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Vietnam Construction Market - Segmented by (Commercial Constructions, Residential Constructions, Industrial Constructions, Infrastructure (Transportation Constructions)), and Energy and Utility Constructions - Growth, Trends, and Forecast (2019 - 2024)
Vietnam is emerging as the latest East Asian growth engine, which attracts the attention of global investors. It is going through a transformative period. The economic reforms undertaken by the government have transformed the country into one of the fastest growing economies in the world.
The construction sectors account for significant economic growth in Vietnam. The Vietnam Construction Industry (VCI) has been growing at an average of 8.5% annually in the past 10 years. And it is projected to continue the same growth rate due to the government's efforts to improve the quality of the country's overall infrastructure with investments in infrastructure construction, tourism infrastructure, and housing projects across the country. Additionally, government investment in public infrastructure and educational healthcare buildings as part of the 2016-2020 Development Plan will support this growth.
Industry's growth was supported by the implementation of the government's Seventh Five-year National Socio-Economic Development Plan (2011–2015). As part of this, the government developed various industrial, agricultural and infrastructural projects across the country during 2011–2015. The industry's output value - measured at constant 2017 US dollar exchange rates - increasing from USD 53.0 billion in 2017 to USD 57.5 billion in 2018.
The Vietnam construction market covers the growing construction projects in different sectors, like commercial construction, residential construction, industrial construction, infrastructure (transportation construction), and energy and utility construction. The construction market is further segmented with the type of construction projects additions, demolished & new constructions and new constructions.
|Infrastructure (Transportation) Construction|
|Energy and Utilities Construction|
|BY CONSTRUCTION TYPE|
|Demolition and New Construction|
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In Vietnam, the focus of its infrastructure reforms will mostly revolve around the transport and logistics sectors. According to industry experts, there is a growing demand during the forecasted period for more efficient transport networks that could reduce logistics costs. As of 2019, two of Vietnam’s largest road projects, the 235 km Nha Trang-Phan Thiet Expressway (worth USD 2.16 billion) and the 200 km Dau Giay-Lien Khuong Expressway (worth USD 3 billion) due for completion by 2020.
Additionally, Under the Vietnam's Railway Development Strategy 2020, the government aims to increase the share of passenger and freight transport through railways from 0.5% of the total passenger transport market share and 1.0% of the total freight transport in 2015 to 13.0% in terms of passenger transport and 14.0% in terms of freight transport by 2020. Accordingly, the Ministry of Transport (MOT) proposed a plan to develop the North, South railway infrastructure, including the construction of a dual-track broad-gauge line connecting Hanoi and Ho Chi Minh City, two express railway sections, and upgrades to the existing railway.
The government's focus on developing seaports with an aim to increase trade volume in the country is expected to drive growth in the infrastructure construction market over the forecast period. In 2015, the government announced Vietnam's new Master Plan for Seaport System Development 2020, to develop the country's port infrastructure. The government’s focus on developing seaports with an aim to increase trade volume in the country is expected to drive growth in the infrastructure construction market over the forecast period. In 2015, the government announced Vietnam’s new Master Plan for Seaport System Development 2020, to develop the country's port infrastructure.
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The residential construction market to retain its leading position over the forecast period, with a share of more than 30% of the industry's total value in 2024. The government's effort to bridge the gap between demand and supply for affordable housing in the country is expected to support the market's growth over the forecast period. According to estimates of the Ministry of Construction, over 1.0 million affordable housing units need to be constructed in the country by 2020, in order to accommodate the rising low-income population.
The government aims to increase Vietnam's housing area per capita from 16.7m2 per person in 2015 to 25.0m2 per person by 2020. Consequently, the government is planning to build 1.0 million affordable houses by 2020. Accordingly, it launched various social housing programs such as the Housing for Poor Rural Families Program, low-rent housing for industrial zone employees. and low-income urban social housing-local government.
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The Vietnam construction market is highly competitive, with the presence of major international players. The Vietnam construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the Vietnami construction market has observable level of consolidation.
1.1 Scope of the Market
1.2 Market Definition
1.3 Executive Summary
2. RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. MARKET INSIGHTS
3.1 Current Economic and Construction Market Scenario
3.2 Technological Innovations in the Construction Sector
3.3 Impact of Government Regulations and Initiatives on the Industry
3.4 Comparison of Key Industry Metrics of VIETNAM with Other ASEAN Member Countries (Analyst View)
3.5 Comparison of Construction Cost Metrics of VIETNAM with Other ASEAN Member Countries (Analyst View)
4. MARKET DYNAMICS
4.4 Porter's Five Forces Analysis
4.5 Industry Value Chain Analysis
5. MARKET SEGMENTATION
5.1 By SECTOR
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation) Construction
5.1.5 Energy and Utilities Construction
5.2 BY CONSTRUCTION TYPE
5.2.2 Demolition and New Construction
5.2.3 New Constructions
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Strategies Adopted by Major Players
7. COMPANY PROFILES
7.1 Vingroup JSC
7.2 Vinhomes JSC
7.3 Song Da Corporation - CTCP
7.4 Coteccons Construction JSC
7.7 JGC Corp.
7.8 Maeda Corp.
7.9 Larsen & Toubro Ltd.
7.10 Samsung C&T
7.11 Hoa Binh Construction Group JSC*
8. INVESTMENT ANALYSIS
9. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, CONTRACTORS)
9.1 Existing Infrastructure
9.2 On-going Projects
9.3 Upcoming Projects
10. FUTURE OF CONSTRUCTION SECTOR IN VIETNAM
** Subject to Availability