Vietnam Construction Market Size (2024 - 2029)

The market size of the Vietnam Construction sector is expected to see significant growth in the coming years, driven by the country's rapid economic development and increasing population. Despite the pandemic, the demand for high-end condos in urban areas remains strong, supporting the growth of the residential construction market. The government's economic reforms have transformed Vietnam into one of the world's fastest-growing economies, attracting international investors. The rise in urban population proportion is also expected to contribute to the growth of the construction market, with a high demand for housing units projected in big cities and industrial zones. The strong performance of industrial real estate during the pandemic has attracted new investors to the market, further supporting the expansion of the overall construction market.

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Market Size of Vietnam Construction Industry

Vietnam Construction Industry Summary
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

Vietnam Construction Market 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 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 Size Summary

The Vietnam construction market is witnessing significant growth, driven by factors such as the country's rapid economic development, increasing urban population, and high demand for new housing units. The robust growth of the residential construction market is a result of the consistent demand for high-end condos in cities, despite the global pandemic. The market is also getting a boost from the strong growth of industrial real estate, attracting new investors, both domestic and foreign. The government's economic reforms have transformed Vietnam into one of the world's fastest-growing economies, making it a favorable investment destination. The Vietnamese government's plans to develop infrastructure are driving the construction market further. There are several ongoing and planned construction projects, including expressways, national highway routes, coastal roads, and various building projects. The residential sector is also seeing increased investments, with the government promoting affordable housing through various initiatives. The demand for sustainable buildings is on the rise, with homeowners and businesses seeking ways to reduce energy consumption. The government has recognized the importance of sustainable construction and has implemented policies to promote it, leading to an increase in green buildings across the country. The construction market in Vietnam is highly competitive, with both domestic and international businesses vying for a piece of the pie.

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Vietnam Construction Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Urbanization and population growth

      2. 1.1.2 Government policies and Foreign Investnents

    2. 1.2 Market Restraints

      1. 1.2.1 Skilled Labor Shortage

      2. 1.2.2 Material Price Fluctuations

    3. 1.3 Market Opportunities

      1. 1.3.1 Technology Adoption

      2. 1.3.2 Public-Private Partnerships

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size By Value)

    1. 2.1 By Sector

      1. 2.1.1 Residential Construction

      2. 2.1.2 Commercial Construction

      3. 2.1.3 Industrial Construction

      4. 2.1.4 Infrastructure (Transportation) Construction

      5. 2.1.5 Energy and Utilities Construction

Vietnam Construction Market Size FAQs

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.

In 2024, the Vietnam Construction Market size is expected to reach USD 69.20 billion.

Construction Market in Vietnam Report Snapshots

Vietnam Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)