VIETNAM CONSTRUCTION AND INSTALLATION INDUSTRY

In 2017, excavators continued to be the most imported construction machine, accounted for 89% of the total number of construction machines imported. Followed by roller with 6.3%, bulldozers with 4.7%. Total capital investment in the construction and installation industry in 2016 reached 211,678 billion VND, up 2.64% over 2015. In the past years, capital investment for construction and installation industry has increased continuously through each year. Total turnover of the construction and installation industry in 2016 reached 162.947 billion VND, up 32.14% compared with 2015.

In the first 6 months of 2018, the total electricity supply reached 105.9 billion kWh, up 11.6% over the same period of 2017. The power transmission infrastructure is limited and the total investment in the power grid is estimated at 824,000 billion VND from 2016 to 2030. By the year 2025, the Ministry of Natural Resources and Environment will meet the demand for clean water throughout the country with a 100% supply. The operating capacity of urban wastewater treatment plants ranges from 18.4% to 128% of designed capacity.

The construction and installation industry is facing risks such as: The duration of construction is often long, the progress of the work is subject to the impact of many aspects, labor safety for employees, price fluctuations, the supply of raw materials, the impact on construction conditions, the weather, the delays of EVN projects, etc.

The value of construction and installation industry in the past years has continued to grow steadily. In 2016, construction and installation industry value is estimated at VND 62,319 billion, up 10.4% comparing to 2015. It is forecast that in the coming years, the construction and installation industry will continue to grow stably and to have the annual growth rate CAGR = 4.3% in 2017-2025.

 

Abbreviations
Executive summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Impact of trade agreements
2. Global market
3. Vietnam market
3.1 Definition and classification
3.2 Value chain of the industry
3.3 Technology
3.3.1 Technology in Electrical installation
3.3.2 Technology in construction and installation of water supply and drainage systems
3.4 Market size and characteristics of Vietnam construction and installation market
3.5 Input factors
3.6 Outputs
3.6.1 Electrical installation
3.6.2 Construction and installation of water supply and drainage system
3.6.3 Installation of heating and air-conditioning systems
3.6.4 Finishing construction works
3.6.5 Other dedicated construction
4. Industry risk
4.1 Risk analysis
4.2 SWOT analysis
5. Outlook and forecast
5.1 Driving forces of industry development
5.2 Industry planning and outlook
5.3 Forecast
6. Enterprise analysis
6.1 Enterprise introduction
6.2 Financial analysis
7. Appendix of financial statements

Trung Nam Construction and Engineering Corporation
Truong Son Construction Corporation
Binh Duong Water Environment Joint Stock Company
Schindler Viet Nam, LTD
Thang Long Elevator Equipment Group Company Limited
THAC MO HYDROPOWER JOINT STOCK COMPANY
INTELLIGENT BUILDING SOLUTION JOINT STOCK COMPANY
Van Lang Industrial Waste Treatment and Environmental Consulting Company Limited
Jesco. Hoa Binh Engineering
Dae Young E&C Company Limited

List of figures
Figure 1: Construction’s distribution to GDP, 2013 – 2021f
Figure 2: GDP growth, 2015-Q2/2018
Figure 3: VND/USD exchange rate, 2013-6/2018
Figure 4: Value of construction and infrastructure, 2010-2020
Figure 5: FDI, 2014-Q2/2018e
Figure 6: FDI attraction by sector, 6Ms/2018
Figure 7: Population pyramid, 2016
Figure 8: Urbanization rate, 2010 – 2017
Figure 9: Situation of ODA attraction and disbursement, 2010-2018f
Figure 10: Value of global construction industry, 2016-2022f
Figure 11: Average contribution rate of construction industry in global GDP, 2016-2022f
Figure 12: Proportion of civil engineering investment in each region by type of works, 2017e
Figure 13: Quantities and value of investment in new energy projects, 2009-2016
Figure 14: Share of new energy projects by region, 2009-2016
Figure 15: Share of new energy projects by type, 2009-2016
Figure 16: World’s top 10 largest steel producing companies, 2016
Figure 17: World’s top 10 largest steel producing countries, Q1/2017-Q1/2018
Figure 18: World’s top 10 largest cement producing companies, 2015
Figure 19: Cement producing volume of some countries , 2017
Figure 20: Top 10 international bidders having the largest turnover, 2015
Figure 21: Top 10 domestic bidders having the largest turnover, 2015
Figure 22: Number of enterprises in the industry, 2010-2016
Figure 23: Number of employees in the industry, 2010-2016
Figure 24: Number of enterprises by region, 2011-2016
Figure 25: Enterprise distribution by region, 2016
Figure 26: Total investment in construction and installation industry, 2010-2016
Figure 27: Fixed assets invested in construction and installation industry, 2010-2016
Figure 28: Sales of construction and installation industry, 2010-2016
Figure 29: Profit of construction and installation industry, 2010-2016
Figure 30: Movement of steel price, 8M/2017
Figure 31: Cement price of some factories, 6Ms/2018
Figure 32: Retail cement price by region, 6Ms/2087
Figure 33: Import share of construction machines by type, 2017e
Figure 34: Import share of construction machines by country, 2017e
Figure 35: Import share of construction machines by manufacturers, 2017e
Figure 36: Import share of new construction machines by manufacturers, 2017e
Figure 37: Labor productivity in Vietnam, 2006-2017
Figure 38: Labor productivity of each profession in Vietnam, 2016
Figure 39: Minimum wage by country. 2014 – 2016
Figure 40: Total electricity supply, 2010 – 6Ms/2018e
Figure 41: Producing structure of electricity, 2017
Figure 42: Production structure of electricity by source of materials, 2012 – 3M/2018e
Figure 43: Commercial electricity, 2012-6Ms/2018e
Figure 44: Commercial electricity by distribution corporation, 2016-2018
Figure 45: Electricity consumption per capita in Vietnam, 2000-2017e
Figure 46: Electricity consumption structure, 6Ms/2018
Figure 47: Power plant installed capacity in Vietnam and the CAGR in each period
Figure 48: Investment capital in Electrical installation, 2010-2016
Figure 49: Number of employees in Electrical installation, 2010-2016
Figure 50: Sales of electrical installation sector, 2010-2016
Figure 51: Profit of electrical installation sector, 2010-2016
Figure 52: Total investment capital in electricity grids, 2011-2030f
Figure 53: Demand for clean water consumption in Vietnam, 2015-2025f
Figure 54: Proportion of clean water supply in Vietnam, 2015-2025f
Figure 55: Capacity of some wastewater treatment plants, 2013
Figure 56: Investment capital, 2010-2016
Figure 57: Number of employees, 2010-2016
Figure 58: Sales of water supply and drainage system sector, 2010-2016
Figure 59: Profit of water supply and drainage system sector, 2010-2016
Figure 60: Capital source for projects on water supply and drainage, 2016-2020
Figure 61: ODA structure mobilized for projects on water supply and drainage, 2016-2020
Figure 62: Investment in installation of heating and air conditioning systems, 2010-2016
Figure 63: Number of employees in installation of heating and air conditioning systems, 2010-2016
Figure 64: Sales of installation of heating and air conditioning systems, 2010-2016
Figure 65: Profit of installation of heating and air conditioning systems, 2010-2016
Figure 66: Number of enterprises and employees in finishing construction works, 2010 – 2016
Figure 67: Enterprise distribution in finishing construction works by region, 2010 – 2016
Figure 68: Sales and profit of finishing construction works, 2010 – 2016
Figure 69: Investment capital and fixed assets of finishing construction works, 2010 – 2016
Figure 70: Number of enterprises and employees in other dedicated construction sector, 2010 – 2016
Figure 71: Enterprise distribution in other dedicated construction sector by region, 2010 – 2016
Figure 72: Revenue and profit of other dedicated construction sector, 2010 – 2016
Figure 73: Investment capital and fixed assets of other dedicated construction sector, 2010 – 2016.
Figure 74: Structure of investment costs for infrastructure development in GDP, 1995 – 2013
Figure 75: Value of construction and installation industry, 2014-2025f
Figure 76: Net revenue growth, 2016-2017
Figure 77: Gross profit growth, 2017
Figure 78: Payment indicator, 2017
Figure 79: Receivebles turnover ratio, 2017
Figure 80: Solvency, 2017
Figure 81: Total asset turnover, 2017
Figure 82: Fixed asset turnover, 2017
Figure 83: Administrative expenses/Net revenue ratio, 2016-2017
Figure 84: interest expenses/Net revenue ratio, 2016-2017
Figure 85: Profit margin, 2017

List of tables
Table 1: Typical electrical installation projects
Table 2: Typical water-main and sewerage installation projects
Table 3: World’s top 10 biggest building contractors, 2016
Table 4: Top 10 countries with the best infrastructure in the world in 2016 – World Economic Forum
Table 5: Comparison between MBR and MBBR
Table 6: Urban water waste treatment plants and technology used
Table 7: Length of transmission and distribution grid, 2011 – 2017
Table 8: Typical national grid upgrading projects put into use in 2017
Table 9: Typical national grid upgrading projects which are expected to put into use in 2018
Table 10: Electriccity projects to operate in 2018
Table 11: Power infrastructure projects, 2016-2020
Table 12: Top enterprises in electrical installation sector having the largest revenue in 2016
Table 13: Typical wastewater treatment plants completed in the period 2013-2016
Table 14: Development targets of wastewater treatment and drainage
Table 15: Top enterprises that have the highest revenue in sector of installation of heating and air conditioning systems, 2016
Table 16: Top 10 enterprises in construction works finishing sector having the largest revenue in 2016
Table 17: Top 10 enterprises in other dedicated construction sector having the largest revenue in 2016
Table 18: Largest urban area of Vietnam Estimated in 2017