PUBLISHER: GlobalData | PRODUCT CODE: 1074457
PUBLISHER: GlobalData | PRODUCT CODE: 1074457
GlobalData has slightly revised down its estimated growth for Vietnam's construction industry in 2022, with the industry now expected to grow by 8.5% in real terms this year-compared to an earlier estimate of a 9% growth. This downward revision is attributed to the ongoing Russia-Ukraine crisis and its impact on energy and commodity prices, as well as supply chain disruption. The crisis has led to a surge in energy costs and impacted the supply of many vital construction materials, which will, to some degree, deter new construction investment and delay project starts.
The latest figures from the General Statistics Office of Vietnam (GSO) show that the Vietnamese construction industry's value add grew by 4% year on year (YoY) in Q2 2022, preceded by Y-o-Y growth of 3.3% in Q1 2022 and 2.1% in Q4 2021. Moreover, the average total credit outstanding to the construction industry rose by 6.6% YoY in the first five months of 2022, preceded by an annual growth of 2.9% in 2021 overall, according to the State Bank of Vietnam.
GlobalData expects Vietnam's construction industry to register an annual average growth rate of 8% between 2023 and 2026, supported by the government's focus on the development of the country's rail and road transport and energy infrastructure, coupled with investments to develop affordable housing. Through the state budget and contributions under the public-private partnerships and build-operate-transfer, in June 2022 the National Assembly (NA) approved the investment schemes worth VND71.9 trillion ($3.2 billion) for Ring Road Three in Ho Chi Minh City and VND83.2 trillion ($3.7 billion) for Ring Road Four in the capital city of Hanoi. In August 2022, the government announced that it plans to construct one million affordable houses for industrial workers and people with low incomes by 2030.
The report provides detailed market analysis, information and insights into Vietnam's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Vietnam. It provides -