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Synopsis
In real terms, the Vietnamese construction industry’s output value recorded a compound annual growth rate (CAGR) of 5.27% during the review period (2010–2014).

There was a marked slowdown in 2011, but the general growth trend during the review period was supported by socio-political stability, improving investor confidence, a qualified workforce and improving global economic conditions. Public and private sector investments under ‘Vision 2030’ also supported the construction industry during the review period.

The Vietnamese construction industry is expected to be supported by the government’s investments in infrastructure and housing construction projects over the forecast period (2015–2019).

The government aims to improve its transport network, tourism infrastructure and modernize energy delivery by increasing the volume of renewable schemes. Government efforts to address the country’s housing shortage will also help the industry grow over the next five years, and it is consequently expected to register a CAGR of 6.53%.

Summary
Timetric’s Construction in Vietnam – Key Trends and Opportunities to 2019 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 type of construction activity

- Analysis of equipment, material and service costs for each project type in Vietnam

- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in Vietnamese construction industry

- Profiles of the leading operators in the Vietnamese construction industry.

- Data highlights of the largest construction projects in Vietnam

Scope
This report provides a comprehensive analysis of the construction industry in Vietnam. It provides:

- Historical (2010–2014) and forecast (2015–2019) valuations of the construction industry in Vietnam using construction output and value-add methods

- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

- Analysis of key construction industry issues, including regulation, cost management, funding and pricing

- Detailed profiles of the leading construction companies in Vietnam

Reasons To Buy
- Identify and evaluate market opportunities using Timetric'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 business strategies using Timetric's critical and actionable insight

- Assess business risks, including cost, regulatory and competitive pressures

- Evaluate competitive risk and success factors

Key Highlights
- In 2014, the government signed a directive under the housing development program in Hanoi during 2012–2020, with the vision until 2030. This directive will increase the number of social housing projects in Hanoi by focusing on the construction of residential areas and urban centers in the outskirts of the city. The renovation and reconstruction of downgraded residential buildings and houses will also be included in the program. The plan sets the target to raise the average housing area from 16.7m2 per person in 2009 to 23.1m2 per person by 2015, and 26.3m2 per person by 2020. Such government initiatives will support the growth of the residential construction market over the forecast period.

- To stimulate the sluggish residential market, in July 2013 the government allocated VND30.0 trillion (US$1.4 billion) in bank loan packages for low-income families and housing projects. The home loans are offered for up to 10 years, at an annual interest rate of 6.0%. In a bid to attract more consumers, however, the government reduced the annual interest rate to 5.0% in 2014. In July 2015, the government introduced a new housing law and law on real estate business. The new housing law opens the door for foreign entities and individuals to invest in residential properties. Under the law on real estate business, the government allows foreign entities and individuals to own offices and factories, and allows foreign-invested enterprises to lease office buildings and facilities for commercial purposes. Government efforts to increase the demand for housing property will support the growth of the residential construction market over the forecast period.

- To support the housing market, the Ministry of Finance announced that it would reduce the tax burden applied on the sale and lease of apartments and houses in 2013. Under this, a 50.0% reduction on value added tax (VAT) was implemented for the sale or lease of commercial housing. The new decree came into effect from the end of 2013, and lowered VAT from 10.0% in 2012 to 5.0%. Commercial housing units under 70m2, which value less than VND15.0 million (US$705.0) per square meter, will be qualified for VAT reduction. The introduction of this new decree helps in making housing affordable to low income families and thereby reduces the stock of unoccupied space. According to Ministry of Construction (MOC), the value of inventories at the end of the second quarter was 50% of the value at the beginning of the Therefore, growth in the residential construction market will be driven by the increasing demand for residential property over the forecast period.

- The Vietnamese government allocated VND1.9 quadrillion (US$94.2 billion) for 2011'2030, to develop the country’s tourism sector. Tourism development plans include the modernization of tourism infrastructure in rural and border areas, and islands. In order to provide a diverse range of leisure facilities to meet the lifestyle needs of people in the region Vinpearl, Joint Stock Company is planning to construct a resort in Lien Chieu, Da Nang. This project is expected to be completed by 2020, with investment of VND107.3 trillion (US$5.0 billion). Under public-private partnership with an investment of VND85.9 trillion (US$4.0 billion), the Quang Ninh Province (QNP) is planning to construct an integrated casino and resort complex on a 1,800ha area at the Van Don Economic Zone, Van Yen Commune, Van Don District, Quang Ninh. This project is expected to be completed by 2020. Over the forecast period, growth in the leisure and hospitality category will be driven by government efforts, along with public and private sector investments, to make tourism the country’s leading sector by 2020.

- In 2011, the Ministry of Industry and Trade (MOIT) approved a Power Master Plan-7 (2011'2020). The plan aims to increase the output of imported and produced electricity from 194'210 billion kWh in 2015 to 695'834 billion kWh by 2030, as well as increase the share of renewable energy from 3.5% of the total electricity generated in 2010 to 4.5% in 2020 (and to 6% in 2030), establish the first nuclear power plant by 2020 and increase the capacity of nuclear power to 1,000MW in 2020, to 6,000MW by 2025 and 10,700MW by 2030. A total investment of VND929.7 trillion (US$48.8 billion) will be required up until 2020, and VND1.4 quadrillion (US$75.0 billion) for 2021–2030. These investments are expected to support construction activity in the energy and utilities construction market over the forecast period.

Table Of Contents

Construction in Vietnam - Key Trends and Opportunities to 2019
Table of Contents
1 Executive Summary
2 Industry Outlook
2.1 Commercial Construction
2.2 Industrial Construction
2.3 Infrastructure Construction
2.4 Energy and Utilities Construction
2.5 Institutional Construction
2.6 Residential Construction
3 Key Issues and Developments
4 Market Data Analysis
4.1 Construction Output and Value Add
4.1.1 Construction output by project type
4.1.2 Construction output by cost type
4.1.3 Construction output by activity type
4.1.4 Construction value add by project type
4.2 Commercial Construction
4.2.1 Commercial construction output by project type
4.2.2 Commercial construction output by cost type
4.2.3 Commercial construction output by activity type
4.2.4 Commercial construction value add by project type
4.3 Industrial Construction
4.3.1 Industrial construction output by project type
4.3.2 Industrial construction output by cost type
4.3.3 Industrial construction output by activity type
4.3.4 Industrial construction value add by project type
4.4 Infrastructure Construction
4.4.1 Infrastructure construction output by project type
4.4.2 Infrastructure construction output by cost type
4.4.3 Infrastructure construction output by activity type
4.4.4 Infrastructure construction value add by project type
4.5 Energy and Utilities Construction
4.5.1 Energy and utilities construction output by project type
4.5.2 Energy and utilities construction output by cost type
4.5.3 Energy and utilities construction output by activity type
4.5.4 Energy and utilities construction value add by project type
4.6 Institutional Construction
4.6.1 Institutional construction output by project type
4.6.2 Institutional construction output by cost type
4.6.3 Institutional construction output by activity type
4.6.4 Institutional construction value add by project type
4.7 Residential Construction
4.7.1 Residential construction output by project type
4.7.2 Residential construction output by cost type
4.7.3 Residential construction output by activity type
4.7.4 Residential construction value add by project type
5 Company Profile: PetroVietnam Construction Joint Stock Corporation
5.1 PetroVietnam Construction Joint Stock Corporation - Company Overview
5.2 PetroVietnam Construction Joint Stock Corporation - Main Products and Services
5.3 PetroVietnam Construction Joint Stock Corporation - History
5.4 PetroVietnam Construction Joint Stock Corporation - Company Information
5.4.1 PetroVietnam Construction Joint Stock Corporation - key competitors
5.4.2 PetroVietnam Construction Joint Stock Corporation - key employees
6 Company Profile: Hoa Binh Construction and Real Estate Corporation
6.1 Hoa Binh Construction and Real Estate Corporation - Company Overview
6.2 Hoa Binh Construction and Real Estate Corporation - Main Products and Services
6.3 Hoa Binh Construction and Real Estate Corporation - History
6.4 Hoa Binh Construction and Real Estate Corporation - Company Information
6.4.1 Hoa Binh Construction and Real Estate Corporation - key competitors
6.4.2 Hoa Binh Construction and Real Estate Corporation - key employees
7 Company Profile: Construction and Materials Trading Joint Stock Company
7.1 Construction and Materials Trading Joint Stock Company - Company Overview
7.2 Construction and Materials Trading Joint Stock Company - Main Products and Services
7.3 Construction and Materials Trading Joint Stock Company - History
7.4 Construction and Materials Trading Joint Stock Company - Company Information
7.4.1 Construction and Materials Trading Joint Stock Company - key competitors
7.4.2 Construction and Materials Trading Joint Stock Company - key employees
8 Company Profile: Hongha Vietnam Joint Stock Company
8.1 Hongha Vietnam Joint Stock Company - Company Overview
8.2 Hongha Vietnam Joint Stock Company - Main Services
8.3 Hongha Vietnam Joint Stock Company - Company Information
8.3.1 Hongha Vietnam Joint Stock Company - key competitors
8.3.2 Hongha Vietnam Joint Stock Company - key employees
9 Company Profile: Cotec Construction Joint Stock Company
9.1 Cotec Construction Joint Stock Company - Company Overview
9.2 Cotec Construction Joint Stock Company - Main Services
9.3 Cotec Construction Joint Stock Company - History
9.4 Cotec Construction Joint Stock Company - Company Information
9.4.1 Cotec Construction Joint Stock Company - key competitors
9.4.2 Cotec Construction Joint Stock Company - key employees
10 Appendix
10.1 What is this Report About?
10.2 Definitions
10.3 Methodology
10.4 Contact Timetric
10.5 About Timetric
10.6 Timetric's Services
10.7 Disclaimer

List of Tables
Table 1: Vietnamese Construction Output by Project Type (VND Million), 2010-2014
Table 2: Vietnamese Construction Output by Project Type (VND Million), 2014-2019
Table 3: Vietnamese Construction Output by Cost Type (VND Million), 2010-2014
Table 4: Vietnamese Construction Output by Cost Type (VND Million), 2014-2019
Table 5: Vietnamese Construction Output by Activity Type (VND Million), 2010-2014
Table 6: Vietnamese Construction Output by Activity Type (VND Million), 2014-2019
Table 7: Vietnamese Construction Value Add by Project Type (VND Million), 2010-2014
Table 8: Vietnamese Construction Value Add by Project Type (VND Million), 2014-2019
Table 9: Vietnamese Commercial Construction Output by Project Type (VND Million), 2010-2014
Table 10: Vietnamese Commercial Construction Output by Project Type (VND Million), 2014-2019
Table 11: Vietnamese Commercial Construction Output by Cost Type (VND Million), 2010-2014
Table 12: Vietnamese Commercial Construction Output by Cost Type (VND Million), 2014-2019
Table 13: Vietnamese Commercial Construction Output by Activity Type (VND Million), 2010-2014
Table 14: Vietnamese Commercial Construction Output by Activity Type (VND Million), 2014-2019
Table 15: Vietnamese Commercial Construction Value Add by Project Type (VND Million), 2010-2014
Table 16: Vietnamese Commercial Construction Value Add by Project Type (VND Million), 2014-2019
Table 17: Vietnamese Industrial Construction Output by Project Type (VND Million), 2010-2014
Table 18: Vietnamese Industrial Construction Output by Project Type (VND Million), 2014-2019
Table 19: Vietnamese Industrial Construction Output by Cost Type (VND Million), 2010-2014
Table 20: Vietnamese Industrial Construction Output by Cost Type (VND Million), 2014-2019
Table 21: Vietnamese Industrial Construction Output by Activity Type (VND Million), 2010-2014
Table 22: Vietnamese Industrial Construction Output by Activity Type (VND Million), 2014-2019
Table 23: Vietnamese Industrial Construction Value Add by Project Type (VND Million), 2010-2014
Table 24: Vietnamese Industrial Construction Value Add by Project Type (VND Million), 2014-2019
Table 25: Vietnamese Infrastructure Construction Output by Project Type (VND Million), 2010-2014
Table 26: Vietnamese Infrastructure Construction Output by Project Type (VND Million), 2014-2019
Table 27: Vietnamese Infrastructure Construction Output by Cost Type (VND Million), 2010-2014
Table 28: Vietnamese Infrastructure Construction Output by Cost Type (VND Million), 2014-2019
Table 29: Vietnamese Infrastructure Construction Output by Activity Type (VND Million), 2010-2014
Table 30: Vietnamese Infrastructure Construction Output by Activity Type (VND Million), 2014-2019
Table 31: Vietnamese Infrastructure Construction Value Add by Project Type (VND Million), 2010-2014
Table 32: Vietnamese Infrastructure Construction Value Add by Project Type (VND Million), 2014-2019
Table 33: Vietnamese Energy and Utilities Construction Output by Project Type (VND Million), 2010-2014
Table 34: Vietnamese Energy and Utilities Construction Output by Project Type (VND Million), 2014-2019
Table 35: Vietnamese Energy and Utilities Construction Output by Cost Type (VND Million), 2010-2014
Table 36: Vietnamese Energy and Utilities Construction Output by Cost Type (VND Million), 2014-2019
Table 37: Vietnamese Energy and Utilities Construction Output by Activity Type (VND Million), 2010-2014
Table 38: Vietnamese Energy and Utilities Construction Output by Activity Type (VND Million), 2014-2019
Table 39: Vietnamese Energy and Utilities Construction Value Add by Project Type (VND Million), 2010-2014
Table 40: Vietnamese Energy and Utilities Construction Value Add by Project Type (VND Million), 2014-2019
Table 41: Vietnamese Institutional Construction Output by Project Type (VND Million), 2010-2014
Table 42: Vietnamese Institutional Construction Output by Project Type (VND Million), 2014-2019
Table 43: Vietnamese Institutional Construction Output by Cost Type (VND Million), 2010-2014
Table 44: Vietnamese Institutional Construction Output by Cost Type (VND Million), 2014-2019
Table 45: Vietnamese Institutional Construction Output by Activity Type (VND Million), 2010-2014
Table 46: Vietnamese Institutional Construction Output by Activity Type (VND Million), 2014-2019
Table 47: Vietnamese Institutional Construction Value Add by Project Type (VND Million), 2010-2014
Table 48: Vietnamese Institutional Construction Value Add by Project Type (VND Million), 2014-2019
Table 49: Vietnamese Residential Construction Output by Project Type (VND Million), 2010-2014
Table 50: Vietnamese Residential Construction Output by Project Type (VND Million), 2014-2019
Table 51: Vietnamese Residential Construction Output by Cost Type (VND Million), 2010-2014
Table 52: Vietnamese Residential Construction Output by Cost Type (VND Million), 2014-2019
Table 53: Vietnamese Residential Construction Output by Activity Type (VND Million), 2010-2014
Table 54: Vietnamese Residential Construction Output by Activity Type (VND Million), 2014-2019
Table 55: Vietnamese Residential Construction Value Add by Project Type (VND Million), 2010-2014
Table 56: Vietnamese Residential Construction Value Add by Project Type (VND Million), 2014-2019
Table 57: PetroVietnam Construction Joint Stock Corporation, Key Facts
Table 58: PetroVietnam Construction Joint Stock Corporation, Main Products and Services
Table 59: PetroVietnam Construction Joint Stock Corporation, History
Table 60: PetroVietnam Construction Joint Stock Corporation, Key Employees
Table 61: Hoa Binh Construction and Real Estate Corporation, Key Facts
Table 62: Hoa Binh Construction and Real Estate Corporation, Main Products and Services
Table 63: Hoa Binh Construction and Real Estate Corporation, History
Table 64: Hoa Binh Construction and Real Estate Corporation, Key Employees
Table 65: Construction and Materials Trading Joint Stock Company, Key Facts
Table 66: Construction and Materials Trading Joint Stock Company, Main Products and Services
Table 67: Construction and Materials Trading Joint Stock Company, History
Table 68: Construction and Materials Trading Joint Stock Company, Key Employees
Table 69: Hongha Vietnam Joint Stock Company, Key Facts
Table 70: Hongha Vietnam Joint Stock Company, Main Services
Table 71: Hongha Vietnam Joint Stock Company, Key Employees
Table 72: Cotec Construction Joint Stock Company, Key Facts
Table 73: Cotec Construction Joint Stock Company, Main Services
Table 74: Cotec Construction Joint Stock Company, History
Table 75: Cotec Construction Joint Stock Company, Key Employees
Table 76: Timetric Construction Market Definitions

List of Figures
Figure 1: Vietnamese Construction Output (Real US$ 2010, Million), 2010-2019
Figure 2: Growth Matrix for Construction Output in Vietnam (US$ Million), 2010-2019
Figure 3: Vietnamese Construction Output by Project Type (VND Million), 2010-2019
Figure 4: Vietnamese Construction Output by Cost Type (VND Million), 2010-2019
Figure 5: Vietnamese Construction Output by Activity Type (VND Million), 2010-2019
Figure 6: Vietnamese Construction Value Add by Project Type (VND Million), 2010-2019
Figure 7: Vietnamese Commercial Construction Output by Project Type (VND Million), 2010-2019
Figure 8: Vietnamese Commercial Construction Output by Cost Type (VND Million), 2010-2019
Figure 9: Vietnamese Commercial Construction Output by Activity Type (VND Million), 2010-2019
Figure 10: Vietnamese Commercial Construction Value Add by Project Type (VND Million), 2010-2019
Figure 11: Vietnamese Industrial Construction Output by Project Type (VND Million), 2010-2019
Figure 12: Vietnamese Industrial Construction Output by Cost Type (VND Million), 2010-2019
Figure 13: Vietnamese Industrial Construction Output by Activity Type (VND Million), 2010-2019
Figure 14: Vietnamese Industrial Construction Value Add by Project Type (VND Million), 2010-2019
Figure 15: Vietnamese Infrastructure Construction Output by Project Type (VND Million), 2010-2019
Figure 16: Vietnamese Infrastructure Construction Output by Cost Type (VND Million), 2010-2019
Figure 17: Vietnamese Infrastructure Construction Output by Activity Type (VND Million), 2010-2019
Figure 18: Vietnamese Infrastructure Construction Value Add by Project Type (VND Million), 2010-2019
Figure 19: Vietnamese Energy and Utilities Construction Output by Project Type (VND Million), 2010-2019
Figure 20: Vietnamese Energy and Utilities Construction Output by Cost Type (VND Million), 2010-2019
Figure 21: Vietnamese Energy and Utilities Construction Output by Activity Type (VND Million), 2010-2019
Figure 22: Vietnamese Energy and Utilities Construction Value Add by Project Type (VND Million), 2010-2019
Figure 23: Vietnamese Institutional Construction Output by Project Type (VND Million), 2010-2019
Figure 24: Vietnamese Institutional Construction Output by Cost Type (VND Million), 2010-2019
Figure 25: Vietnamese Institutional Construction Output by Activity Type (VND Million), 2010-2019
Figure 26: Vietnamese Institutional Construction Value Add by Project Type (VND Million), 2010-2019
Figure 27: Vietnamese Residential Construction Output by Project Type (VND Million), 2010-2019
Figure 28: Vietnamese Residential Construction Output by Cost Type (VND Million), 2010-2019
Figure 29: Vietnamese Residential Construction Output by Activity Type (VND Million), 2010-2019
Figure 30: Vietnamese Residential Construction Value Add by Project Type (VND Million), 2010-2019

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