Dublin, Jan. 16, 2024 (GLOBE NEWSWIRE) -- The "Vietnam Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Vietnam is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 13% during 2023-2027, with construction output expected to reach VND 903,403.4 billion by 2027.
The Vietnamese construction industry has been in a spot of bother in 2023. Rising construction material prices, higher debt taken by builders, and dampened demand during the pandemic period have resulted in the downfall of hundreds of construction firms in the Vietnamese market over the last few quarters.
To spur economic growth and development in the region, the Vietnamese government has been increasingly investment in transport infrastructure. Several projects were completed in H2 2023, with many more planned to be finished over the next two to three years. These infrastructure projects will, therefore, keep supporting the recovery of the struggling construction industry in Vietnam from the short to medium-term perspective.
Developers stalled more than a thousand projects in Vietnam due to funding crisis in 2023
The crackdown by the Vietnamese government on corruption, builders taking on too much debt, and dampened demand due to the pandemic outbreak are among the various factors that have triggered a property crisis in Vietnam. According to the construction ministry, the property crisis has affected more than 1,800 builders, forcing 340 companies into solvency in Q1 2023.
The Vietnamese Real Estate Association also revealed that the government has frozen the resources, leading to a funding crunch for developers in Vietnam. As a result, builders have suspended more than 1,200 real estate projects totaling US$34 billion. The association also revealed that each of the 63 provinces and cities in Vietnam has 20 suspended projects on average. The stoppage of construction activities at these projects is impacting the growth of the construction market in Vietnam.
Construction material prices further increased in H2 2023 in the Vietnamese market
Despite the government's attempts to boost demand for iron and steel by reducing supply through measures such as cutting public investment, defunding crucial projects, and emphasizing social housing initiatives, construction material prices have remained high in H1 2023. This has added further pressure on the growth of the construction market in Vietnam. In H1 2023, the surge in prices of construction materials resulted in many firms stalling their projects, as they were unwilling to take on the financial risks.
The development of major transport projects to support the recovery of the construction industry in Vietnam
The government has planned several infrastructure projects, including in the transport sector, which are slated for completion over the next two to three years in the Vietnamese market. This includes the development of the second phase of the North-South Expressway Project's Can Tho-Hau Giang-Ca Mau section. The project is poised to finish in 2025.
To spur economic development and attract global automakers in the region, where the EV market is experiencing strong growth, it remains crucial for the Vietnamese to provide better infrastructure. Consequently, the publisher expects the Vietnamese government to further increase its investment in the development of transport infrastructure over the next three to four years. The rising investment, coupled with global automakers setting up a manufacturing base in Vietnam, will, therefore, aid the growth of the broader construction market in Vietnam from the short to medium-term perspective.
This report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in Vietnam, this databook offering primarily provides data-centric analysis with charts and tables.
- Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry in Vietnam.
- Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
- Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of top 10 cities in Vietnam by construction value.
- Construction Cost Structure Analysis: Provides outlook of different construction cost like material, labour, equipment, and others costs by construction value. At granular level, this module provides in detail material cost analysis by type of materials and labour cost by type of work by construction value.
Market Data and Insights:
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 in Vietnam.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
- Vietnam Economic Indicators
- Vietnam Top Cities Construction Data
- Vietnam Residential Building Construction Coverage
- Vietnam Residential Green Building Construction Coverage
- Vietnam Commercial Building Construction Coverage
- Vietnam Commercial Green Building Construction Coverage
- Vietnam Industrial Green Building Construction Coverage
- Vietnam Institutional Building Construction Coverage
- Vietnam Institutional Green Building Construction Coverage
- Vietnam Infrastructure Construction Sectors
- Vietnam Green Infrastructure Construction
- Vietnam Construction Cost Structure Analysis
In-depth Understanding of Construction Cost:
This report provides in depth analysis of construction costs by type of cost. It also provides data points by different material costs involved and different labour cost. This report further provides information by type of construction and Cost by type of worker.
- Top Ten Cities Construction Value Data: Construction market size by key sectors at city level.
- Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers, and risks in construction industry.
- City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.
For more information about this report visit https://www.researchandmarkets.com/r/mmfvrm
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
