VIETNAM CONSTRUCTION MATERIALS MARKET

Vietnam Construction Materials Market forecast is expected to expand at steady growth rate in the coming years owing to rapid population growth and urbanization along with governmental regulations and foreign investments in infrastructure development.

Major Vietnam Construction Materials Market Drivers and Emerging Trends

The expanding population in Vietnam coupled with rapid urban development and rising levels of disposable income are driving the need for new housing complexes in major urban areas and industrial zones in the next years. The government initiatives to promote affordable housing have also sparked increased construction activities in rural and urban regions. This growth is boosting residential construction and fueling demand for building materials across the construction market. The surge in industrial real estate during the pandemic attracted a wave of new investors including local and international developers. Moreover, investment firms have contributed by investing in various projects including Actis, which disclosed an investment in a domestic operator of an industrial park.

The other factor supporting the expansion of Vietnam construction materials market size is government initiatives aimed at infrastructure development which propels growth in the construction market. Vietnam’s government has adopted a road development strategy for 2021 to 2030 which aims to construct almost 5,000 kilometers of highways. Vietnam has set targets to build 172 national highway networks covering 29,795 kilometers by 2030 alongside plans to develop 3,034 kilometers of seaside roads connecting 28 cities and provinces. These ambitious infrastructure initiatives will demand construction materials in substantial quantities and of superior quality to construct roads and other necessary infrastructure. Additionally, in an effort to boost economic growth and national development, the government has been progressively increasing its investments in transportation infrastructure with numerous projects were finalized in the latter part of 2023 and plans for several more to be completed in the next 2 or 3 years. These projects are anticipated to bolster the recovery of Vietnam’s struggling industry in the foreseeable future.

 Vietnam’s government has also prioritized sustainable construction and has rolled out regulations to promote its integration into building practices. For instance, the Ministry of Construction has provided standards for eco-friendly building certification which promotes developers to incorporate sustainable practices such as the utilization of environmentally friendly materials.

Nevertheless, there are challenges that can hamper the market expansion which includes the shortage of skilled workforce. The lack of available workers is a significant challenge that has a notable impact on the construction and the materials industry. Insufficient workforce often results in project delays which leads to higher costs and potential violations of contracts. Furthermore, the quality of work can suffer when projects are hurried or when less skilled workers are enlisted to cover shortages. Another obstacle includes fluctuations in material prices where it saw a rise in the latter half of 2023. In spite of government efforts to increase demand for steel and iron by limiting supply through actions such as reducing public investment, cutting funding for vital projects, and prioritizing social housing plans, the prices of construction material remained high during the early months of 2023. This has intensified market growth challenges where escalating material prices caused several firms to suspend their projects and highlights their concerns over financial risks.

By product type, the market is segmented into aggregates, bricks, metal, cement, and others. The aggregates lead the segment driven by the strong growth in the construction sector. Aggregates find multiple applications in the construction industry including asphalt and portland concrete, erosion control, among others and are essential components in bridges, buildings, roads, and others.

By application, the market is divided into commercial, residential, and industrial sectors. The government’s target to build one million housing units in residential sector represents a significant commitment to addressing house shortages and improving affordability.

Top Market Players

Several leading players in the market are Vicostone JSC, Hoa Phat Group, Viglacera Corporation, among others.

Segments covered in the Report:

The Vietnam Construction Materials Market has been segmented on the basis of material type and by end-use. Based on the material type, the market is segmented into aggregates, cement, bricks and blocks, metals, others. Based on the end-use, the market is segmented into residential, commercial, industrial.

Market Segmentation

Vietnam Construction Materials Market by Material Type

• • Aggregates
  • Cement
  • Bricks and Blocks
  • Metals
  • Others

Vietnam Construction Materials Market by End-use

• • Residential
  • Commercial
  • Industrial

Vietnam Construction Materials Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Vicostone JSC
  • Hoa Phat Group
  • Viglacera Corporation