The Department for Road of Vietnam has reported that prices for fuel and materials used in road maintenance, particularly gasoline, diesel, and asphalt, remain at high levels. Some contractors have delayed construction, leading to slower progress and raising potential traffic safety risks.
According to the agency, 2026 road maintenance projects are in the final stages of contract signing for construction packages, with contractors already selected for 89 out of 119 packages. Most of these contracts are based on fixed unit pricing.
A preliminary review indicates that if fuel and material prices are updated to early April levels, total costs for road maintenance packages could rise by an estimated VND946 billion, equivalent to a 28.7 percent increase. As a result, some contractors have postponed work, significantly affecting project timelines, posing risks to traffic and construction safety, and hindering the disbursement of allocated 2026 funds.
To mitigate losses, the Department for Road of Vietnam has urged contractors working on ongoing packages to prioritize items less affected by fuel price fluctuations, such as traffic safety systems and drainage works.
For packages where contractors have won bids but delayed signing contracts, authorities will forfeit bid securities, negotiate with alternative contractors, or reopen bidding. For packages yet to be tendered, agencies are instructed to revise cost estimates, contract types, and adopt adjustable pricing mechanisms.
The Department for Road of Vietnam has also proposed that the Ministry of Construction report to the National Assembly and the Government on the impact of rising fuel prices on construction and maintenance sectors, in order to amend and supplement legal frameworks. This would provide a basis for converting lump-sum and fixed unit-price contracts into adjustable-price contracts.
