Vietnam Construction Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 69.20 Billion |
| Market Size (2028) | USD 102.20 Billion |
| CAGR (2024 - 2029) | 8.10 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Construction Market Analysis
The Vietnam Construction Market size is estimated at USD 69.20 billion in 2024, and is expected to reach USD 102.20 billion by 2028, growing at a CAGR of 8.10% during the forecast period (2024-2028).
- Vietnam has risen to prominence as the most recent East Asian growth engine, attracting the attention of international investors. It is in the midst of a transformation. The government's economic reforms transformed the country into one of the world's fastest-growing economies.
- Despite the epidemic, the Vietnamese economy continued to demonstrate significant growth patterns, making the country a favorable investment destination for foreigners. In the residential construction market, high-end condos in the city remained in demand despite the pandemic, and there were no signs of a fall in prices.
- The growth in the Vietnamese population is driving the demand for new housing units, thereby supporting the growth of the residential construction market in the Southeast Asian market.
- Notably, the population is projected to further increase over the next few years in Vietnam. Vietnam's population is equivalent to 1.23% of the total world population.
- According to the Ministry of Construction, the urban population proportion is at more than 40% currently and is projected to reach 45% by 2030. As a result of this growth in proportion, Vietnam will have to add another 70 million square meters of housing every year.
- Over the next three to four years, Vietnam is expected to experience a high demand growth for housing units in big cities and industrial zones. This growth in demand will keep assisting the growth of the residential construction segment, as well as the growth of the overall construction market, from the short to medium-term perspective.
- With the strong growth of industrial real estate during the pandemic, many new investors decided to enter the market, including domestic developers (Vinhomes, Thanh Cong Group) and foreign developers (JD.com, Fraser, ESR). In addition, investment funds have also participated via investment into potential projects such as Actis, which recently announced an investment into a local industrial park operator.
Vietnam Construction Market Trends
Government plans to develop Infrastructure driving the Construction Market
- Vietnam's government adopted the country's road development plan for 2021-2030 in September 2021. By 2030, the plan seeks to create nearly 5,000 kilometers of expressways, up from 3,841 kilometers in 2021. By 2030, Vietnam plans to construct 172 national highway routes with a total length of 29,795 kilometers, up from 5,474 kilometers in 2021. It also intends to construct 3,034 kilometers of coastal roads that will connect 28 cities and provinces. The top building projects in Vietnam that were started in the third quarter of 2022.
- Lotte Eco Smart City (USD900m) - On a 7.45ha plot of ground in Ho Chi Minh City, a mixed-use complex will be built as part of the project. Beginning in Q3 2022, construction is scheduled to be finished in Q1 2029. The project is a part of the government's 2002 development strategy for the Thu Thiem district.
- Ju Teng Electronic Components and Auto Parts Manufacturing Plant (USD200m) - On 120 ha of land in Nghe An, the proposal calls for the building of an auto parts and electronic component manufacturing facility. Beginning in Q3 2022, construction was anticipated to be completed in Q2 2023. The project seeks to supply the region's rising demand for electronic components.
- Deep C 2 Hai Phong Industrial Zone Core5 Hai Phong (USD60m) - In Hai Phong, a 96,000m2 ready-built warehouse is being constructed as part of the project. The construction project began in Q3 2022 and was anticipated to be finished in Q2 2023. The project seeks to give the area cutting-edge logistics facilities.
Investments in Residential Sector
- With rapid urbanization and increasing disposable income, the demand for housing units has soared. The government is also playing a crucial role in promoting affordable housing through various initiatives. This has led to a surge in construction activities across both urban and rural areas.
- In Q4 2022, the successful transaction volume for condominiums and individual houses was 14,349 transactions (approximately 28% higher than Q3/2022), including 3,821 transactions in the North, 5,968 transactions in the Central region, and 4,560 transactions in the South. Specifically, there were 454 successful transactions in Hanoi and 1,986 successful transactions in Ho Chi Minh City. In Q4 2022, the successful transaction volume for land plots was 149,197 transactions (approximately 130% higher than Q3/2022), including 29,402 transactions in the North, 32,579 transactions in the Central region, and 87,216 successful transactions in the South.
- With rising energy costs, homeowners and businesses are looking for ways to reduce their energy consumption. Sustainable buildings, with features like proper insulation, energy-efficient appliances, and smart systems, can significantly lower energy usage and save on utility bills.
- The government of Vietnam has also recognized the importance of sustainable construction and has implemented policies to promote it. For example, the Ministry of Construction has issued guidelines for green building certification, encouraging developers to adopt sustainable practices. This has led to an increase in green buildings across the country. According to the Ministry of Construction (MoC), Vietnam’s housing demand will surge by 70 million square meters each year, equivalent to 17,500 buildings of 30 floors by 2030.
- According to industry sources, the number of green building projects under construction is 381 and is projected to increase to 582 by 2030.
Vietnam Construction Industry Overview
The construction market in Vietnam is fiercely competitive, with big domestic and international businesses. Song Da Corp JSC, Truong Xuan Investment And Construction JSC, COFICO, Hoa Binh Construction Group JSC, and Coteccons Construction JSC are just a few of the key competitors in the sector.
The building business in Vietnam has grown significantly in recent decades. Furthermore, Vietnam's construction capability has advanced significantly, allowing it to handle the building needs of large-scale projects.
In Vietnam, the construction sector is characterized by a considerable quantity of initial investment capital and a reliance on bank financing. Low disbursement rates and project postponement using public investment funding are two factors that have had a substantial impact on construction enterprises' financial status.
To deal with the challenges, many enterprises in the industry have implemented various development strategies, such as maintaining core industries (construction, installation, or building of underground works) while diversifying into real estate, hydropower, and renewable energy.
Vietnam Construction Market Leaders
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Song Da Corp JSC
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COFICO
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Hoa Binh Construction Group JSC
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Coteccons Construction JSC
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Visicons Construction and Investment JSC
*Disclaimer: Major Players sorted in no particular order
Vietnam Construction Market News
- November 2023: COFICO and joint venture partners TVC and Searefico opportunistically attended the Taking Over Singing Ceremony of The New Betalactam Factory that Meets Global GMP Standards for the Investor – DHG Pharmaceutical Joint Stock Company. The project is located at Tan Phu Thanh Industrial Park – Phase 1, Chau Thanh A district, Hau Giang province, with a total project area of about 6 hectares. It is expected that after completion and operation in 2024, the Betalactam factory will meet global GMP standards, requiring high technical specifications in the stages of design, construction, and finishing. This project holds particular significance for the plan to develop high-quality product lines and deliver numerous qualified product lines to replace imported drugs for consumers of DHG Pharma.
- October 2023: Song Da Corp JSC invested in the implementation of the 500kV circuit 3 line projects (from Quang Trach, Quang Binh, to Pho Noi, Hung Yen) at the Government Headquarters. Deputy Prime Minister Tran Hong Ha requested the Ministry of Industry and Trade to strictly adhere to the specific planning and critical paths (charts) of the project's implementation progress, in accordance with the Prime Minister's direction. According to a report by Vietnam Electricity Group (EVN), the 500 kV line circuit 3 (from Quang Trach, Quang Binh, to Pho Noi, Hung Yen) includes four component projects: Quang Trach - Quynh Luu, Quynh Luu - Thanh Hoa, Nam Dinh 1 - Thanh Hoa, and Nam Dinh 1 - Pho Noi.
Vietnam Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Economic and Construction Market Scenario in Vietnam
4.2 Market Overview of Construction Materials in Vietnam
4.3 Technological Innovations in the Construction Sector
4.4 Impact of Government Regulations and Initiatives on the Industry
4.5 Comparison of Key Industry Metrics of Vietnam with Other ASEAN Member Countries (Analyst's View)
4.6 Insights into Industry Value Chain Analysis
4.7 Comparison of Construction Cost Metrics of Vietnam with Other ASEAN Member Countries (Analyst's View)
4.8 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Urbanization and population growth
5.1.2 Government policies and Foreign Investnents
5.2 Market Restraints
5.2.1 Skilled Labor Shortage
5.2.2 Material Price Fluctuations
5.3 Market Opportunities
5.3.1 Technology Adoption
5.3.2 Public-Private Partnerships
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION (Market Size By Value)
6.1 By Sector
6.1.1 Residential Construction
6.1.2 Commercial Construction
6.1.3 Industrial Construction
6.1.4 Infrastructure (Transportation) Construction
6.1.5 Energy and Utilities Construction
7. COMPETITIVE LANDSCAPE
7.1 Market Overview
7.2 Company Profiles
7.2.1 Song Da Corp JSC
7.2.2 COFICO
7.2.3 Hoa Binh Construction Group JSC
7.2.4 Coteccons Construction JSC
7.2.5 Visicons Construction and Investment JSC
7.2.6 Fecon Corp JSC
7.2.7 Ricons Construction Investment Group JSC
7.2.8 Delta Corp
7.2.9 Vincons Vietnam Construction JSC
7.2.10 ECOBA Vietnam JSC
7.2.11 Newtecons Vietnam
7.2.12 Hung Thinh Incons JSC
7.2.13 Choyoda Corp
7.2.14 CTCI Corp
7.2.15 Danieli & C. Officine Meccaniche SpA
7.2.16 GS Engineering and Construction
7.2.17 Hyundai Engineering & Construction Co. Ltd
7.2.18 An Phong
7.2.19 Takco
7.2.20 Central Cons*
- *List Not Exhaustive
8. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, AND CONTRACTORS)
8.1 Existing Infrastructure
8.2 On-going Projects
8.3 Upcoming Projects
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
11. APPENDIX
Vietnam Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish.
The Vietnam construction market is segmented by sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction).
The report offers market size and forecasts for the Vietnam construction market in value (USD) for all the above segments.
| By Sector | |
| Residential Construction | |
| Commercial Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utilities Construction |
Vietnam Construction Market Research FAQs
How big is the Vietnam Construction Market?
The Vietnam Construction Market size is expected to reach USD 69.20 billion in 2024 and grow at a CAGR of 8.10% to reach USD 102.20 billion by 2028.
What is the current Vietnam Construction Market size?
In 2024, the Vietnam Construction Market size is expected to reach USD 69.20 billion.
Who are the key players in Vietnam Construction Market?
Song Da Corp JSC, COFICO, Hoa Binh Construction Group JSC, Coteccons Construction JSC and Visicons Construction and Investment JSC are the major companies operating in the Vietnam Construction Market.
What years does this Vietnam Construction Market cover, and what was the market size in 2023?
In 2023, the Vietnam Construction Market size was estimated at USD 63.59 billion. The report covers the Vietnam Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the trends in the Vietnam Construction Market?
The trends in the Vietnam Construction Market are a) Increasing focus on sustainable construction practices, with features like energy efficiency b) Investment in residential projects, particularly condominiums and individual houses in urban areas
Construction in Vietnam Industry Report
The Vietnam construction market is experiencing significant growth across multiple sectors, including residential, commercial, industrial, infrastructure, energy and utilities, and institutional construction. This market trend is driven by government initiatives aimed at improving transportation infrastructure, renewable energy, and affordable housing, alongside enhancements in tourism. The residential sector, bolstered by substantial investments in affordable housing, and the commercial sector, supported by tourism recovery and investments in leisure and retail, are key contributors to this growth.
Additionally, the industrial sector is thriving due to investments in manufacturing and industrial parks, while infrastructure projects are being enhanced through road, rail, and public transport developments. The energy and utilities sector is expanding as a result of strategic government development plans. Institutional construction is also on the rise, driven by investments in education and healthcare.
Supported by government initiatives, foreign investments, and a commitment to sustainable practices, the Vietnam construction market is poised for robust growth. For detailed market share, size, revenue growth rate, and a forecast outlook, industry reports offer comprehensive analysis and insights.
The market analysis reveals that the industry outlook is positive, with significant market growth expected. Industry trends indicate that market segmentation will play a crucial role in understanding the market value and market data. The market forecast suggests continued expansion, driven by market predictions and market review. The industry analysis and industry information highlight the importance of industry research and industry statistics in shaping the future of the market.
Report examples and report pdfs provide valuable insights into the industry's progress. Research companies are actively engaged in providing market leaders with the necessary data to make informed decisions. The market overview and market outlook emphasize the need for continuous monitoring of market trends and industry developments. The industry's growth rate and industry size are key indicators of its overall health and potential for future success.
In summary, the Vietnam construction market is on an upward trajectory, supported by a combination of government initiatives, foreign investments, and sustainable practices. The market's growth is underpinned by detailed industry reports, market analysis, and comprehensive market data, ensuring that stakeholders have the information they need to navigate this dynamic market successfully.
