Vietnam Structural Steel Fabrication Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Vietnam Structural Steel Fabrication Market Analysis

The Vietnam Structural Steel Fabrication Market size is estimated at USD 3.05 billion in 2025, and is expected to reach USD 4.53 billion by 2030, at a CAGR of 8.21% during the forecast period (2025-2030).

Vietnam's structural steel fabrication industry is experiencing significant transformation driven by rapid urbanization and infrastructure modernization initiatives. The country's steel structure industry has demonstrated remarkable resilience, with finished steel consumption reaching approximately 12.5 million tons in 2022, despite a 17% year-on-year decline. The export market has shown particular strength, with finished steel exports growing 6.5% in the first half of 2022 to reach 3.881 million tons. This robust export performance, coupled with increasing domestic demand, has positioned steel Vietnam as an emerging steel production hub in Southeast Asia. The government's emphasis on developing modern infrastructure has created sustained demand for structural steel across various construction projects.

The adoption of pre-engineered building (PEB) steel solutions has emerged as a transformative trend in Vietnam's construction landscape. Pre-engineered steel buildings offer significant advantages over conventional construction methods, including 30% lower costs per square meter and 10-20% lighter structural weight. The industry has witnessed a notable shift toward using pre-engineered steel for civil works, with construction timelines being reduced significantly—PEB projects typically requiring only 6-8 weeks for construction compared to 20-26 weeks for conventional buildings. This efficiency gain has made PEB solutions increasingly attractive for both industrial and commercial applications.

The manufacturing sector's expansion has become a crucial driver for steel fabrication demand, with Vietnam positioning itself as an alternative manufacturing base to China. The sector's contribution to GDP has steadily increased, reaching 16.69% in recent years, creating substantial demand for new industrial facilities and infrastructure. The country has experienced an influx of foreign direct investment in manufacturing, particularly in industrial parks and special economic zones, leading to increased requirements for structural steel fabrication in factory construction and expansion projects.

The energy sector's transformation has created new opportunities for steel fabrication, particularly in power infrastructure development. Vietnam's ambitious plans for renewable energy infrastructure have generated significant demand for structural steel components. The power sector's expansion plans include increasing gas-fired power plant capacity from 9 GW to 19 GW by 2029, necessitating substantial steel infrastructure development. Additionally, the construction sector's steel demand is projected to rise by more than 10% over the next few years, driven by both public infrastructure projects and private sector development initiatives.

Vietnam Structural Steel Fabrication Market Trends

Infrastructure Development and Government Support

The Vietnamese government's aggressive infrastructure development initiatives have emerged as a primary catalyst for the steel fabrication market. The government's ambitious plan to invest USD 43-65 billion in comprehensive infrastructure development between 2021-2030 demonstrates its commitment to modernizing transportation networks, including roads, railways, inland waterways, seaports, and airports. This substantial investment, representing 5.7% of GDP—the highest in Southeast Asia and second only to China's 6.8% in Asia—creates extensive opportunities for structural steel fabrication across various infrastructure projects.

The implementation of the new Public Private Partnership (PPP) Law, effective March 2021, has created a robust framework for private sector participation in infrastructure development. This legislative support has been particularly impactful in attracting private investment for transportation infrastructure, power grid expansion, and power plant construction projects. The law's emphasis on reducing the national debt burden while maintaining infrastructure development momentum has created a sustainable model for long-term growth in the steel structure industry, particularly in large-scale infrastructure projects requiring significant steel fabrication capabilities.

Industrial Expansion and Foreign Direct Investment

The surge in foreign direct investment has become a significant driver for Vietnam's structural steel fabrication market, with the manufacturing sector alone attracting over USD 16.8 billion, representing 60.6% of the country's total foreign investment. This substantial industrial expansion has created unprecedented demand for steel structures, particularly in the construction of new manufacturing facilities, warehouses, and industrial complexes. The establishment of 2,036 newly registered foreign direct investment projects demonstrates the robust industrial growth trajectory, creating sustained demand for structural steelwork fabrication services.

The strategic relocation of multinational companies from China to Vietnam, driven by supply chain diversification efforts, has further accelerated industrial development. This shift has particularly benefited the structural steel sector, as new manufacturing facilities require extensive steel structures for their operations. The continued investment from countries like South Korea, which has committed more than USD 80 billion to FDI projects, indicates a long-term industrial growth trajectory that will sustain demand for structural steel fabrication services across various industrial applications.

Urbanization and Infrastructure Modernization

Rapid urbanization in Vietnam, with approximately 50% of the population now residing in major cities, has created significant pressure on existing infrastructure and building capacity. This demographic shift has necessitated extensive urban development projects, including commercial buildings, residential complexes, and supporting infrastructure, all requiring substantial quantities of fabricated structural steel. The increasing urban population has already exceeded the capacity of existing connectivity networks and utility systems, driving the need for rapid infrastructure expansion and modernization.

The modernization of Vietnam's steel production capabilities has enhanced the sector's ability to meet growing urban development demands. The country's adoption of advanced production methods, with blast furnace technology accounting for 70% of production capacity, has positioned it as a leading regional steel producer. This technological advancement, combined with Vietnam's position as the top producer in the region contributing 29% of total crude steel production, has created a robust foundation for meeting the increasing structural steel demands of urban development projects.

Segment Analysis: By End-Use Industry

Construction Segment in Vietnam Structural Steel Fabrication Market

The construction segment dominates the Vietnam structural steel fabrication market, commanding approximately 71% of the total market share in 2024. This significant market position is primarily driven by Vietnam's rapid urbanization and infrastructure development initiatives. The country's construction sector has maintained its position as the best-performing one in the Asia-Pacific region, with substantial investments in residential, commercial, and infrastructure projects. The emergence of Vietnam as an alternative manufacturing base to China has accelerated foreign investments in construction projects, particularly in industrial infrastructure. The government's focus on developing affordable housing and the implementation of public-private partnerships (PPP) has further strengthened the segment's dominance. Additionally, Vietnam's construction spending growth and the fact that construction steel accounts for more than 93% of steel demand in the country have solidified this segment's market leadership.

Manufacturing Segment in Vietnam Structural Steel Fabrication Market

The manufacturing segment is projected to exhibit the highest growth rate of approximately 10% during the forecast period 2024-2029. This accelerated growth is attributed to Vietnam's increasing prominence as a major manufacturing hub in Southeast Asia. The country has been experiencing a significant influx of manufacturing facilities, particularly as global companies diversify their supply chains. The expansion of automotive, electronics, and other manufacturing sectors has created substantial demand for steel fabrication. The Vietnamese government's supportive policies for industrial development and the establishment of new industrial zones have further catalyzed this growth. The trend of using pre-engineered steel buildings for manufacturing facilities has gained significant traction, contributing to the segment's robust growth trajectory. The sector's growth is also bolstered by Vietnam's strategic position in global supply chains and its competitive advantages in terms of labor costs and improving infrastructure. Leading Vietnam steel fabrication companies are capitalizing on these trends to enhance their market presence.

Remaining Segments in Vietnam Structural Steel Fabrication Market

The power and energy, oil and gas, and other end-user industries collectively form significant segments in the Vietnam steel fabrication industry. The power and energy sector is driven by the country's ambitious renewable energy projects and expansion of power infrastructure, including wind farms and solar installations. The oil and gas segment, while smaller, maintains steady demand through ongoing infrastructure development for storage facilities and processing plants. Other industries, including mining and general infrastructure, contribute to the market through diverse applications of structural steel in specialized facilities and support structures. These segments benefit from Vietnam's overall industrial growth and the increasing adoption of pre-engineered building solutions across various sectors. The role of a steel structure manufacturer in Vietnam is crucial in meeting the diverse demands of these industries.