Vietnam Construction Market Size (2024 - 2029)

The Vietnam construction market is experiencing significant growth, driven by the country's transformation into a key East Asian growth engine and its appeal to international investors. Despite challenges such as the pandemic, the Vietnamese economy has shown resilience, with sustained demand in the residential construction sector, particularly for high-end condos. The increasing population and urbanization are fueling the need for new housing units, contributing to the expansion of the construction market. Additionally, the industrial real estate sector has attracted numerous investors, further supporting the market's growth trajectory.

Market Size of Vietnam Construction Industry

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Vietnam Construction Industry Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 69.20 Billion
Market Size (2028) USD 102.20 Billion
CAGR (2024 - 2029) 8.10 %
Market Concentration Medium

Major Players

Vietnam Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Vietnam Construction Market Analysis

The Vietnam Construction Market size is estimated at USD 69.20 billion in 2024, and is expected to reach USD 102.20 billion by 2028, growing at a CAGR of 8.10% during the forecast period (2024-2028).

  • Vietnam has risen to prominence as the most recent East Asian growth engine, attracting the attention of international investors. It is in the midst of a transformation. The government's economic reforms transformed the country into one of the world's fastest-growing economies.
  • Despite the epidemic, the Vietnamese economy continued to demonstrate significant growth patterns, making the country a favorable investment destination for foreigners. In the residential construction market, high-end condos in the city remained in demand despite the pandemic, and there were no signs of a fall in prices.
  • The growth in the Vietnamese population is driving the demand for new housing units, thereby supporting the growth of the residential construction market in the Southeast Asian market.
  • Notably, the population is projected to further increase over the next few years in Vietnam. Vietnam's population is equivalent to 1.23% of the total world population.
  • According to the Ministry of Construction, the urban population proportion is at more than 40% currently and is projected to reach 45% by 2030. As a result of this growth in proportion, Vietnam will have to add another 70 million square meters of housing every year.
  • Over the next three to four years, Vietnam is expected to experience a high demand growth for housing units in big cities and industrial zones. This growth in demand will keep assisting the growth of the residential construction segment, as well as the growth of the overall construction market, from the short to medium-term perspective.
  • With the strong growth of industrial real estate during the pandemic, many new investors decided to enter the market, including domestic developers (Vinhomes, Thanh Cong Group) and foreign developers (JD.com, Fraser, ESR). In addition, investment funds have also participated via investment into potential projects such as Actis, which recently announced an investment into a local industrial park operator.

Vietnam Construction Industry Segmentation

Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish.

The Vietnam construction market is segmented by sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction). 

The report offers market size and forecasts for the Vietnam construction market in value (USD) for all the above segments.

By Sector
Residential Construction
Commercial Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utilities Construction
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Vietnam Construction Market Size Summary

The construction industry in Vietnam is experiencing robust growth, driven by the country's rapid urbanization and economic reforms that have positioned it as a key growth engine in East Asia. The sector is witnessing a surge in demand for residential and industrial construction, fueled by an increasing population and urbanization trends. The government's initiatives, such as the road development plan and promotion of affordable housing, are further propelling the market. Despite challenges posed by the pandemic, the construction market has remained resilient, with high-end residential projects continuing to attract investment. The influx of both domestic and international developers into the market underscores Vietnam's appeal as a lucrative investment destination.

The Vietnamese construction market is characterized by intense competition among major domestic and international players, with significant investments in infrastructure and sustainable building practices. The government's focus on green building certification and sustainable construction has led to a rise in eco-friendly projects, aligning with global sustainability trends. The sector's growth is supported by substantial initial capital investments and strategic diversification into real estate and renewable energy. Key projects, such as the development of expressways and industrial zones, highlight the industry's expansion and the government's commitment to enhancing the country's infrastructure. As the market continues to evolve, it presents numerous opportunities for growth and innovation in construction practices.

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Vietnam Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Economic and Construction Market Scenario in Vietnam

    2. 1.2 Market Overview of Construction Materials in Vietnam

    3. 1.3 Technological Innovations in the Construction Sector

    4. 1.4 Impact of Government Regulations and Initiatives on the Industry

    5. 1.5 Comparison of Key Industry Metrics of Vietnam with Other ASEAN Member Countries (Analyst's View)

    6. 1.6 Insights into Industry Value Chain Analysis

    7. 1.7 Comparison of Construction Cost Metrics of Vietnam with Other ASEAN Member Countries (Analyst's View)

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION (Market Size By Value)

    1. 2.1 By Sector

      1. 2.1.1 Residential Construction

      2. 2.1.2 Commercial Construction

      3. 2.1.3 Industrial Construction

      4. 2.1.4 Infrastructure (Transportation) Construction

      5. 2.1.5 Energy and Utilities Construction

Vietnam Construction Market Size FAQs

The Vietnam Construction Market size is expected to reach USD 69.20 billion in 2024 and grow at a CAGR of 8.10% to reach USD 102.20 billion by 2028.

In 2024, the Vietnam Construction Market size is expected to reach USD 69.20 billion.

Vietnam Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)