Vietnam Prefabricated Buildings Industry Study - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Vietnam Prefabricated Buildings Industry is segmented by Material Type (Concrete, Glass, Metal, Timber and Other Material Types) and Application (Residential, Commercial, and Other Applications (Infrastructure and Industrial))

Market Snapshot

cagr.png
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4 %

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Market Overview

The Prefabricated Building Market in Vietnam is expected to grow at a CAGR of approximately 4% during the forecast period driven by the increasing demand for affordable housing and upcoming projects and initiatives in the infrastructure and construction sector.

The growing middle class and the working class in Vietnam have an increasing demand for new housing. If this demand is not met, the country could experience the kinds of affordability crises seen in countries like Brazil or Ireland. In recent years, the government has approved USD 1.3 billion for what it calls social housing projects. However, that amount has not been enough to meet the demand for affordable housing. Recently, in Jun 2020, the ministry of construction announced an additional USD 86.9 million for four commercial banks to facilitate lending for social housing projects and buyers.

In the past ten years, with the rapid development of the economy, the rising labor costs, the precision and quality of prefabricated components, the improvement of the construction technology and management level of assembly buildings, and the promotion of national policy factors, prefabricated buildings have gained momentum.

The increasing number of skyscrapers is a good sign for the Vietnamese prefabrication construction industry, which brings opportunities for the level of modern construction. For the construction industry in Vietnam, prefabricated steel houses and precast concrete is expected to be a new wave in bringing down the construction costs and time

In order to create adequate demand for prefabricated homes, effective marketing strategies must be implemented regarding the benefits. Without effective targeted marketing, consumers in Vietnam will take a long time to embrace prefabricated products.

Scope of the Report

The Vietnam Prefabricated Buildings Market covers the growing trends and projects in prefab building markets, like commercial construction, residential construction, industrial construction. The report also covers the industry along the type of material used, like concrete, timber, glass, metal, and other types. Along with the scope of the report also it analyses the key players and the competitive landscape in the Vietnam Prefabricated Buildings Market. The impact of COVID’19 has also been incorporated and considered during the study.

Material Type
Concrete
Glass
Metal
Timber
Other Material Types
Application
Residential
Commercial
Other Applications ( Industrial, Institutional, and Infrastructure)

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Key Market Trends

Precast Concrete Holds the Major Share Driven by Infrastructure Projects

Vietnam’s urban landscape continues to evolve today, but unlike the earlier periods of urban development, with the influence of smarter global construction processes and methods. The growth of the building and construction industry as well as improvements in financial conditions in the region has led to an increase in demand for precast concrete elements. According to industry sources, there will be a large public information gap about product attributes.

With 50% of Vietnam’s population expected to be living in cities during the forecast period, major cities Hanoi and Ho Chi Minh are building rapid transit systems exceeding USD 22 billion.

To develop and upgrade the national infrastructure in the roadways and energy sector, an investment of total USD 120 billion has been announced.

The commercial construction sector is expected to be a driving factor in Vietnam’s prefabricated buildings industry driven by major transportation and infrastructure projects that are in line along with other non-residential constructions like office spaces, malls, and retail stores. Since there has been an uptrend of FDI as well as state investment to develop the commercial sector, the market for prefabricated construction is likely to see a boost during the forecast period.

Most of the constructions in the public infrastructure, residential and non-residential are made by prefabricated building components like the beams, wall panels etc., which are made by precast concrete. With several upcoming projects in construction, the precast concrete market is also likely to witness a growth.

Vietnam Prefabricated Buildings Market -

Rise in Real Estate Market and FDI Investments can Boost the Market

The booming middle class and the rapid rate of urbanization are the major driving factors in the real estate sector in Vietnam. Affordable housing is becoming a major concern in the main urban cities in Vietnam such as Hanoi due to the increase in the middle-class population and rapid urbanization. To find a reasonable housing solution for the middle class amidst these factors is of major concern for the government.

With just a 5.7% increase on the current level in the minimum wage from 2020, more people are likely to be in the segment of the middle class, spurring the demand for middle-segment apartments. At present, 36% of the nations' total population resides in big cities such as Hanoi and Ho Chi Minh City. It is also expected that Vietnam’s urban population will rise by 3.85% every year until 2050, much higher than ASEAN’s average rate of 2.1%.

Because of the FDI policies that are in place, the nation is attracting huge investments in the various sectors including the construction industry. This is one of the main factors to drive growth in the prefabricated buildings industry. The latest data from the Foreign Investment Agency (FIA) shows that FDI in Vietnam in 2019 reached USD 38.2 billion an increase of 7.2% as compared to the same period in 2018.

Out of 19 sectors that recieved the capital, manufacturing and processing hold the major share with total capital of USD 24.56 billion, accounting for 65 % of total registered investment capital. This was followed by real estate at USD 3.88 billion and then by retail and wholesale.

Vietnam Prefabricated Buildings Market - 2

Competitive Landscape

The report covers the major players operating in the Vietnam Prefabricated Buildings Industry. The market is highly competitive with a few players occupying the major share. The market is fragmented, and the market is expected to grow during the forecast period. Going forward, the prefabricated buildings industry in Vietnam is expected to remain stronger, with the formulated central government policy objectives and the need for affordable housing. The major market players include TLC Modular, BMB Steel, etc. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry

    4. 4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry

    5. 4.5 Cost Structure Analysis of the Prefabricated Buildings Industry

    6. 4.6 Impact of COVID 19

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunitites

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 Material Type

      1. 6.1.1 Concrete

      2. 6.1.2 Glass

      3. 6.1.3 Metal

      4. 6.1.4 Timber

      5. 6.1.5 Other Material Types

    2. 6.2 Application

      1. 6.2.1 Residential

      2. 6.2.2 Commercial

      3. 6.2.3 Other Applications ( Industrial, Institutional, and Infrastructure)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 BEST METAL BUILDING AND ACCESSORY JOINT- STOCK COMPANY

      2. 7.2.2 TRAN DUC JOINT STOCK COMPANY

      3. 7.2.3 QH PLUS PHU MY COMPANY LIMITED

      4. 7.2.4 CONSTRUCTION CORPORATION NO 1

      5. 7.2.5 NEWTECONS

      6. 7.2.6 TLC MODULAR

      7. 7.2.7 HUNG THINH INCONS JOINT STOCK COMPANY

      8. 7.2.8 HAI PHAT INVESTMENT JOINT STOCK COMPANY

      9. 7.2.9 QUICK SMART HOUSE

      10. 7.2.10 BECAMEX IDC ONE MEMBER CORP._INVESTMENT & INDUSTRY DEVELOPMENT GROUP

      11. 7.2.11 DELTA CORPORATION

      12. 7.2.12 CONSTRUCTION JOINT STOCK COMPANY N01

      13. 7.2.13 DIAMOND DEVELOPMENT GROUP *

    3. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. APPENDIX

    1. 9.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)

    2. 9.2 Key Production, Consumption,Exports & import statistics of construction Materials

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Frequently Asked Questions

The Vietnam Prefabricated Buildings Industry market is studied from 2016 - 2026.

The Vietnam Prefabricated Buildings Industry is growing at a CAGR of 4% over the next 5 years.

BEST METAL BUILDING AND ACCESSORY JOINT- STOCK COMPANY, TRAN DUC JOINT STOCK COMPANY, QH PLUS PHU MY COMPANY LIMITED, CONSTRUCTION CORPORATION NO 1, NEWTECONS are the major companies operating in Vietnam Prefabricated Buildings Industry.

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