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Vietnam Construction Industry Building Edifice of Growth
Jul 14, 2008

The construction industry of Vietnam is expected to grow strong as population is consistently growing, urban areas are rapidly expanding and government is supporting the industries.

The Ministry of Construction in Vietnam said that the production of building material is expected to rise in the country as the cement output, sanitary ware, construction glass and paving bricks is anticipated to double or triple by 2020, as reported by
CHINA DAILY.

The Ministry reported that the cement production is expected to be in the range of 50.6-55.6 Million Tons by 2010, 79.7-87.6 Million Tons by 2015, and 101.7-111.8 Million Tons by 2020. Besides, the production of sanitary ware products is likely to reach 8-10 Million in 2010, between 12 and 14 Million in 2015, and 19-23 Million in 2020. The construction glass production is expected to rise between 88 and 96 Million Sq Meter by 2010, 131 and 140 Million Sq Meter by 2015, and 196 and 202 Million Sq Meter by 2020.

The high projection of building material production in Vietnam is mainly based on increasing population and rapid urbanization in the country. These will create the demand for more houses, which, in turn, raise the construction material demand. The Construction Ministry also projected an unprecedented growth of 45% in urban areas by 2020 that would shot up the demand for building material.

Moreover, Vietnam is the 13th largest populated country in the world and one of the fastest developing economies. And this is attracting a large number of importers, manufacturers, exporters and investors to the country. This has created the need for better infrastructure, and as a result, the demand for building material might go up in future.

Also the government of Vietnam has selected 11 key industries for extending loans, special allocations from budget and official assistance to grow rapidly. These industries will require infrastructure development that will further lead to a rise in demand for construction material.

Furthermore, the Department of Trade and Industry targets to bring eight construction and engineering design & services, building & decorative material, and building technologies companies to the country, through CITEM (Center for International Trade Exposition and Mission). Hence, the demand for building material will pick pace in future.

According to a Research Analyst at
RNCOS, “Vietnam construction industry is witnessing a boom period as the country is rapidly transforming into an urban country and the good times are expected to stay long. Hence, construction companies can gain a strong footing in the country.”

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