Vietnam Home Improvement Market - Growth, Trends, COVID Size & Share Analysis - Growth, Trends & Forecasts (2025 - 2030)

Vietnam Home Improvement Market Trends and Insights

Rapid Urbanization and Rising Middle-Class Income

Vietnam’s population reached 101 million in 2025, and more than two-thirds will reside in cities by 2035, a shift that continues to enlarge the addressable Vietnam home improvement market ^{[1]Source: Ministry of Construction, “Market update on sand and cement supply,” moc.gov.vn.} . Disposable personal income per capita topped USD 3,200 in 2024 and is growing near 7% annually, lifting discretionary spend on décor, smart appliances, and energy-efficient refits. Ho Chi Minh City permits for high-rise residences climbed 10% in 2024, driving bulk orders for cement, stee,l and finishing materials.

Government Housing-Renewal Incentives

Eliminating unsafe dwellings remains a national priority; by May 2025, 203,048 homes had already been upgraded, backed by VND 3,142.8 billion in pooled funds. Resolution 201/2025/QH15 created a National Housing Fund and cut bid requirements, shaving close to a year off project approvals. The broader plan for 1 million social-housing units by 2030 ensures sustained demand in the Vietnam home improvement market for basic building inputs and installation services. Priority beneficiaries war veterans and low-income families—receive subsidies that also influence private consumer design choices. Implementation momentum is clear: Da Nang alone has started 929 of its planned 2,002 new homes for completion by 2025.

E-commerce Penetration in Home-Improvement Retail

Quarterly e‑commerce turnover in Vietnam surged to VND 116.6 trillion in Q2 2025, placing home‑related products firmly within the market’s top five categories. This boom is fueled by platforms like Shopee, which regularly promote power tools and modular shelving during major sales events such as 11.11. These flash deals offer lower prices than traditional stores, especially for small‑ticket DIY items, shifting consumer preference toward online channels. Additional boosts come from user-friendly mobile apps, plentiful vouchers, free shipping, and competitive flash‑sale formats. Together, these factors are reshaping Vietnam’s home‑improvement retail landscape making online the go‑to for affordable and convenient home upgrades.

DIY Micro-Projects for Multifunctional Living

High-density “tube” houses, over 70% of Vietnam’s housing stock, require creative storage, daylight, and ventilation fixes, encouraging owners to tackle incremental alterations themselves. Surveys across Southeast Asia show 60% of consumers choose DIY for cost savings and personal satisfaction, a trend now visible in Vietnam’s major cities. Developers answer with flexible layouts and Japandi-inspired wellness designs, such as Essensia Parkway, which dedicates 60% of the site area to greenery. Technology lowers barriers: YouTube tutorials, smart-home starter kits, and modular furniture lines arrive online within two-day delivery windows. 

Fragmented Supply-Chain Quality Issues

Sand, stone, and clinker shortages pushed selected material prices up 30% in Thanh Hóa and nearby provinces during late 2024 ^{[2]Source: Ministry of Construction, “Market update on sand and cement supply,” moc.gov.vn.} . Contractors switched to distant quarries, inflating freight outlays and causing project downtime. The Ministry released Directive 85/CĐ-TTg in June 2025 that caps intermediary margins and obliges provinces to publish weekly stock levels, but enforcement gaps persist. Homeowners report inconsistent paint viscosity and warped flooring planks purchased through informal dealers, prompting extra repair costs and denting confidence within the Vietnam home improvement market.

Shortage of Certified Installers in Tier-2/3 Cities

Only 26% of construction-sector workers hold professional certificates, and the deficit widens outside the two largest metros ^{[3]Source: Ministry of Labour, “Vocational-skills roadmap for construction trades,” molisa.gov.vn.} . Businesses report retraining nearly half their recruits to master safe wiring practices or precision tile-cutting, delaying project delivery. The government targets 30% certified labour by 2025 and 40% by 2030, yet vocational colleges graduate far fewer HVAC technicians than the market demand each year.

Segment Analysis

By Product Type: Building Materials Anchor Spending

Building Materials commanded 41.56% of 2024 revenue, reflecting the pivotal role of cement, steel, and aggregates in Vietnam’s social-housing drive. The Vietnam home improvement market size for Building Materials is projected to advance in lock-step with the 1-million-unit public-housing program, sustaining double-digit demand for structural inputs through 2030. Kitchen upgrades account for a further slice, with rising appliance penetration and modular cabinetry options evidenced by TOTO Vietnam’s USD 100 million faucet plant capable of 600,000 units yearly.  

Outdoor & Garden products form the fastest-growing niche, expanding at a 7.21% CAGR as residents convert balconies into mini-gardens or rooftop lounges to counter space scarcity. Painting & Wallpaper benefit from color personalization in DIY projects, while Lighting & Electrical progress on smart-home retrofits. Tools & Hardware volumes track both DIY activity and contractor replenishment, underpinned by Saint-Gobain’s LNG-fuel switch that will cut embodied-carbon factors in gypsum and cement boards by 2026.

Note: Segment shares of all individual segments are available upon report purchase

By Distribution Channel: Clicks Gain on Bricks

Home-improvement stores still hold 48.79% of turnover thanks to large in-store assortments and rapid buyer guidance; Hoa Sen’s chain now counts 122 outlets, confirming the model’s scale advantage. Nevertheless, the Vietnam home improvement market is tilting online, with Online Retail’s 5.77% CAGR reflecting Shopee’s unrivalled reach and TikTok Shop’s influencer-led impulse sales.  

Specialty outlets keep niche footprints. Imported parquet flooring and low-emissivity glass command hands-on curation. Meanwhile, supermarkets and hypermarkets handle smaller jobs, selling caulk tubes, screw assortments and extension cords near cash registers. Logistics advances reinforce online traction. Fulfillment providers now stage-oversized items like bathtubs at regional hubs, offering two-person delivery and basic setup, a service that encourages big-ticket e-carts across Tier-3 towns that lack full-service stores.

By End User: DIFM Dominates, DIY Gains Momentum

DIFM accounted for 58.80% of outlays in 2024 as structural additions, electrical rewires, and plumbing upgrades typically require licensed teams. Certified firms also win social-housing contracts, reinforcing their scale in the Vietnam home improvement market share. However, labor bottlenecks outside major cities and rising service charges push some owners toward simpler self-install options.  

DIY spending, although smaller, is growing 6.24% annually. T The Vietnam home improvement industry also benefits from return visits: owners who complete a photo-led shelf install often return for heavier projects such as closet systems. Online forums crowd-test new sealants and smart-lighting apps, creating social proof that further normalizes do-it-yourself culture.

By Project Type: Renovation Remains Core Activity

Renovations took 43.36% of 2024 value, driven by an ageing housing inventory, 31% of urban stock predates 2000, and the state’s goal of removing substandard dwellings. The Vietnam home improvement market size for renovation projects will keep expanding as directives mandate safety retrofits and energy-efficient upgrades.  

Remodeling posts a healthier 5.31% CAGR, supported by premiumization and “well-living” concepts that combine natural materials with smart controls. Publications such as “Trend 26+” steer architects toward contemporary Vietnamese aesthetics, encouraging homeowners to repurpose interiors rather than rebuild entirely. Maintenance & Repair stays resilient, underpinned by typhoon-related roof and façade fixes, and reinforced by stricter product-quality regulations.

Geography Analysis

Southern Vietnam generated 45.55% of revenue in 2024, buoyed by Ho Chi Minh City’s robust commercial pipeline and continued FDI inflows; Bà Rịa-Vũng Tàu alone secured more than USD 4 billion in new commitments during the first five months of 2025. The region’s integrated logistics network ensures timely material delivery, insulating many projects from inland bottlenecks. Rising ultra-high-net-worth households—those holding real-estate assets above USD 30 million are projected to hit nearly 1,000 by 2028, sustaining premium product demand.  

Central Vietnam, though smaller, tops the growth charts with a 6.02% CAGR. The USD 2.39 billion green-hydrogen complex in Quang Tri and Sumitomo’s new industrial park in Thanh Hóa anchor job creation that feeds home-upgrade spending. Persistent sand shortages and 30% material price jumps place near-term strain on contractors, yet Directive 85/CĐ-TTg aims to normalize supply over the next 18 months. Tourism-oriented coastal cities also push outdoor-living makeovers as second-home buyers seek “resort-style” landscaping.  

Northern Vietnam advances at a steadier pace, supported by supply-chain relocation from China; Meiko Electronics is injecting USD 340 million into a Hoa Binh PCB facility serving Apple and Samsung suppliers. Hanoi promotes energy-efficient refurbishment of tube houses, with potential to cut urban household energy use by at least 20%. Investment pledges surged in Hưng Yên, topping USD 4.5 billion in early 2025, while Belgian developers have earmarked USD 400 million for industrial land in Quang Ninh. Yet installer scarcity and uneven BIM adoption temper Northern growth versus the South.