Construction in Vietnam - Key Trends and Opportunities to 2024

Construction in Vietnam - Key Trends and Opportunities to 2024

Summary

The Vietnam construction industry was growing at a relative fast pace prior to the Coronavirus (COVID-19) crisis, with the industry expanding by 9.1% in real terms in 2019. Growth had been driven by investments on the national strategic projects, mainly in the transport infrastructure sector. However, the imposition of Large-Scale Social Restrictions (PSBB) by the government to contain the spread of COVID-19, along with global trade and travel disruptions which affected the availability of manpower and raw materials, weighed on growth in Vietnam’s construction industry in the first half of 2020. Consequently, GlobalData expects the industry’s growth to decelerate to 5.5% in real terms this year, which is a relatively strong performance compared to other markets in the region.

According to the General Statistics Office (GSO), the construction industry’s value-add grew by 5.7% year on year (YoY) in real terms in the third quarter of 2020 (the latest data available at the time of writing), improving from 4.7% and 4.4% in the previous two quarters, respectively. In the coming quarters, the construction industry’s output growth will continue to pick up, supported by investments in transport and energy infrastructure.

Efforts to attract foreign investment through the public private partnerships (PPP) model will support the construction industry over the forecast period. In June 2020, the national assembly adopted the law on PPP investment, which is aimed at regulating investment activities and attracting private investment under the PPP model. The government’s efforts to balance supply and demand for affordable housing will also generate momentum in the residential sector. Ongoing urbanization will continue to generate demand for residential and infrastructure development.

This report provides detailed market analysis, information and insights into Vietnam’s construction industry, including -

• Vietnam’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Vietnam’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Vietnam. It provides -

• Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in Vietnam, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.