiting workers who meet requirements | 22.9% |
| Insufficient working capital | 22.2% |
| Complicated administrative procedures | 18.7% |
| Slow site clearance | 16.2% |
| Lack of tender information | 11.5% |
The pattern points to several concurrent pressures: input prices and supply, contract availability, payment delays, recruitment, and cash flow. It is not simply a story of costs rising despite a surge in demand; most respondents reported stable contract numbers, and the survey does not provide contract values or profitability.
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Did material-price pressure ease from Q2?
The Q2 NSO survey said 70.3% of construction firms cited high material prices as a difficulty, compared with 65.0% in Q3. It also found 61.5% reported higher direct material costs in Q2 than in Q1, while 56.7% did so in Q3 than in Q2. The NSO’s Q2 2026 survey and Q3 results show that fewer firms named high prices as a challenge and fewer reported an increase in their own material costs.
Those changes do not prove that market prices fell. One measure asks whether firms identified high prices as a difficulty; the other asks whether their direct material costs increased over a particular quarter-to-quarter comparison. Neither reports the size of price changes or a market-price index. The percentages describe how many enterprises reported an issue, not its magnitude.
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What the survey can—and cannot—confirm
- It can show reported business sentiment: more firms said Q3 conditions improved than said they worsened, while the largest group reported stability.
- It can show how common reported pressures were: high material prices, contract shortages, and rising input costs were cited by substantial shares of respondents.
- It cannot establish a recovery in profits, margins, construction output, or project value: those are not measured by the enterprise assessments summarized here.
- It cannot confirm the Q4 outlook: Q4 figures are expectations recorded in the survey, not observed outcomes.
The NSO’s separate Q3 and nine-month socioeconomic report provides broader national context, but economy-wide figures should not be substituted for construction firms’ survey responses.
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