Construction Industry in Vietnam: Overview 2024

Vietnam’s construction industry has seen substantial growth in recent years, driven by robust economic development and significant government investment in infrastructure projects. The sector is highly competitive, featuring both domestic and international players. These companies are actively involved in various large-scale projects across the country, including residential, commercial, and industrial developments.

The construction industry in Vietnam is projected to expand steadily, supported by continued investments in transport infrastructure and energy projects. Foreign direct investment is also playing a crucial role in advancing industrial construction, particularly in the development of production facilities for sectors like automotive and electronics. The market is expected to maintain a positive trajectory, with key opportunities in both public and private sectors over the next decade.

Vietnam’s construction industry in numbers

Vietnam’s construction industry has shown steady growth, supported by government investment in infrastructure, rapid urbanisation, and a booming real estate sector. The industry is also witnessing an increasing inflow of foreign direct investment, especially in residential and industrial projects, as Vietnam becomes a regional manufacturing hub.

Vietnam’s construction market

The Vietnam construction market is projected to grow significantly, with an estimated market size of US$69.2 billion in 2024, reaching US$102.2 billion by 2028. This represents a compound annual growth rate of 8.10 percent over the forecast period, according to data collated by Mordor Intelligence. 

This growth is fueled by the country’s robust economic development, increased urbanisation, and substantial government investments in infrastructure projects.

Revenue, key listed Vietnam construction firms, US$millions, annual

Revenue, key listed Vietnam construction firms, US$millions, by quarter

Foreign direct investment in Vietnam’s construction industry

In October, Vietnam’s construction sector experienced a notable disparity in foreign direct investment metrics, according to Ministry of Planning and Investment data. The number of new projects rose by 16.67 percent from six in September to seven in October. However, registered capital in the sector saw a sharp decline, dropping 97.88 percent from September’s US$517.55 million to just US$10.98 million in October (although this was more in line with the average for the year with September seemingly the anomaly).

Year-to-date, the construction sector has attracted 47 projects with a cumulative registered capital of US$597.67 million.

Key construction firms in Vietnam

Domestics construction firms in Vietnam

Key domestic construction firms in Vietnam include several well-established companies that play a significant role in the sector.

Thai Holdings

Headquartered in Hanoi, Vietnam, Thai Holdings is a diversified conglomerate involved in construction, real estate, and energy. The company focuses on developing large-scale infrastructure projects throughout the country.

CII Bridges & Roads Investment

Based in Ho Chi Minh City, CII Bridges & Roads Investment specialises in infrastructure development, particularly in the construction of toll roads and bridges, playing a significant role in enhancing Vietnam’s transportation network.

PC1 Group

PC1 Group, with its head office in Hanoi, operates in the construction and energy sectors, primarily focusing on power infrastructure. The company is actively involved in building electrical and renewable energy projects across Vietnam.

Song Da Corporation

Headquartered in Hanoi, Song Da Corporation is a state-owned enterprise recognised for its expertise in hydropower construction and large-scale infrastructure projects, contributing substantially to the development of Vietnam’s hydropower sector.

Coteccons Construction

Coteccons Construction, located in Ho Chi Minh City, is one of Vietnam’s leading construction firms. The company is known for its work on high-rise and commercial building projects, as well as its contributions to modern urban developments.

SCG Construction Group

With its main office in Bangkok, Thailand, and a significant presence in Ho Chi Minh City, SCG Construction Group operates in Vietnam through construction materials and project development, focusing on residential and commercial construction projects.

Bamboo Capital Group

Headquartered in Ho Chi Minh City, Bamboo Capital Group is a diversified firm involved in construction, renewable energy, and real estate. The company focuses on large-scale infrastructure projects with an emphasis on sustainable development.

Construction Corporation No 1

Based in Hanoi, Construction Corporation No 1 is a long-standing Vietnamese construction company with expertise in residential, industrial, and infrastructure projects, playing a key role in the country’s development.

Deo Ca Traffic Infrastructure Investment

Deo Ca Traffic Infrastructure Investment, headquartered in Ho Chi Minh City, specialises in transportation infrastructure, particularly tunnels and highways, helping to improve connectivity in Vietnam’s mountainous and remote areas.

Ho Chi Minh City Infrastructure Investment (CII)

Located in Ho Chi Minh City, Ho Chi Minh City Infrastructure Investment is heavily involved in urban infrastructure projects within the city, including toll roads, water supply, and urban development initiatives to support its rapid growth.

Key foreign construction firms in Vietnam

These foreign firms have been driving Vietnam’s construction and infrastructure development, contributing expertise, technology, and investment that support the country’s rapid growth​

GS Engineering & Construction (South Korea)

GS Engineering & Construction is a major player in Vietnam’s construction sector, involved in various large-scale infrastructure projects, including highways and urban transit systems. The company’s expertise in civil engineering and construction makes it a significant contributor to Vietnam’s development plans.

Hyundai Engineering & Construction (South Korea)

Hyundai Engineering & Construction is active in the Vietnamese market, focusing on projects such as power plants and large infrastructure developments. Their involvement in complex projects highlights their role in enhancing Vietnam’s infrastructure capabilities​.

Taisei Corporation (Japan)

Taisei Corporation is engaged in several high-profile projects, including the construction of modern urban buildings and commercial complexes. The company’s contributions are vital in meeting the growing demand for modern infrastructure in Vietnam’s urban areas.

Kajima Corporation (Japan)

Kajima Corporation is involved in the construction of industrial parks and large-scale commercial developments. Their presence in Vietnam reflects the country’s increasing attractiveness for foreign industrial investments​.

Bouygues Construction (France)

Bouygues Construction has been active in Vietnam’s transport and urban development projects, contributing to the construction of roads and bridges. Their expertise in sustainable construction practices aligns well with Vietnam’s push for green development​.

Siemens (Germany)

Siemens plays a key role in Vietnam’s renewable energy and transportation sectors. The company is involved in several projects aimed at modernising the country’s power grid and developing urban transportation systems​.

Fluor Corporation (USA)

Fluor Corporation is involved in industrial construction, including manufacturing plants and energy facilities. Their operations in Vietnam focus on enhancing the country’s industrial infrastructure and meeting the demands of a growing economy.

Chiyoda Corporation (Japan)

Chiyoda Corporation is a prominent player in Vietnam’s oil and gas sector, working on refining and petrochemical projects. Their expertise in this field supports Vietnam’s ambitions to expand its energy sector and reduce reliance on imported fuels​.

Key challenges for Vietnam’s construction industry

The construction industry in Vietnam faces several key challenges:

Regulatory and Bureaucratic Hurdles

Complex regulations and bureaucratic procedures pose significant challenges for the construction sector. Delays in obtaining permits and navigating legal constraints can hinder project timelines and increase costs. Streamlining these processes and improving transparency could help alleviate these issues and promote smoother operations for both local and foreign companies.

Skilled Labour Shortage

The industry struggles with a shortage of skilled labour, which impacts project efficiency and quality. The demand for specialised workers often outpaces supply, leading to wage inflation and project delays. Addressing this challenge requires investment in vocational training and collaboration between the government and private sector to build a more skilled workforce.

Material Price Fluctuations

Fluctuations in the prices of construction materials, such as steel and cement, create uncertainty and financial pressure for construction companies. These price changes can affect project budgets and profitability, making cost management a critical aspect of successful project execution.

These challenges highlight the need for reforms and strategic investments to ensure the sustainable growth of Vietnam’s construction industry.

See also: Cement Industry in Vietnam

What’s next?

The outlook for Vietnam’s construction industry is marked by both opportunities and challenges. On one hand, the a push for infrastructure development and urban expansion is expected to drive demand for construction projects across the country. However, there are notable constraints that could hinder the sector’s progress.

Overall, while the Vietnamese construction industry has the potential for growth, its future will depend heavily on addressing these structural issues and creating a more favourable environment for both local and foreign investors​.

With this in mind, foreign construction firms considering doing business in Vietnam should make sure to keep up with the latest updates in the industry by subscribing to the-shiv.