Market Trends of Vietnam Construction Industry
Government plans to develop Infrastructure driving the Construction Market
- Vietnam's government adopted the country's road development plan for 2021-2030 in September 2021. By 2030, the plan seeks to create nearly 5,000 kilometers of expressways, up from 3,841 kilometers in 2021. By 2030, Vietnam plans to construct 172 national highway routes with a total length of 29,795 kilometers, up from 5,474 kilometers in 2021. It also intends to construct 3,034 kilometers of coastal roads that will connect 28 cities and provinces. The top building projects in Vietnam that were started in the third quarter of 2022.
- Lotte Eco Smart City (USD900m) - On a 7.45ha plot of ground in Ho Chi Minh City, a mixed-use complex will be built as part of the project. Beginning in Q3 2022, construction is scheduled to be finished in Q1 2029. The project is a part of the government's 2002 development strategy for the Thu Thiem district.
- Ju Teng Electronic Components and Auto Parts Manufacturing Plant (USD200m) - On 120 ha of land in Nghe An, the proposal calls for the building of an auto parts and electronic component manufacturing facility. Beginning in Q3 2022, construction was anticipated to be completed in Q2 2023. The project seeks to supply the region's rising demand for electronic components.
- Deep C 2 Hai Phong Industrial Zone Core5 Hai Phong (USD60m) - In Hai Phong, a 96,000m2 ready-built warehouse is being constructed as part of the project. The construction project began in Q3 2022 and was anticipated to be finished in Q2 2023. The project seeks to give the area cutting-edge logistics facilities.
Understand The Key Trends Shaping This Market
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Investments in Residential Sector
- With rapid urbanization and increasing disposable income, the demand for housing units has soared. The government is also playing a crucial role in promoting affordable housing through various initiatives. This has led to a surge in construction activities across both urban and rural areas.
- In Q4 2022, the successful transaction volume for condominiums and individual houses was 14,349 transactions (approximately 28% higher than Q3/2022), including 3,821 transactions in the North, 5,968 transactions in the Central region, and 4,560 transactions in the South. Specifically, there were 454 successful transactions in Hanoi and 1,986 successful transactions in Ho Chi Minh City. In Q4 2022, the successful transaction volume for land plots was 149,197 transactions (approximately 130% higher than Q3/2022), including 29,402 transactions in the North, 32,579 transactions in the Central region, and 87,216 successful transactions in the South.
- With rising energy costs, homeowners and businesses are looking for ways to reduce their energy consumption. Sustainable buildings, with features like proper insulation, energy-efficient appliances, and smart systems, can significantly lower energy usage and save on utility bills.
- The government of Vietnam has also recognized the importance of sustainable construction and has implemented policies to promote it. For example, the Ministry of Construction has issued guidelines for green building certification, encouraging developers to adopt sustainable practices. This has led to an increase in green buildings across the country. According to the Ministry of Construction (MoC), Vietnam’s housing demand will surge by 70 million square meters each year, equivalent to 17,500 buildings of 30 floors by 2030.
- According to industry sources, the number of green building projects under construction is 381 and is projected to increase to 582 by 2030.
