Construction in Vietnam - Key Trends and Opportunities to 2018

Published: Aug, 2014 | Pages: 67 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)


Synopsis
This report provides detailed market analysis, information and insights into Vietnamese construction industry including:
Vietnamese construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within Vietnam
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in Vietnamese construction industry
Analyzing the profiles of the leading operators in Vietnamese construction industry.
Data highlights of the largest construction projects in Vietnam 

Summary
The Vietnamese construction industry recorded a compound annual growth rate (CAGR) of 16.12% during the review period (2009-2013). However, industry growth slowed from 19.7% in 2011 to 7.0% in 2013, due to a slump in the property market, a banking system characterized by non-performing loans (NPLs) and a sluggish real estate sector. Nevertheless, industry outlook is favorable, due to the government's focus industrial and residential construction. Expansion in the tourism and retail sectors, coupled with investments in infrastructure projects, will support industry growth. The industry's output is therefore expected to record a nominal CAGR of 11.43% over the forecast period (2014?2018). 
Scope
This report provides a comprehensive analysis of the construction industry in Vietnam. It provides:
Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in Vietnam using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, 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 
Reason To Buy
 Identify and evaluate market opportunities using our 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
 The Vietnamese construction industry delivered a strong growth rate during the review period, due to Vietnam's stable economic conditions and despite a slowdown between 2011 and 2013, due to a slump in the property market. In nominal terms, the total construction value add in Vietnam registered a nominal CAGR of 14.85% during the review period. In an attempt to boost the struggling property market, the central bank and five state-run banks announced a VND70 trillion (US$3.3 billion) loan package in 2014, to allow investors, developers and suppliers to lower prices and cut costs to increase sales. According to the Foreign Investment Agency (FIA), in the first half of 2014, the industry ranked as the second-largest recipient of foreign direct investment (FDI) with total capital of VND10.0 trillion (US$465.4 million); real estate attracted 16 projects and a capital of VND14.9 trillion (US$692.3 million). Government investment strategies for the development of the industrial, tourism and infrastructure categories will also benefit the industry over the forecast period. The industry's value add is expected to register a forecast-period CAGR of 11.59%. 
The Ministry of Industry and Trade (MOIT) approved a Renewable Energy Development Plan for the Northern Plains and Midlands until 2020. The plan includes energy production of 325.7MW through renewable sources over 2013?2020 and a further 1.2GW over 2020?2030. An investment of VND17.0 billion (US$78.9 billion) is required until 2020 and VND31.6 billion (US$146.8 billion) will be needed for the 2020?2030 period. Such initiatives will boost growth in energy infrastructure construction over the forecast period. 
Vietnam's rapid economic growth increased its demand for fuel. According to the Ministry of Industry and Trade (MOIT), in 2013, the demand for oil products was estimated to be 17 million tons, of which 60% was met by imported oil products. In order to meet the rising demand for fuel and reduce its reliance on imported fuel, the country is focusing on improving its refining capacity. In 2013, Vietnam signed a contract with companies from Japan and Kuwait, to build an oil refinery facility valued at VND189.1 trillion (US$9 billion) in Thanh Hoa province. It is likely to be operational by 2017. Furthermore, in 2014, the government announced a VND581.4 trillion (US$27 billion) refinery project at Binh Dinh province with an annual capacity of 30 million tons. The project will receive investment from the Petroleum Authority of Thailand (PTT), scheduled to start construction in 2016 for commencement in 2020.  
In order to boost the commercial housing market, in 2013 the Ministry of Finance announced a reduction in tax burdens applied to the sale and leasing of apartments and houses. Under this, 50% reduction on VAT was implemented for sale or lease of commercial housing. The new decree came into effect from the end of November 2013 and will lower the VAT from 10% to 5%. Commercial housing units under 70m2, valuing less than VND15 million (US$705) per square meter will qualify for the VAT reduction. The introduction of this new decree will make housing affordable to low-income families and reduce the stock of the unoccupied space. According to the Ministry of Construction (MOC), real estate inventories declined by 20% in the first half of 2013. Over the forecast period, growth in the residential construction market will be driven by an increase in the demand of residential properties.

 1 Executive Summary
2 Market Overview
2.1 Key Trends and Issues
2.2 Benchmarking by Market Size and Growth
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights
6 Institutiol Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights
8 Company Profile: Vietm Construction and Import ? Export Joint Stock Corporation
8.1 Vietm Construction and Import ? Export Joint Stock Corporation - Company Overview
8.2 Vietm Construction and Import ? Export Joint Stock Corporation - Business Description
8.3 Vietm Construction and Import ? Export Joint Stock Corporation - Main Products and Services
8.4 Vietm Construction and Import ? Export Joint Stock Corporation - History
8.5 Vietm Construction and Import ? Export Joint Stock Corporation - Company Information
8.5.1 Vietm Construction and Import ? Export Joint Stock Corporation - key competitors
8.5.2 Vietm Construction and Import ? Export Joint Stock Corporation - key employees
9 Company Profile: Petrovietm Construction Joint Stock Corporation
9.1 Petrovietm Construction Joint Stock Corporation - Company Overview
9.2 Petrovietm Construction Joint Stock Corporation - Main Products and Services
9.3 Petrovietm Construction Joint Stock Corporation - Company Information
9.3.1 Petrovietm Construction Joint Stock Corporation - key competitors
9.3.2 Petrovietm Construction Joint Stock Corporation - key employees
10 Company Profile: Construction and Materials Trading Joint Stock Company
10.1 Construction and Materials Trading Joint Stock Company - Company Overview
10.2 Construction and Materials Trading Joint Stock Company - Main Products and Services
10.3 Construction and Materials Trading Joint Stock Company - Company Information
10.3.1 Construction and Materials Trading Joint Stock Company - key competitors
10.3.2 Construction and Materials Trading Joint Stock Company - key employees
11 Company Profile: ThuDuc Housing Development Corporation
11.1 ThuDuc Housing Development Corporation - Company Overview
11.2 ThuDuc Housing Development Corporation - Main Services
11.3 ThuDuc Housing Development Corporation - Company Information
11.3.1 ThuDuc Housing Development Corporation - key competitors
11.3.2 ThuDuc Housing Development Corporation - key employee
12 Company Profile: Hoa Binh Construction & Real Estate Corporation
12.1 Hoa Binh Construction & Real Estate Corporation - Company Overview
12.2 Hoa Binh Construction & Real Estate Corporation - Main Services
12.3 Hoa Binh Construction & Real Estate Corporation - Company Information
12.3.1 Hoa Binh Construction & Real Estate Corporation - key competitors
12.3.2 Hoa Binh Construction & Real Estate Corporation - key employees
13 Market Data Alysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutiol Construction
13.5.1 Institutiol construction output by project type
13.5.2 Institutiol construction output by cost type
13.5.3 Institutiol construction output by activity type
13.5.4 Institutiol construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type
14 Appendix
14.1 What is this Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric's Services
14.8 Disclaimer


List of Tables
Table 1: Benchmarking with Other Major Construction Industries
Table 2: Commercial Construction Project 1 - Vinpearl JSC - Lang Van Resort Complex - Da ng
Table 3: Commercial Construction Project 2 - PBIL - Cali Beach Tourism Complex - Ninh Thuan
Table 4: Commercial Construction Project 3 - ACDL - Ho Tram Strip Entertainment Complex Development - Ba Ria-Vung Tau
Table 5: Industrial Construction Project 1 - GoV - Vung Ang Economic Zone - Ha Tinh
Table 6: Industrial Construction Project 2 - FPG - Ha-Tinh Steel Complex & Son Duong Port - Vietm
Table 7: Industrial Construction Project 3 - VSC/VCIC - Ha Tinh Integrated Steel Plant - Vietm
Table 8: Infrastructure Construction Project 1 - MoT - North-South Express Railway - Vietm
Table 9: Infrastructure Construction Project 2 - MAUR - Ho Chi Minh City Metro Rail System - Vietm
Table 10: Infrastructure Construction Project 3 - MoT - North to South High Speed Railway Line: Phase II - Vietm
Table 11: Institutiol Construction Project 1 - VAST - Hanoi tiol Space Centre - Vietm
Table 12: Institutiol Construction Project 2 - HLSH - Intertiol Hi-Tech Healthcare Park - Ho Chi Minh City
Table 13: Institutiol Construction Project 3 - SaigonTech - Digital Hospital - Ba Ria-Vung Tau
Table 14: Residential Construction Project 1 - Global Sphere - Hanoi Wall Street Urban Development - Vietm
Table 15: Residential Construction Project 2 - Bitexo - The Manor Central Park - Hanoi
Table 16: Residential Construction Project 3 - MoC - Binh Khanh Ward Resettlement Condos Development - Ho Chi Minh City
Table 17: Vietm Construction and Import ? Export Joint Stock Corporation, Key Facts
Table 18: Vietm Construction and Import ? Export Joint Stock Corporation, Main Products and Services
Table 19: Vietm Construction and Import - Export Joint Stock Corporation, History
Table 20: Vietm Construction and Import ? Export Joint Stock Corporation, Key Employees
Table 21: Petrovietm Construction Joint Stock Corporation, Key Facts
Table 22: Petrovietm Construction Joint Stock Corporation, Main Products and Services
Table 23: Petrovietm Construction Joint Stock Corporation, Key Employees
Table 24: Construction and Materials Trading Joint Stock Company, Key Facts
Table 25: Construction and Materials Trading Joint Stock Company, Main Products and Services
Table 26: Construction and Materials Trading Joint Stock Company, Key Employees
Table 27: ThuDuc Housing Development Corporation, Key Facts
Table 28: ThuDuc Housing Development Corporation, Main Services
Table 29: ThuDuc Housing Development Corporation, Key Employee
Table 30: Hoa Binh Construction & Real Estate Corporation, Key Facts
Table 31: Hoa Binh Construction & Real Estate Corporation, Main Services
Table 32: Hoa Binh Construction & Real Estate Corporation, Key Employees
Table 33: Vietmese Construction Output by Project Type (VND Million), 2009-2013
Table 34: Vietmese Construction Output by Project Type (VND Million), 2013-2018
Table 35: Vietmese Construction Output by Cost Type (VND Million), 2009-2013
Table 36: Vietmese Construction Output by Cost Type (VND Million), 2013-2018
Table 37: Vietmese Construction Output by Activity Type (VND Million), 2009-2013
Table 38: Vietmese Construction Output by Activity Type (VND Million), 2013-2018
Table 39: Vietmese Construction Value Add by Project Type (VND Million), 2009-2013
Table 40: Vietmese Construction Value Add by Project Type (VND Million), 2013-2018
Table 41: Vietmese Commercial Construction Output by Project Type (VND Million), 2009-2013
Table 42: Vietmese Commercial Construction Output by Project Type (VND Million), 2013-2018
Table 43: Vietmese Commercial Construction Output by Cost Type (VND Million), 2009-2013
Table 44: Vietmese Commercial Construction Output by Cost Type (VND Million), 2013-2018
Table 45: Vietmese Commercial Construction Output by Activity Type (VND Million), 2009-2013
Table 46: Vietmese Commercial Construction Output by Activity Type (VND Million), 2013-2018
Table 47: Vietmese Commercial Construction Value Add by Project Type (VND Million), 2009-2013
Table 48: Vietmese Commercial Construction Value Add by Project Type (VND Million), 2013-2018
Table 49: Vietmese Industrial Construction Output by Project Type (VND Million), 2009-2013
Table 50: Vietmese Industrial Construction Output by Project Type (VND Million), 2013-2018
Table 51: Vietmese Industrial Construction Output by Cost Type (VND Million), 2009-2013
Table 52: Vietmese Industrial Construction Output by Cost Type (VND Million), 2013-2018
Table 53: Vietmese Industrial Construction Output by Activity Type (VND Million), 2009-2013
Table 54: Vietmese Industrial Construction Output by Activity Type (VND Million), 2013-2018
Table 55: Vietmese Industrial Construction Value Add by Project Type (VND Million), 2009-2013
Table 56: Vietmese Industrial Construction Value Add by Project Type (VND Million), 2013-2018
Table 57: Vietmese Infrastructure Construction Output by Project Type (VND Million), 2009-2013
Table 58: Vietmese Infrastructure Construction Output by Project Type (VND Million), 2013-2018
Table 59: Vietmese Infrastructure Construction Output by Cost Type (VND Million), 2009-2013
Table 60: Vietmese Infrastructure Construction Output by Cost Type (VND Million), 2013-2018
Table 61: Vietmese Infrastructure Construction Output by Activity Type (VND Million), 2009-2013
Table 62: Vietmese Infrastructure Construction Output by Activity Type (VND Million), 2013-2018
Table 63: Vietmese Infrastructure Construction Value Add by Project Type (VND Million), 2009-2013
Table 64: Vietmese Infrastructure Construction Value Add by Project Type (VND Million), 2013-2018
Table 65: Vietmese Institutiol Construction Output by Project Type (VND Million), 2009-2013
Table 66: Vietmese Institutiol Construction Output by Project Type (VND Million), 2013-2018
Table 67: Vietmese Institutiol Construction Output by Cost Type (VND Million), 2009-2013
Table 68: Vietmese Institutiol Construction Output by Cost Type (VND Million), 2013-2018
Table 69: Vietmese Institutiol Construction Output by Activity Type (VND Million), 2009-2013
Table 70: Vietmese Institutiol Construction Output by Activity Type (VND Million), 2013-2018
Table 71: Vietmese Institutiol Construction Value Add by Project Type (VND Million), 2009-2013
Table 72: Vietmese Institutiol Construction Value Add by Project Type (VND Million), 2013-2018
Table 73: Vietmese Residential Construction Output by Project Type (VND Million), 2009-2013
Table 74: Vietmese Residential Construction Output by Project Type (VND Million), 2013-2018
Table 75: Vietmese Residential Construction Output by Cost Type (VND Million), 2009-2013
Table 76: Vietmese Residential Construction Output by Cost Type (VND Million), 2013-2018
Table 77: Vietmese Residential Construction Output by Activity Type (VND Million), 2009-2013
Table 78: Vietmese Residential Construction Output by Activity Type (VND Million), 2013-2018
Table 79: Vietmese Residential Construction Value Add by Project Type (VND Million), 2009-2013
Table 80: Vietmese Residential Construction Value Add by Project Type (VND Million), 2013-2018
Table 81: Timetric Construction Market Definitions