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. Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy.
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 supply of industrial parks in the first 9 months of 2018 did not change in both Hanoi and HCMC. The occupancy rates and rental rates have been improved thanks to stable supply.
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,..
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Economic agreements
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
2.1.3 Current state of world construction industry
2.2 Vietnam construction market
2.2.1 Vietnam construction industry overview
2.2.2 Input factors
2.2.3 Construction activities
2.2.4 Construction output
184.108.40.206 Residential Houses
220.127.116.11 Non-residential Houses
18.104.22.168 Dedicated construction
2.3 Industry risk
2.4 Driving forces of the industry
2.5 Planning and Forecast
3. Enterprise analysis
3.1 Overview of enterprises
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
Construction Corporation No.1 Joint Stock Company
Delta Civil And Industrial Construction Company Ltd
Song Da Corporation
Constructuon Joint Stock company 47
Figure 1: GDP growth by quarter, 2015 – Q3/2018
Table 1: Top 10 construction machine manufacturers worldwide, 2017