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Construction in Vietnam - Key Trends and Opportunities to 2023

Published By :

GlobalData

Published Date : Jan 2019

Category :

Construction

No. of Pages : 53 Pages

Construction in Vietnam - Key Trends and Opportunities to 2023

Summary

Vietnams construction industry registered growth of 8.5% in real terms in 2018. This was preceded by an average annual growth rate of 9.3% during the preceding four years. Growth during the review period (2014-2018) was driven by positive developments in regional economic conditions and government investment in energy and transport infrastructure.

The industrys output value is expected to continue to expand in real terms over the forecast period (2019-2023), with investments in infrastructure construction, tourism infrastructure and housing projects continuing to drive growth. According to the governments estimates, the country requires an investment of VND1.0 quadrillion (US$48.0 billion) until 2023 to develop its transport infrastructure. In addition, the governments aim to improve local energy resources is expected to support investment in energy infrastructure projects, which will in turn fuel growth in the industry.

The trade war between the US and China is also expected to divert foreign investment towards Vietnam, a given the relative improvement in the countrys attractiveness as a manufacturing destination. This is likely to have a positive impact on construction industry, particularly in the industrial and logistics sectors.

The industrys output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 7.87% over the forecast period.

GlobalDatas "Construction in Vietnam - Key Trends and Opportunities to 2023", report provides detailed market analysis, information and insights into the Vietnamese construction industry, including -
- The Vietnamese 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 the Vietnamese construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

- GlobalData expects the residential construction market to account for 42.6% of the industrys total value in 2023 driven by the countrys rising population, ongoing urbanization and positive developments in regional economic conditions. Market expansion over the forecast period is also expected to be driven by public and private sector investments in the construction of new residential buildings to meet the increasing demand for housing.
- Forecast-period growth in the energy and utilities construction market will be driven by the governments plan to increase the share of renewable energy in terms of the total energy mix, encouraging investment in renewable energy infrastructure. The government aims to generate 31% of the countrys total consumer primary energy through renewable sources by 2020, 32.3% by 2030 and 44% by 2050. The plan is to generate 3.3% of the countrys total electricity production through solar power by 2030 and 20% by 2050.
- GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 13.96% in nominal terms, supported by the governments focus on the development of the countrys rail, road, airport and other core transport infrastructure through the PPP model. To cope with a rise in air traffic demand, the Ministry of Transport plans to expand the countrys airport infrastructure. In March 2018, the government announced the expansion plan of Tan Son Nhat International Airport. The plan includes the construction of a new terminal to handle 20 million passengers annually and expand two existing terminals in order to handle 30 million passengers annually by 2025. The total cost of the project is expected to be VND30.0 trillion (US$1.3 billion).
- The industrial markets growth in the forecast-period will be driven by increases in investments in industrial and manufacturing activities, as well as positive developments in domestic and regional economic conditions. Growth in the market will also be supported by the governments focus on the development of economic zones and industrial parks in the country. In the first half of 2018, the government approved an investment plan worth VND21.0 trillion (US$921.0 million) to improve the countrys economic zones and industrial parks by 2020.
- The total construction project pipeline in Vietnam - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at VND13.4 quadrillion (US$588.6 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 63.9% of the pipeline value being in projects in the pre-planning and planning stages as of January 2019.

Scope

This report provides a comprehensive analysis of the construction industry in Vietnam. It provides -
- Historical (2014-2018) and forecast (2019-2023) 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.
Table of Contents
1. EXECUTIVE SUMMARY
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE
3. LATEST NEWS AND INDICATORS
4. KEY DRIVERS AND RISKS
4.1. Economic Performance
4.2. Political Environment
4.3. Demographics
4.4. Risk Profile
5. CONSTRUCTION OUTLOOK
5.1. All Construction
5.1.1. Outlook
5.1.2. Project analytics
5.2. Commercial Construction
5.2.1. Outlook
5.2.2. Project analytics
5.3. Industrial Construction
5.3.1. Outlook
5.3.2. Project analytics
5.4. Infrastructure Construction
5.4.1. Outlook
5.4.2. Project analytics
5.5. Energy and Utilities Construction
5.5.1. Outlook
5.5.2. Project analytics
5.6. Institutional Construction
5.6.1. Outlook
5.6.2. Project analytics
5.7. Residential Construction
5.7.1. Outlook
5.7.2. Project analytics
6. KEY INDUSTRY PARTICIPANTS
6.1. Contractors
6.2. Consultants
7. APPENDIX
7.1. What is this Report About?
7.2. Definitions
8. ABOUT GLOBALDATA
8.1. GlobalData at a Glance
8.2. GlobalData Construction
8.3. Disclaimer
8.4. Contact Us

List of Tables
Table 1: Construction Outlook
Table 2: Vietnam, Key Economic Indicators
Table 3: Vietnam, Construction Output Value (nominal, VND Billion)
Table 4: Vietnam, Construction Output Value (nominal, US$ Million)
Table 5: Vietnam, Top Commercial Construction Projects by Value
Table 6: Vietnam, Top Industrial Construction Projects by Value
Table 7: Vietnam, Top Infrastructure Construction Projects by Value
Table 8: Vietnam, Top Energy and Utilities Construction Projects by Value
Table 9: Vietnam, Top Institutional Construction Projects by Value
Table 10: Vietnam, Top Residential and Mixed-Use Construction Projects by Value
Table 11: Vietnam, Key Contractors
Table 12: Vietnam, Key Consultants
Table 13: GlobalData Construction Market Definitions
Table 14: Construction Risk Index Ratings and Scores

List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
Figure 2: Vietnam, Construction Projects Pipeline by Sector (VND Trillion)
Figure 3: Vietnam, Risk Profile
Figure 4: Vietnam, Risk Comparison
Figure 5: Vietnam, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
Figure 6: Vietnam, Construction Output Value, Growth Matrix
Figure 7: Vietnam, Construction Output Value, by Sector (VND Billion), 2014-2023
Figure 8: Vietnam, Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 9: Vietnam, Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 10: Vietnam, Commercial Construction Output by Project Type (VND Billion), 2014-2023
Figure 11: Vietnam, Commercial Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 12: Vietnam, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 13: Vietnam, Industrial Construction Output by Project Type (VND Billion), 2014-2023
Figure 14: Vietnam, Industrial Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 15: Vietnam, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 16: Vietnam, Infrastructure Construction Output by Project Type (VND Billion), 2014-2023
Figure 17: Vietnam, Infrastructure Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 18: Vietnam, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 19: Vietnam, Energy and Utilities Construction Output by Project Type (VND Billion), 2014-2023
Figure 20: Vietnam, Energy and Utilities Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 21: Vietnam, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 22: Vietnam, Institutional Construction Output by Project Type (VND Billion), 2014-2023
Figure 23: Vietnam, Institutional Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 24: Vietnam, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 25: Vietnam, Residential Construction Output by Project Type (VND Billion), 2014-2023
Figure 26: Vietnam, Residential Construction Projects Pipeline, Value by Stage (VND Billion)
Figure 27: Vietnam, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (VND Billion), 2018-2023
Figure 28: Vietnam, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 29: Vietnam, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
Figure 30: Vietnam, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 31: Vietnam, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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