Vietnam Construction Equipment Market - Strategic Assessment & Forecast 2025-2030

The Vietnam construction equipment market size is expected to grow at a CAGR of 11.25% from 2024 to 2030.

IMPACT OF TARIFF

The Vietnam construction equipment market is moderately affected by tariffs. Several Japanese brands, such as Komatsu and Hitachi, have strong distribution facilities in the country. The country has low dependence on imported raw materials like steel, aluminium, and rubber from the U.S. market. However, American brands like Caterpillar also hold a strong market presence in Vietnam. The prices of imports from these American brands have increased due to the impact of tariffs. Furthermore, in July 2025, the U.S. government imposed a 20% tariff on the Southeast Asian countries, including the Vietnamese market. The country's government decided to impose a 40% tariff rate on imports from other countries.

KEY HIGHLIGHTS

• Earthmoving equipment accounted for the largest market share in the Vietnam construction equipment market in 2024. Excavators in the earthmoving segment accounted for the largest share in 2024. The country's investment in renovating its public infrastructure drives the growth of the country's earthmoving market.
• The sales of construction equipment are expected to grow at a steady pace in 2024 due to growing investment in public infrastructure, including the transport sector.
• In 2024, the weakening of Vietnam's local currency, the Dong, was expected to further impact the sales of heavy equipment, including crawler excavators, in the Vietnamese industry. The depreciation of the Vietnamese currency will impact the cost of excavators, as Vietnam majorly depends on imports.
• In 2024, the country's government planned to invest over USD 25 billion in public infrastructure projects.
• Chinese manufacturers have a strong market presence in the Vietnam construction equipment market. In 2024, SANY held the strongest industry share among Chinese players in Vietnam.
• Liugong has established its third subsidiary in Southeast Asia, with the official opening of Liugong Vietnam Company in Hanoi.
• The government allows the duty-free import of crawler excavators. The country relies on imports of construction machinery, including excavators from China, the U.S., Japan, and Korea.
• In 2023, Vietnam and Singapore signed an MoU (Memorandum of Understanding) to work together on eco-friendly and digital economic initiatives. This agreement will support the launch of new infrastructure projects aimed at achieving net-zero emissions.

SEGMENTATION BY TYPE

• Earthmoving Equipment
  • Excavator
  • Backhoe Loaders
  • Wheeled Loaders
  • Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers, Motor Graders)
• Road Construction Equipment
  • Road Rollers
  • Asphalt Pavers
• Material Handling Equipment
  • Crane
  • Forklift & Telescopic Handlers
  • Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
• Other Construction Equipment
  • Dumper
  • Tipper
  • Concrete Mixer
  • Concrete Pump Truck

Segmentation by End Users

• Construction
• Mining
• Manufacturing
• Others (Power Generation, Utilities, Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

VIETNAM CONSTRUCTION EQUIPMENT MARKET TRENDS & DRIVERS

Rising Focus on Compact and Electric Construction Equipment in the Vietnam Construction Equipment Market

• The Vietnamese construction industry is shifting toward sustainable and electrified solutions. The industry is transforming to use electric construction equipment instead of traditional Internal combustion engine (ICE).
• The electric construction equipment market is driven by several factors, such as favorable government initiatives and a growing demand for eco-friendly construction projects. However, an important challenge is the high price of electric construction machinery, including electric crawler excavators.
• To align with the global net-zero emission target, construction equipment manufacturers are focusing on capitalizing on the lithium-ion battery technology in electric excavators and other electric-powered equipment to reduce their carbon footprint.

Introduction of Dual Excavators in the Vietnam Construction Equipment Market Due to Their Flexible Uses

• XCMG, a Chinese multinational company, introduces dual-use diggers and ordinary peach shovels in excavators. It has the advantage of being able to work for multiple purposes at a time, such as a chain hoe and wheel hoe, by switching between the chain and the tires. This equipment is widely used in the construction and manufacturing industries in the country.
• In 2023, XCMG launched dual excavators that were extremely flexible, cost-efficient, and easy to transport.
• Chinese companies have recently gained a good industry share due to their innovative products, low prices, and excellent after-sales services. The introduction of dual excavators supports the growth of Chinese companies in the Vietnamese industry.

Rise in Infrastructure Investment Projects

• In 2024, the Vietnam government planned to invest over USD 25 billion in various public infrastructure projects globally. Nearly 65% of the total investment was allocated to the transport sector, which will promote smooth transit and create new development space for localities and regions across the country.
• The government relies on three investment channels, such as domestic, foreign, and private, for its infrastructure projects. A large amount of the investment is planned for the transport sector, as investment in the transport industry will reduce business logistics costs and increase the competitiveness of businesses and the economy.
• The Vietnamese government planned 34 major infrastructure projects across 46 provinces in 2024. In addition, the government also planned five railway projects, two airports, and several road, highway, and ring road construction projects in the Hanoi Capital region, Ho Chi Minh City, etc. Such projects are projected to support the growth of the Vietnam construction equipment market.

Growing Investment in Renewable Energy Sector

• The country will face a surge in power demand and consumption over the coming decade, according to the Institute of Energy of Vietnam (IEV).
• The government expects power consumption to grow 10%-12% annually by 2030. Therefore, the government increases its focus on renewable energy resources to fulfill the growing power demand.
• The country has high potential to generate solar energy, according to the World Bank. In 2023, the country generated 17,000 MW of solar energy, which was expected to grow in 2024 due to various government initiatives providing tax benefits and subsidies for installing solar power generation units.

INDUSTRY RESTRAINTS

Shortage of Skilled Labor in Vietnam

• Ho Chi Minh City is experiencing a significant shortage of skilled labor. This shortage is impacting various industries, making it challenging for businesses to recover production and expand their markets. Despite efforts to recruit workers, many companies are struggling to find enough qualified employees.
• FDI companies in Nghe An, a province in central Vietnam, are struggling to find highly skilled workers as new factories become operational. The province has a significant labor force, yet many workers are migrating to places with better opportunities.
• High labor turnover, partly due to low wages and inadequate infrastructure, exacerbates the issue. To address this shortage, companies need to improve the working conditions and offer competitive benefits. The demand for skilled labor is expected to surge further by 2025.

Increase in Building Material Prices Hampering the Vietnam Construction Equipment Market

• In 2024, there was a surge in iron and steel prices in the Vietnamese market. The prices of building materials, including iron and steel, increased by 30%-40% in 2024, which pushed up the overall price of real estate projects in the country. In 2024, other construction materials, such as asphalt, saw a price increase of 9%-10%, while the cement price increased by 3%-5% in the Vietnamese market.
• The increase in building material prices has made real estate prices higher, which adversely impacts the demand among low-income populations. The sharp increase in prices of building materials is due to a mismatch between demand and supply. In 2024, the demand for building materials increased exponentially due to rising government investment in infrastructure and housing projects across the country.

VIETNAM CONSTRUCTION EQUIPMENT MARKET VENDOR LANDSCAPE

• Komatsu, Volvo CE, Hitachi Construction Machinery, SANY, and Caterpillar are the front runners in the Vietnam construction equipment market. These companies have strong market share and offer diverse sets of equipment in the Vietnamese industry.
• Yanmar, Kubota, Manitou, Liu Gong, Takeuchi, and JLG are niche players in the Vietnam construction equipment market. These companies offer low product diversification and have a strong presence in the country's market.
• JCB, Kobelco, Sumitomo, HD Hyundai Construction Equipment, CNH Industrial N.V., Tadano, and Zoomlion are emerging in the Vietnam construction equipment market. These companies are introducing new technologically advanced products to challenge the share of market leaders in the country's market.
• Kato Works, Airman, Terex, and Shantui have low product diversification in the Vietnam construction equipment market; these companies are lagging in adopting new technologies used in construction equipment.

Prominent Vendors

• Caterpillar
• Komatsu
• Volvo Construction Equipment
• Hitachi Construction Machinery (HCM)
• Liebherr
• SANY
• Xuzhou Construction Machinery Group Co., Ltd. (XCMG)
• JCB
• Kobelco
• Zoomlion Heavy Industry Science&Technology Co., Ltd.
• Hyundai Construction Equipment

Other Prominent Vendors

• JLG
• CNH Industrial N.V.
• Yanmar
• Liugong Machinery Co., Ltd.
• Shantui Construction Machinery Co., Ltd
• Takeuchi
• SDLG
• Manitou
• SUMITOMO CONSTRUCTION MACHINERY CO.,LTD.
• KATO WORKS CO., LTD.
• Terex Corporation
• Tadano
• Bobcat
• AIRMAN

Distributor Profiles

• Tin Quang Equipment JSC
• VITRAC
• Marubeni Heavy Equipment Co., Ltd.
• JCT Vietnam
• Multico Equipment Vietnam Co., Ltd
• UMAC Vietnam

KEY QUESTIONS ANSWERED:

1. What is the growth rate of the Vietnam construction equipment market?

2. Who are the key players in the Vietnam construction equipment market?

3. How big is the Vietnam construction equipment market?

4. Which are the major distributor companies in the Vietnam construction equipment market?

5. What are the trends in the Vietnam construction equipment market?