Dublin, Oct. 04, 2024 (GLOBE NEWSWIRE) -- The "Vietnam Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Vietnam is expected to grow by 9.8% to reach VND 695.60 trillion in 2024.
Despite near-term challenges in certain construction sectors, Vietnam's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 8.4% is projected during 2024-2028, with the country's construction output expected to reach VND 959.28 trillion by 2028, indicating substantial growth potential.
The construction industry in Vietnam is poised for continued growth, driven by government initiatives, urbanization, and increasing foreign investment. As the sector navigates challenges such as labour shortages and rising material costs, stakeholders must remain proactive in leveraging emerging trends and aligning with government priorities. By embracing sustainable practices, adopting innovative technologies, and fostering strategic partnerships, construction companies can capitalize on the immense opportunities presented by Vietnam's construction boom and contribute to the country's long-term prosperity.
The construction industry in Vietnam is experiencing rapid growth, driven by government initiatives, urbanization, and increasing foreign investment. As the country transforms into one of the world's fastest-growing economies, the construction sector is poised to play a pivotal role in shaping its future.
Government Investment in Infrastructure: The Vietnamese government has adopted plans to develop the country's road network, aiming to create nearly 5,000 kilometers of expressways and 29,795 kilometers of national highway routes by 2030. This investment in transportation infrastructure is expected to boost construction activity across the country.
Emphasis on Sustainability: There is a growing emphasis on sustainable construction practices in Vietnam, with developers increasingly incorporating eco-friendly materials and energy-efficient designs into new projects. The government has implemented policies to promote sustainable development, increasing green buildings across the country.
Reasons to buy
- Comprehensive Insight into Construction Market Dynamics: Gain a deep understanding of the construction market, including opportunities, industry trends, and key drivers across over 40+ market segments and sub-segments.
- Detailed Analysis of Construction Costs: Explore construction costs broken down by type, including material and labor costs. The report provides detailed information on costs by construction type and worker.
- Top Ten Cities Construction Value: Access valuable data on the construction market size for major cities, focusing on key city-level sectors.
- In-Depth Volume and Value Data: Obtain a thorough understanding of the market from both value and volume perspectives, covering historical data and forecasts by activity and units.
- Strategic Market-Specific Insights: Formulate targeted strategies by identifying growth segments and opportunities and assessing key trends, drivers, and risks within the construction industry.
- City-Level Trend Analysis: Get detailed trend analyses for tier-1, tier-2, and tier-3 cities, offering actionable insights for urban-focused strategies.
Residential Construction: Meeting Housing Demands
- Affordable Housing Initiatives: The government is promoting affordable housing through various initiatives, such as the construction of one million social housing units by 2030. These efforts aim to address the country's housing deficit and improve living conditions for its growing population.
- Shift Towards Vertical Living: As urbanization continues, there is a notable shift towards high-rise apartments and mixed-use developments, particularly in major cities like Ho Chi Minh City and Hanoi. This trend is driven by land scarcity and the need for integrated living environments.
Commercial Construction: Attracting Global Investment
- Retail and Hospitality Developments: The commercial construction sector is witnessing significant investments in retail spaces, office buildings, and mixed-use projects. Global hoteliers are launching new properties to capitalize on the country's growing tourism industry, while domestic developers are also expanding their portfolios.
- Industrial Real Estate Growth: The strong growth of industrial real estate during the pandemic has attracted new investors, both domestic and foreign, to the Vietnamese market. Companies like Vinhomes, Thanh Cong Group, JD.com, Fraser, and ESR are investing in industrial parks and logistics facilities to support the country's manufacturing and export sectors.
Institutional Construction: Enhancing Public Services
- Education and Healthcare Facilities: The government is allocating substantial funds to develop educational and healthcare institutions, aiming to improve public services and address the needs of a growing population. These investments support the country's long-term social and economic development.
- Disaster Resilience: Given Vietnam's vulnerability to natural disasters, institutional projects incorporate resilience measures into their designs. This focus on disaster preparedness ensures the continuity of essential public services and enhances community safety.
Industrial Construction: Supporting Economic Growth
- Manufacturing and Logistics Facilities: The industrial construction sector is experiencing growth driven by increased demand for manufacturing and logistics facilities. The government's initiatives to boost local production and reduce reliance on imports are fuelling investments in this area.
- Renewable Energy Projects: Vietnam is investing significantly in renewable energy projects, particularly solar power. The country aims to increase its renewable energy capacity, requiring extensive industrial construction efforts.
Infrastructure Construction: Building for the Future
- Major Infrastructure Projects: The Vietnamese government invests heavily in infrastructure projects, including developing expressways, national highway routes, and coastal roads. These projects are transforming the country's landscape and enhancing connectivity across regions.
- Public-Private Partnerships (PPPs): The newly enacted Public-Private Partnership (PPP) Code is expected to facilitate collaboration between the government and private sector, enabling the realization of high-quality infrastructure projects. As of February 2024, 117 PPP projects, valued at PHP 2.4 trillion (USD 43 billion), are in the pipeline.
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