Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 74.88 Billion |
| Market Size (2030) | USD 107.53 Billion |
| Growth Rate (2025 - 2030) | 7.51% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Vietnam Construction Market Analysis by Mordor Intelligence
The Vietnam Construction Market size stands at USD 74.88 billion in 2025 and is projected to reach USD 107.53 billion by 2030, advancing at a 7.51% CAGR. Robust public outlays, expanding foreign direct investment, and rising housing demand combine to keep the Vietnam construction market on an upward trajectory. Mega rail and expressway programs, together with an accelerating pipeline of renewable-energy plants, funnel steady work to domestic and international contractors. Digital permitting, wider use of Building Information Modeling, and early adoption of prefabrication are raising execution speed while countering skilled-labor shortages.
Key Report Takeaways
- By sector, residential captured 38.97% of the Vietnam construction market share in 2024, while infrastructure is set to expand at an 8.75% CAGR through 2030.
- By construction type, new builds accounted for 67.76% of the Vietnam construction market size in 2024; renovation is advancing at a 7.70% CAGR to 2030.
- By construction method, conventional on-site techniques held 94.55% revenue share in 2024, yet modern methods are projected to climb at a 9.87% CAGR through 2030.
- By investment source, public funding led with a 62.34% share in 2024, whereas private capital records the highest forecast CAGR at 8.89% to 2030.
- By geography, Ho Chi Minh City commanded 35.67% of the 2024 value; the Rest-of-Vietnam region posts the fastest 6.75% CAGR through 2030.
Vietnam Construction Market Trends and Insights
Driver Impact Analysis
| Driver | (%) Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Government infrastructure & PPP pipeline | +2.1% | National; North-South expressways | Long term (≥ 4 years) |
| Rapid urbanization & housing demand | +1.8% | Ho Chi Minh City, Hanoi, Da Nang | Medium term (2-4 years) |
| Rising FDI-led industrial construction | +1.4% | Southern industrial zones | Medium term (2-4 years) |
| Expansion of renewable-energy projects | +1.2% | Coastal provinces, Mekong Delta | Long term (≥ 4 years) |
| Digital e-permitting accelerates approvals | +0.6% | Major cities nationwide | Short term (≤ 2 years) |
| Modular construction uptake | +0.4% | Urban and industrial projects | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Government Infrastructure & PPP Pipeline
Budgeted infrastructure outlays rise to USD 36 billion in 2025 and channel into expressways, airports, and a USD 67 billion high-speed rail. A refreshed PPP law clarifies risk sharing and provides tariff guarantees, drawing overseas lenders. Projects such as Long Thanh International Airport and the Hanoi–Gia Binh highway signal scale and complexity that redefine the Vietnam construction market. Energy plans to double power capacity by 2030, add utility work worth USD 135 billion, and sustain civil-works demand[1]Le Minh Hoang, "North-South Expressway Master Plan 2025-2030," Ministry of Transport, mt.gov.vn.
Rapid Urbanization & Housing Demand
Urban migration pushes apartment prices higher, stretching affordability in tier-1 cities. Developers plan 180,000 new units for 2025, yet inflows continue to match supply. Middle-income buyers prefer mixed-use towers that bundle retail and leisure amenities, spurring high-rise activity. Government targets for 1 million social-housing units by 2030 anchor long-term demand. Vertical designs gain favor as scarce inner-city land raises per-square-meter costs while modern construction systems promise faster delivery[2] Tran Thi Lan, "Urban Population Survey 2024," General Statistics Office, gso.gov.vn .
Rising FDI-Led Industrial Construction
FDI inflows of USD 15.2 billion in 2024 fueled factory orders in electronics, automotive, and textiles. Samsung’s semiconductor expansion showcases rising clean-room specifications that require precision builds. New industrial parks in Binh Duong and Dong Nai demand high-speed schedules and lean site logistics. Foreign owners insist on green certification, pushing contractors toward insulated panels, energy-efficient HVAC, and waste-heat recovery systems. Logistics hubs mushroom around ports to serve e-commerce, carving a distinct growth pocket inside the Vietnam construction market.
Expansion of Renewable-Energy Projects
More than 15 GW of solar and wind capacity is under planning for 2030. Envision Energy’s USD 420 million Soc Trang wind farm highlights foundation, cable, and offshore works that need specialized fleets. Vingroup’s USD 25 billion multi-province program spans utility-scale and rooftop arrays and relies on contractors versed in grid integration. Offshore wind in the central coasts introduces deeper monopile design and heavy-lift vessels, new to the Vietnam construction industry. Battery farms and pumped-hydro schemes widen the technology mix and lengthen the work list.
Restraint Impact Analysis
| Restraint | (%) Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Skilled-labor shortage & aging workforce | -1.3% | Nationwide technical trades | Medium term (2-4 years) |
| Construction-material price volatility | -0.9% | National; steel-intensive builds | Short term (≤ 2 years) |
| Fragmented land-acquisition processes | -0.8% | Urban cores | Long term (≥ 4 years) |
| High risk premium on project finance | -0.6% | PPP and megaprojects | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Skilled-Labor Shortage & Aging Workforce
Vacancy rates of 25% in welding, electrical, and heavy-equipment roles lengthen completion times. The mean age of experienced tradespeople now exceeds 45 years as youth shift to services, creating succession gaps. Technical colleges lag in BIM and renewable-install curricula, curbing technology diffusion. Inter-provincial labor rules hamper flexible deployment, forcing contractors to overstaff. Wage inflation of 12% a year compresses margins and raises bid prices in the Vietnam construction market.
Fragmented Land-Acquisition Processes
Urban projects tackle overlapping zoning maps, multi-agency approvals, and prolonged resettlement negotiations. Delays average 24 months for inner-city land clearance, locking capital and inflating interest payments. Disparate compensation benchmarks across districts prompt disputes that progress slowly through administrative tribunals. Developers often pivot to satellite towns, yet infrastructure gaps there raise total project outlays. Streamlining through Decree 175/2024 should unify procedures, but full implementation rests on local compliance[3]Vo Duc Thanh, “Land Compensation Framework 2025,” Ministry of Natural Resources & Environment, monre.gov.vn.
Segment Analysis
By Sector: Infrastructure Drives Future Growth
Infrastructure construction expanded fastest at an 8.75% CAGR, driven by road, rail, and power builds that realign economic corridors. Residential retained 38.97% of Vietnam's construction market share in 2024, reflecting persistent urban housing demand even as price caps tighten. Commercial work pivoted toward Grade-A offices and lifestyle malls that cater to rising consumer incomes. Industrial and logistics build escalated alongside FDI manufacturing clusters, underpinning export growth.
Expressway extensions account for more than 60% of total infrastructure value and unlock inland manufacturing hubs. The North-South high-speed rail, budgeted at USD 67 billion, will anchor sustained contractor backlogs well past 2030. Utility projects mesh LNG, solar, and wind investments to double generating capacity and draw specialist players. These undertakings redefine the Vietnam construction market as a platform for complex, multi-year programs that require strict cost and quality governance.
Note: Segment shares of all individual segments available upon report purchase
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By Construction Type: Renovation Gains Momentum
New structures retained a 67.76 % share in 2024, yet renovation output is catching up at a 7.70 % CAGR as the building stock ages. Factory retrofits integrate automation lines and compressed-air systems that improve throughput. Hospitals and schools upgrade HVAC and seismic safety to meet updated codes. This shift widens service offerings beyond ground-up builds and grows the Vietnam construction market size through recurring refurbishment cycles.
Owners prioritize energy efficiency, wiring upgrades, and smart-building controls to boost asset values. Heritage restorations in Hanoi and Ho Chi Minh City apply lime-based mortars and timber joinery that fetch premium rates. Government grants for public-facility retrofits support steady contract awards. Altogether, refurbishment broadens revenue resilience for contractors and diversifies the Vietnam construction market.
By Construction Method: Modern Methods Accelerate Adoption
Traditional practices still command a 94.55 % share in 2024, yet modern methods climb at a 9.87 % CAGR due to labor and schedule pressures. Modular rooms arrive on site with pre-installed plumbing and wiring, trimming fit-out times. Precast façades reduce scaffold days and improve safety statistics. BIM-supported clash detection cuts rework by 15 % on pilot public projects.
Policy incentives in Decree 175/2024 require digital records for state-funded jobs, nudging adoption. Local prefab plants scale production of hollow-core slabs, narrowing import reliance. These shifts improve productivity and sustain profitability in the Vietnam construction market.
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By Investment Source: Private Sector Momentum Builds
Public funds led with a 62.34 % share in 2024, yet private capital posts an 8.89 % CAGR as legal safeguards deepen. Foreign sponsors co-develop IPP power plants under take-or-pay contracts, lowering revenue risk. Domestic corporates monetize land banks through mixed-use schemes financed by bond issuances. Improved insolvency law clarifies collateral recovery, lowering spreads.
PPP toll roads now feature minimum-revenue guarantees that unlock pension-fund participation. Real estate trusts channel retail savings into commercial builds, expanding investor diversity. These streams enlarge Vietnam construction market and lessen reliance on the state budget.
Geography Analysis
Ho Chi Minh City contributed 35.67 % of 2024 spending and anchors the Vietnam construction market with ongoing metro, port, and Thu Thiem urban developments. High-rise housing and Grade-A office towers intensify demand for piling rigs and concrete pumps while pushing land prices higher.
Hanoi follows with strong government projects, embassy quarters, and Noi Bai Airport upgrades. Metro construction stimulates tunnel expertise, and heritage precinct rules spur premium refurbishment contracts. Diplomatic clusters add demand for high-security buildings.
Rest-of-Vietnam regions post the highest 6.75 % CAGR through 2030. Hai Phong deep-water port expansion, Da Nang tourism complexes, and Mekong Delta climate-resilient roads diversify activity patterns. Industrial zones in Bac Giang, Quang Ninh, and Long An spread the Vietnam construction market beyond the two main cities, creating a broad, multi-locational pipeline.
Competitive Landscape
Market concentration remains moderate as top domestic firms Coteccons, Hoa Binh, and Vinaconex contend with international EPC groups on megaprojects. Large players secure repeat public contracts thanks to balance-sheet strength and experience in bid security, yet mid-tier specialists thrive in niche segments like façade installation and MEP systems.
Digitally advanced contractors leverage BIM to cut RFI turnaround times and gain scoring advantages in government tenders. Renewable energy work attracts joint ventures that pair local networks with foreign technology. Price-led competition persists in low-complexity housing, but higher standards in infrastructure and industrial projects favor quality-oriented bidders, reshaping competitive boundaries in the Vietnam construction market.
Strategic moves illustrate this transition. Coteccons partnered with Autodesk to embed cloud-based collaboration on expressway lots. Hoa Binh invested in a modular-factory line to serve high-rise housing. Vinaconex formed a consortium with Korean firms for the Long Thanh Airport passenger terminal. These steps cement capability upgrades and raise entry barriers.
Vietnam Construction Industry Leaders
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Coteccons Construction JSC
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Hoa Binh Construction Group JSC
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Song Da Corp JSC
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Vinaconex JSC
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Fecon Corp JSC
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- March 2025: Vietnam’s National Assembly lifted infrastructure allocations to USD 36 billion, targeting 8% GDP growth via transport and energy builds.
- March 2025: Vingroup proposed solar, wind, and LNG ventures totaling 47,500 MW for inclusion in Power Development Plan VIII with investment up to USD 25 billion.
- January 2025: Mirova committed USD 10 million to ecoligo for commercial solar rollout, signaling fresh financing channels for distributed generation.
- January 2025: EnQuest bought Harbour Energy’s Vietnam assets for USD 84 million, opening marine-construction prospects at Chim Sao and Dua fields.
Vietnam Construction Market Report Scope
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 | Apartments/Condominiums |
| Villas/Landed Houses | |
| Commercial | Office |
| Retail | |
| Industrial and Logistics | |
| Others | |
| Infrastructure | Transportation Infrastructure (Roadways, Railways, Airways, others) |
| Energy & Utilities | |
| Others |
By Construction Type
| New Construction |
| Renovation |
By Construction Method
| Conventional On-Site |
| Modern Methods of Construction (Prefabricated, Modular, etc) |
By Investment Source
| Public |
| Private |
By Geography
| Ho Chi Minh City |
| Hanoi |
| Da Nang |
| Rest of Vietnam |
| By Sector | Residential | Apartments/Condominiums |
| Villas/Landed Houses | ||
| Commercial | Office | |
| Retail | ||
| Industrial and Logistics | ||
| Others | ||
| Infrastructure | Transportation Infrastructure (Roadways, Railways, Airways, others) | |
| Energy & Utilities | ||
| Others | ||
| By Construction Type | New Construction | |
| Renovation | ||
| By Construction Method | Conventional On-Site | |
| Modern Methods of Construction (Prefabricated, Modular, etc) | ||
| By Investment Source | Public | |
| Private | ||
| By Geography | Ho Chi Minh City | |
| Hanoi | ||
| Da Nang | ||
| Rest of Vietnam | ||
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Key Questions Answered in the Report
What is the current value of the Vietnam construction market?
The Vietnam construction market size is USD 74.88 billion in 2025.
How fast is the sector expected to grow through 2030?
It is forecast to expand to USD 107.53 billion by 2030, reflecting a 7.51% CAGR.
Which segment is growing quickest inside the sector?
Infrastructure construction leads growth with an 8.75% CAGR thanks to rail, road, and energy builds.
Which city contributes the largest share of national construction spending?
Ho Chi Minh City holds 35.67% of the 2024 value, driven by metro and urban-renewal projects.
How are modern construction methods gaining ground?
Prefabrication and BIM-enabled coordination grow at a 9.87% CAGR as developers pursue faster, safer delivery.
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