VIETNAM CONSTRUCTION INDUSTRY

While the Asian construction industry is showing signs of cooling, typically the slowing economic growth of China has indirectly affected the construction industry. A wide range of industries, raw materials are affected as cement, steel, … China accounts for a large proportion not only in the global construction industry but also in Asia, so China’s influence on the regional construction market is very huge. Meanwhile, in Europe and North America, the construction market continued to remain unchanged over the past several years, due to the volatile regional economic situation and unstable recovery.

In Vietnamese construction market, after a long time of developing “bubbles” with virtual prices and then falling into recession, house prices gradually return to real value. On 4/4/2017, the Ministry of Construction issued Decision 235 / QD-BXD announcing the construction cost estimation norm. On 29/9/2017, the Ministry of Construction issued Circular No. 10/2017/TT-BXD on national technical standards on products, goods, construction materials and guidance on technical regulation conformity certification and announcement.

Construction machinery imports continued to be vibrant in 2017. Japan, South Korea and China continued to be 3 main markets of Vietnam. Becoming an export-oriented economy with export turnover accounting for a significant portion of 80% nominal GDP, Vietnam is attracting a large and growing number of foreign investment. With the increase in demand for land and industrial plants, this segment will continue to be an attractive investment channel.

The typical Vietnam construction enterprises belong to 3 following groups: (i) housing and industrial construction: Cotecons, Hoa Binh, Deta, Song Đa, Vissai… (ii) infrastructure construction: Cienco 1, Vinaconex,… (iii) dedicated construction: Samsung Engineering, Becamex showed the positive growth rate compared to the same period last year. Among the Vietnam construction enterprises, Cotecons is a bright spot in revenue as well as profit as the industry leader. It is noteworthy that in 2016, foreign-invested enterprises Chiel Industries Vietnam which always operated effectively in the previous years had the largest decrease in sales, caused by the instability from the parent company in Korea, withdrawing capital made Cheil hard to work. In the top 10 largest companies in Vietnam construction industry, there are companies such as Hoa Binh, Delta,..

 

Abbreviations
Executive summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
2. Industry overview
2.1 Global construction market
2.1.1 Scale and characteristics of world construction industry
2.1.2 Scale and characteristics of regional construction industry
2.2 Vietnam construction market
2.2.1 Vietnam construction industry overview
2.2.2 Construction activities
2.2.3 Construction output
2.2.3.1 Residential Houses
2.2.3.2 Non-residential Houses
2.2.3.3 Infrastructure
2.2.3.4 Dedicated construction
2.3 Driving forces of the industry
2.4 Industry planning
3. Enterprise analysis
3.1 Overview of enterprises
3.2 Profitability
3.3 Solvency
3.4 Affordability
3.5 Performance efficiency
3.6 Profit ratio

Coteccons Construction Joint Stock Company
Hoa Binh Construction & Real Estate Corporation
Petrovietnam Construction Joint Stock Corporation
Ninh Binh Vissai Joint Stock Company
CIENCO4 Group
Construction Corporation No.1 Joint Stock Company
Delta Civil And Industrial Construction Company Ltd
Song Da Corporation
Civil Engineering Construction Corporation No. 1
Cheil Industries Inc. Vietnam Co., Ltd.

List of figures
Figure 1: GDP growth by quarter, 2015 – Q1/2018
Figure 2: Construction sector’s contribution to GDP, 2013-2021f
Figure 3: Construction Value and Infrastructure, 2010-2022f
Figure 4: VND/USD exchange rate, 2013-3/2018
Figure 5: FDI, 2014 – Q1/2018
Figure 6: FDI attraction by sector, Q1/2018
Figure 7: Situation of ODA attraction and disbursement, 2010-2018f
Figure 8: GDP growth rate by region, 2000-2021f
Figure 9: Structure of total real estate assets by region in 2015
Figure 10: Value structure of the world construction industry, 2010 – 2020f
Figure 11: Top cities with the highest gross margin in civil engineering in 2016
Figure 12: Value of Asia’s construction industry, 2013 – 2019f
Figure 13: Construction value structure in Asia in 2014
Figure 14: Value structure of Asia’s construction market in 2014
Figure 15: Value of construction industry, 2010-2016
Figure 16: Number of employees in construction industry, 2010-2016
Figure 17: Construction industry value, 2012-6M/2017
Figure 18: Share of economic sectors in the construction industry, 6M/2017
Figure 19: Total supply by category, Q1/2018
Figure 20: Supply structure by region, Q1/2018
Figure 21: Vacancy rate and rental price, Q1/2018
Figure 22: Supply of commercial center for lease, 2010-Q1/2018
Figure 23: Rental price and vacancy rate of commercial centers, 2010-Q1/2018
Figure 24: Total supply, Q1/2018
Figure 25: Retail supply structure by region, Q1/2018
Figure 26: Vacancy rate and rental price, Q1/2018
Figure 27: Total supply of commercial centers, 2009-Q1/2018
Figure 28: Rental price and vacancy rate of commercial centers, 2009-Q1/2018
Figure 29: New supply and vacancy rate of grade A offices, 2010-Q1/2018
Figure 30: Total supply by region, Q1/2018
Figure 31: Office rental price, Q1/2015-Q1/2018
Figure 32: Average rental price by area, Q1/2018
Figure 33: Office supply and vacancy rate, Q1/2016-Q1/2018
Figure 34: Total supply and rental price by category, Q1/2018
Figure 35: Office rental price, Q1/2015-Q1/2018
Figure 36: Typical projects under construction, 2018
Figure 37: Apartment rental price by category, Q1/2012-Q1/2018
Figure 38: Apartment rental price and rental capacity, Q1/2015-Q1/2018
Figure 39: Total supply of apartments for rent, Q1/2015-Q1/2018
Figure 40: Apartment rental prices by class, Q4/2016-Q1/2018
Figure 41: Housing supply in Hanoi, 2008-Q1/2018
Figure 42: Price fluctuation of apartment for sale, Q1/2008 – Q1/2018
Figure 43: New supply and number of apartments sold, 2010-Q1/2018
Figure 44: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q1/2018
Figure 45: High-end apartment segment’s price, 2010-Q1/2018
Figure 46: Structure of buying houses by purpose in HCM, 2016
Figure 47: Total villa/townhouse supply, Q1/2015-Q1/2018
Figure 48: Price fluctuation of villas and townhouses, Q1/2014-Q1/2018
Figure 49: Total villa/townhouse supply, Q1/2014-Q1/2018
Figure 50: Hotel total supply, Q1/2016-Q1/2018
Figure 51: Rental price and capacity, Q1/2016-Q1/2018
Figure 52: Hotel total supply, Q1/2015 – Q1/2018
Figure 53: Rental price and capacity, Q1/2018
Figure 54: Average rental price and capacity, Q1/2016-Q1/2018
Figure 55: Total Supply by Region, Q1/2018
Figure 56: Rental price by area, Q1/2018
Figure 57: Total supply and vacancy rate of Northern Industrial Zone, Q1/2018
Figure 58: Average rental price for the Northern Industrial Zone, Q1/2018
Figure 59: Total supply and vacancy rate, Q1/2018
Figure 60: Rental price by area, Q1/2018
Figure 61: Vacancy rate, 2011-Q1/2018
Figure 62: Rental price for factories available, 2011 -Q1/2018
Figure 63: Rental price for land by area, 2011 – Q1/2018
Figure 64: Infrastructure Rank by Country, 2017
Figure 65: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 66: Investment capital for various types of transportation, 2010 – 2015
Figure 67: LPI of Vietnam, 2007 – 2016
Figure 68: LPI Rank of ASEAN Countries, 2007 – 2016
Figure 69: LPI Rank of Vietnam, 2007- 2016
Figure 70: Proportion of power generation by supplier, 2016
Figure 71: Total electricity supply, 2010 – 3M/2018e
Figure 72: Structure of electricity production, 2017
Figure 73: Power loss, 2010 – 2017e
Figure 74: Rate of Electricity losses in the supply chain, 2010 – 2017
Figure 75: Structure of Investment Costs for Infrastructure Development in GDP, 1995 – 2013
Figure 76: Urbanization levels, 2010 – 2017
Figure 77: Disposable income and household spending, 2008 – 2017f
Figure 78: Real estate outstanding credit, 2012-2017
Figure 79: Structure of real estate outstanding credit, 2017
Figure 80: Structure of population by class (expenditure), 2013 – 2020f
Figure 81: Net revenue growth, 2015-2016
Figure 82: Gross profit growth, 2016
Figure 83: Solvency, 2016
Figure 84: Accounts receivable turnover, 2016
Figure 85: Affordability of enterprises, 2016
Figure 86: Total asset turnover, 2016
Figure 87: Fixed asset turnover, 2016
Figure 88: Administrative expenses, 2016
Figure 89: Interest expenses, 2016
Figure 90: Profit ratio, 2016
List of tables
Table 1: Top 10 construction machine manufacturers worldwide, 2016
Table 2: World’s top 10 largest construction contractors, 2016
Table 3: Construction cost in some major cities in ASEAN region, Q4 / 2016

Table 5: Typical projects are scheduled for 2018-2020
Table 6: Typical projects are scheduled to be completed, 2018
Table 7: Typical projects under construction, 2018
Table 8: Typical Serviced Apartments in Hanoi, 2018
Table 9: Typical projects under construction in 2018
Table 10: Typical projects are scheduled to be completed in the next time
Table 11: Lending rates of commercial banks, Q1/2018
Table 12: Typical projects are open for sale
Table 13: Typical projects in the period 2018-2020
Table 14: Typical projects in HCM City in the period 2018-2025
Table 15: Quality of Infrastructure in Vietnam, 2011-2017
Table 16: Roadway infrastructure, 2017
Table 17: Major seaports in Vietnam
Table 18: Ability of receiving ships of Vietnamese ports
Table 19: Operational capacity of some major airways, 2016e
Table 20: Revenue and profit of AVC, 2017
Table 21: Electricity transmission and distribution network length, 2011 – 2017
Table 22: Electricity loss rate in some countries, 2011-2014
Table 23: Results of reducing Electricity losses in 2017 – Plan 2018
Table 24: The largest cities of Vietnam Estimated in 2017
Table 25: Top construction enterprises having the largest revenue in 2016