Vietnam Infrastructure Sector Market Size (2024 - 2029)

Vietnam Infrastructure Market Analysis

The Vietnam Infrastructure Sector Market size is estimated at USD 18.33 billion in 2024, and is expected to reach USD 26.11 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).

Vietnam presently invests 6% of its GDP on infrastructure, whereas the rest of the region spends an average of 2.3 percent, making Vietnam the ASEAN leader in infrastructure investment. However, analysts believe that there is a disconnect between Vietnam's present infrastructure and its ambitions to be a fast-growing economy. Vietnam Briefing discusses significant infrastructure, present prospects, and government efforts in Vietnam. As per the Global Infrastructure Hub, Vietnam needs on average USD 25-30 billion annually for infrastructure if the country wants to ensure economic growth. However, the national budget can only allow for USD 15-18 billion (at 7 percent of GDP). Therefore, the country has to source the remaining USD 10-15 billion from private investors.

• Government plans to develop further infrastructure, with power and toll roads likely to be the main areas for expansion and quality improvements. Other infrastructure, including ports and railways, will also be developed. It is backed by the government's emphasis on developing the country's rail, road, and energy infrastructure, as well as funding for the building of affordable housing. The government's plan to build 1.4 million units of social housing in Hanoi, Ho Chi Minh City, Da Nang, Can Tho, and Hai Phong Cities by 2030 would also promote forecast-period development in the business. In addition, four state-owned banks put aside VND120 trillion (USD 5 billion) in loans in February 2023 to promote the construction of social housing and worker housing projects.
• Infrastructure has been a central factor in Vietnam's fast-paced economic development. However, economic growth is putting increasing pressure on Vietnam's infrastructure. Freight volumes are expanding rapidly. Road traffic has increased by an astounding 11% annually and the demand for energy is expected to grow by about 10% per year until 2030.

Vietnam Infrastructure Industry Segmentation

Infrastructure is the backbone of domestic and international commerce and industrial and agricultural production. It is the fundamental organizational and physical framework necessary to operate a firm successfully. The infrastructure sector focuses on major infrastructure such as power, roads and bridges, dams, and urban infrastructure.

The market is segmented by the Infrastructure segment (Social Infrastructure, Transportation Infrastructure, Extraction Infrastructure, Manufacturing Infrastructure). The report offers market size and forecast for all the above segments in value (USD).