Market Trends of Vietnam Prefabricated Buildings Industry
Government Policies Boosting the Market
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) are expected to propel Vietnam's exports of prefabricated buildings.
The prefabricated buildings feature highly on Vietnam's export list of lighting and furniture. Such buildings are gaining popularity in the commercial sector and residential living spaces. The government wants the building materials sector to achieve a higher level of automation by 2030.
The Ministry of Construction proposed a VND 30 trillion (USD 1.3 billion) credit package to build low-cost homes for workers. The package will help ensure social welfare for vulnerable people, enhance economic recovery and development, remove the difficulties plaguing enterprises, and support the development of housing and the real estate market.
Increasing Urbanization in Vietnam
The rapid urbanization, growing population, and booming economy of Vietnam are putting strain on the country's natural resources. Vietnam's immense coastline makes it susceptible to climate change and rising sea levels.
Vietnam's government has learned about the effects and knows how important it is to make its cities smarter and more environmentally friendly.
From planning to construction to the user stage, buildings utilize vast resources. In Vietnam, buildings consume half of their raw materials, 30-40% of their energy production, a quarter of their wood harvest, and 17% of their freshwater. The government's decision to build green cities is crucial to easing up human activities that cause harm to the environment.
The 'going green' trend benefits the environment and is a great investment for businesses. According to a Green Infrastructure Investment Opportunities report, green buildings exhibit huge investment potential, adding approximately USD 100 trillion globally between 2019 and 2030.
