In January, Vietnam’s construction sector registered a total of US$10.57 million in new foreign direct investment (FDI) across five new projects, according to data from Vietnam’s Ministry of Planning and Investment. This represents a decrease of US$3.5 million compared to December, which saw US$14.0 million in registered capital. However, the number of new projects increased from two in December.
The sector accounted for 0.24 percent of total FDI in January, up from 0.20 percent in December.
Vietnam’s construction industry has been a major driver of the country’s rapid economic growth, supported by strong demand for infrastructure, residential, commercial, and industrial development. The sector is vital to Vietnam’s industrialisation and urbanisation, with large-scale projects being undertaken in both urban and rural areas. In recent years, there has been a surge in residential construction, especially in cities like Hanoi and Ho Chi Minh City, where the growing middle class demands more housing and modern amenities. Additionally, commercial and industrial construction has flourished, driven by the rise of retail, manufacturing, and logistics sectors.
Foreign direct investment (FDI) has played a significant role in the construction industry, with international firms contributing expertise and capital for high-end commercial developments, infrastructure projects, and industrial facilities. Major global players in construction and engineering, such as Hyundai Engineering, Lotte, and Bouygues, have expanded their presence in Vietnam, participating in large-scale infrastructure projects like highways, bridges, and urban transportation systems. The government has been proactive in supporting the sector through policies that encourage infrastructure development, urban planning, and public-private partnerships (PPPs).
The construction industry faces several challenges, including rising material costs, a shortage of skilled labour, and regulatory complexities. Environmental sustainability is also becoming a key focus, with increasing demand for green building materials and energy-efficient designs.
See also: Construction Industry in Vietnam