Construction Comprehensive Report Q1/2019
VIETNAM CONSTRUCTION INDUSTRY
While the Asian construction industry is showing signs of cooling, typically the slowing economic growth of China has indirectly affected the construction industry. A wide range of industries, raw materials are affected as cement, steel, … China accounts for a large proportion not only in the global construction industry but also in Asia, so China’s influence on the regional construction market is very huge. Meanwhile, in Europe and North America, the construction market continued to remain unchanged over the past several years, due to the volatile regional economic situation and unstable recovery.
In Vietnamese construction market, after a long time of 'bubble'' development with virtual prices and then falling into a recession, house prices gradually return to real value. In the fourth quarter of 2018, the retail markets in Hanoi and Ho Chi Minh City welcomed new projects, which helped the supply rise dramatically. The market showed signs of burning again when the occupancy rate as well as rental prices improved.
With an export- oriented economy, Vietnam attacts a huge and growing amount of foreign investment. As the demand for land and industrial factories rises, these segments continue to be attractive investment channels.
The real estate attached to land market in Hanoi and Ho Chi Minh City in the fourth quarter of 2018 continued to show positive signs to supply as well as the increase in the number of transactions
In the transport infrastructure, roads and bridges made a contribution to the total value of the transport infrastructure industry, accounting for 56% of the total value in 2016.
At the beginning of 2019, the Ministry of Transport will complete and put into operation a series of large-scale traffic projects such as: Cu Mong tunnel, Phap Van-Cau Gie highway project, Ham Vong bridge .. .
The airport system in Vietnam is mostly operating under capacity, which indicates that Vietnam may need to upgrade and expand runways as well as infrastructure in existing airports instead of building new ones.
While the Asian construction industry is showing signs of cooling, typically the slowing economic growth of China has indirectly affected the construction industry. A wide range of industries, raw materials are affected as cement, steel, … China accounts for a large proportion not only in the global construction industry but also in Asia, so China’s influence on the regional construction market is very huge. Meanwhile, in Europe and North America, the construction market continued to remain unchanged over the past several years, due to the volatile regional economic situation and unstable recovery.
In Vietnamese construction market, after a long time of 'bubble'' development with virtual prices and then falling into a recession, house prices gradually return to real value. In the fourth quarter of 2018, the retail markets in Hanoi and Ho Chi Minh City welcomed new projects, which helped the supply rise dramatically. The market showed signs of burning again when the occupancy rate as well as rental prices improved.
With an export- oriented economy, Vietnam attacts a huge and growing amount of foreign investment. As the demand for land and industrial factories rises, these segments continue to be attractive investment channels.
The real estate attached to land market in Hanoi and Ho Chi Minh City in the fourth quarter of 2018 continued to show positive signs to supply as well as the increase in the number of transactions
In the transport infrastructure, roads and bridges made a contribution to the total value of the transport infrastructure industry, accounting for 56% of the total value in 2016.
At the beginning of 2019, the Ministry of Transport will complete and put into operation a series of large-scale traffic projects such as: Cu Mong tunnel, Phap Van-Cau Gie highway project, Ham Vong bridge .. .
The airport system in Vietnam is mostly operating under capacity, which indicates that Vietnam may need to upgrade and expand runways as well as infrastructure in existing airports instead of building new ones.
Abbreviations
Executive summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Economic agreements
2. INDUSTRY OVERVIEW
2.1 Global construction market
2.1.1 Scale and characteristics of world construction industry
2.1.2 Scale and characteristics of regional construction industry
2.1.3 Current state of world construction industry
2.2 Vietnam construction market
2.2.1 Vietnam construction industry overview
2.2.2 Input factors
2.2.3 Construction activities
2.2.4 Construction output
2.2.4.1 Residential Houses
2.2.4.2 Non-residential Houses
2.2.4.3 Infrastructure
2.2.4.4 Dedicated construction
2.3 Industry risk
2.4 Driving forces of the industry
2.5 Planning and Forecast
2.5.1 Planning
2.5.2 Forecast
3. ENTERPRISE ANALYSIS
3.1 Overview of enterprises
3.2 Profitability
3.3 Solvency
3.4 Affordability
3.5 Performance efficiency
3.6 Profit ratio
4. APPENDIX
Executive summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Economic agreements
2. INDUSTRY OVERVIEW
2.1 Global construction market
2.1.1 Scale and characteristics of world construction industry
2.1.2 Scale and characteristics of regional construction industry
2.1.3 Current state of world construction industry
2.2 Vietnam construction market
2.2.1 Vietnam construction industry overview
2.2.2 Input factors
2.2.3 Construction activities
2.2.4 Construction output
2.2.4.1 Residential Houses
2.2.4.2 Non-residential Houses
2.2.4.3 Infrastructure
2.2.4.4 Dedicated construction
2.3 Industry risk
2.4 Driving forces of the industry
2.5 Planning and Forecast
2.5.1 Planning
2.5.2 Forecast
3. ENTERPRISE ANALYSIS
3.1 Overview of enterprises
3.2 Profitability
3.3 Solvency
3.4 Affordability
3.5 Performance efficiency
3.6 Profit ratio
4. APPENDIX
LIST OF FIGURES
Figure 1: Construction sector’s contribution to GDP, 2013-2021f
Figure 2: GDP growth by quarter, 2015 – 2018
Figure 3: VND/USD exchange rate, 2013-2018
Figure 4: Construction Value and Infrastructure, 2010-2022f
Figure 5: FDI, 2015 – 2018e
Figure 6: FDI attraction by sector, 2018
Figure 7: Situation of ODA attraction and disbursement, 2010-2018f
Figure 8: Structure of total real estate assets by region in 2015
Figure 9: GDP growth rate by region, 2000-2021f
Figure 10: Value of World’s Construction industry, 2016-2022f
Figure 11: Average contribution ratio of construction industry on the world, 2016-2022f
Figure 12: Value structure of the world construction industry, 2010 - 2020f
Figure 13: Top cities with the highest gross margin in civil engineering in 2016
Figure 14: Value of Asia's construction industry, 2013 - 2019f
Figure 15: Construction value structure in Asia in 2014
Figure 16: Value structure of Asia's construction market in 2014
Figure 17: World crude steel production, 2011-2018
Figure 18: World steel production structure, 2006 - 2018
Figure 19: World’s top 10 largest steel-producing countries, 2011 – 2018
Figure 20: Producing steel according to application, 2015
Figure 21: World cement production, 2011 - 2017e
Figure 22: Top 10 international contractors with the biggest revenue in 2017
Figure 23: Top 10 domestic contractors with the world's largest revenue in 2017
Figure 24: Top 10 international contractors with the biggest revenue in US in 2017
Figure 25: Value of construction industry, 2010-2017
Figure 26: Number of employees in construction industry, 2010-2017
Figure 27: Construction industry value, 2012-2017
Figure 28: Share of economic sectors in the construction industry, 6M/2017
Figure 29: Steel price movement, 2018
Figure 30: Cement price in factories of some cement enterprises, 2018
Figure 31: Retail price of cement by region, 2018
Figure 32: Labor productivity in Vietnam, 2006-2017
Figure 33: Vietnam labor productivity by profession in 2016
Figure 34: Minimum wage by country 2014 - 2016
Figure 35: Import share of construction machines by type, 2017e
Figure 36: Import share of construction machines by country, 2017e
Figure 37: Import share of construction machines by manufacturer, 2017e
Figure 38: Import share of new construction machines by manufacturer, 2017e
Figure 39: Structure of construction cost
Figure 40: Total supply by category, Q4/2018
Figure 41: Supply structure by region, Q4/2018
Figure 42: Vacancy rate and rental price, Q4/2018
Figure 43: Supply of commercial center for lease, 2010-2018
Figure 44: Rental price and vacancy rate of commercial centers, 2010-2018
Figure 45: Total supply, Q4/2018
Figure 46: Retail supply structure by region, Q4/2018
Figure 47: Vacancy rate and rental price, Q4/2018
Figure 48: Total supply of commercial centers, 2007- 2018
Figure 49: Rental price and vacancy rate of commercial centers, 2009 - 2018
Figure 50: Structure of retail space for lease by purpose, 2015
Figure 51: Structure of retail space for lease by purpose, 2018
Figure 52: New supply and vacancy rate of grade A offices, 2010 - 2018
Figure 53: Total supply by region, Q4/2018
Figure 54: Office rental price, Q1/2015-Q4/2018
Figure 55: Average rental price by area, Q4/2018
Figure 56: Office supply and vacancy rate, Q1/2016-Q4/2018
Figure 57: Structure of office leasing according to activities, 2018
Figure 58: Supply and office vacancy rate, Q1/2016-Q4/2018
Figure 59: Total supply and rental price by category, Q4/2018
Figure 60: Office rental price, Q1/2016-Q4/2018
Figure 61: Structure of office leasing according to activities, 2018
Figure 62: Co-working leasing structure by type of business, 2018
Figure 63: Major office leasing transactions in Ho Chi Minh City HCM, 2018
Figure 64: Total Supply by Category, 2005-2018
Figure 65: Apartment rental price by category, Q1/2015-Q4/2018
Figure 66: Apartment rental price and rental capacity, Q1/2015-Q4/2018
Figure 67: Total supply of apartments for rent, Q1/2015-Q4/2018
Figure 68: Apartment rental prices by class, Q4/2016-Q4/2018
Figure 69: Housing supply in Hanoi, 2008-2018
Figure 70: Price fluctuation of apartment for sale, Q1/2011 – Q4/2018
Figure 71: New supply and number of apartments sold, 2013-2018
Figure 72: Offer price for apartment in Ho Chi Minh City, Q1/2016 – Q4/2018
Figure 73: High-end apartment segment's price, 2010-2018
Figure 74: Structure of buying houses by purpose in HCM, 2016
Figure 75: Lending rates of commercial banks, Q4/2018
Figure 76: Total villa/townhouse supply, Q1/2015-Q4/2018
Figure 77: Price fluctuation of villas and townhouses, Q1/2014-Q4/2018
Figure 78: Total villa/townhouse supply, Q1/2016-Q4/2018
Figure 79: Hotel total supply, Q1/2016-Q4/2018
Figure 80: Rental price and capacity, Q1/2017-Q4/2018
Figure 81: Hotel total supply, Q1/2016 – Q4/2018
Figure 82: Rental price and capacity, Q4/2018
Figure 83: Average rental price and capacity, Q1/2017-Q4/2018
Figure 84: Total Supply by Region, Q4/2018
Figure 85: Rental price by area, Q4/2018
Figure 86: Total supply and vacancy rate of Northern Industrial Zone, Q4/2018
Figure 87: Average rental price for the Northern Industrial Zone, Q4/2018
Figure 88: Total supply and vacancy rate, Q4/2018
Figure 89: Rental price by area, Q4/2018
Figure 90: Vacancy rate, 2011-2018
Figure 91: Rental price for factories available, 2011 - 2018
Figure 92: Rental price for land by area, 2011 – 2018
Figure 93: Quality of Infrastructure in Vietnam, 2011-2017
Figure 94: Infrastructure Rank by Country, 2017
Figure 95: Investment capital for various types of transportation, 2010 - 2015
Figure 96: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 97: LPI of Vietnam, 2010 - 2018
Figure 98: The number of BOT and BT traffic projects is under the management of the Ministry of Transport on the roads
Figure 99: The outstanding balance of BOT and BT credit of the banking system, 2014 – 9M/2017
Figure 100: Ability of receiving ships of Vietnamese ports
Figure 101: Proportion of power generation by supplier, 2016
Figure 102: Total electricity supply, 2010 – 2018e
Figure 103: Structure of electricity production, 2017
Figure 104: Power loss, 2010 – 2018e
Figure 105: Rate of Electricity losses in the supply chain, 2010 - 2017
Figure 106: Structure of Investment Costs for Infrastructure Development in GDP, 1995 - 2013
Figure 107: Urbanization levels, 2010 - 2017
Figure 108: Disposable income and household spending, 2008 – 2017f
Figure 109: Real estate outstanding credit, 2012-2018
Figure 110: Structure of real estate outstanding credit, 2018
Figure 111: Structure of population by class (expenditure), 2013 - 2020f
Figure 112: Forecast for demand for steel in Vietnam to 2020
Figure 113: Growth forecast for construction industry, 2016-2025f
Figure 114: Net revenue growth, 2016-2017
Figure 115: Gross profit growth, 2017
Figure 116: Solvency, 2017
Figure 117: Accounts receivable turnover, 2017
Figure 118: Affordability of enterprises, 2017
Figure 119: Total asset turnover, 2017
Figure 120: Fixed asset turnover, 2017
Figure 121: Administrative expenses/net revenue, 2016-2017
Figure 122: Interest expenses/net revenue, 2016-2017
Figure 123: Profit ratio, 2017
Figure 1: Construction sector’s contribution to GDP, 2013-2021f
Figure 2: GDP growth by quarter, 2015 – 2018
Figure 3: VND/USD exchange rate, 2013-2018
Figure 4: Construction Value and Infrastructure, 2010-2022f
Figure 5: FDI, 2015 – 2018e
Figure 6: FDI attraction by sector, 2018
Figure 7: Situation of ODA attraction and disbursement, 2010-2018f
Figure 8: Structure of total real estate assets by region in 2015
Figure 9: GDP growth rate by region, 2000-2021f
Figure 10: Value of World’s Construction industry, 2016-2022f
Figure 11: Average contribution ratio of construction industry on the world, 2016-2022f
Figure 12: Value structure of the world construction industry, 2010 - 2020f
Figure 13: Top cities with the highest gross margin in civil engineering in 2016
Figure 14: Value of Asia's construction industry, 2013 - 2019f
Figure 15: Construction value structure in Asia in 2014
Figure 16: Value structure of Asia's construction market in 2014
Figure 17: World crude steel production, 2011-2018
Figure 18: World steel production structure, 2006 - 2018
Figure 19: World’s top 10 largest steel-producing countries, 2011 – 2018
Figure 20: Producing steel according to application, 2015
Figure 21: World cement production, 2011 - 2017e
Figure 22: Top 10 international contractors with the biggest revenue in 2017
Figure 23: Top 10 domestic contractors with the world's largest revenue in 2017
Figure 24: Top 10 international contractors with the biggest revenue in US in 2017
Figure 25: Value of construction industry, 2010-2017
Figure 26: Number of employees in construction industry, 2010-2017
Figure 27: Construction industry value, 2012-2017
Figure 28: Share of economic sectors in the construction industry, 6M/2017
Figure 29: Steel price movement, 2018
Figure 30: Cement price in factories of some cement enterprises, 2018
Figure 31: Retail price of cement by region, 2018
Figure 32: Labor productivity in Vietnam, 2006-2017
Figure 33: Vietnam labor productivity by profession in 2016
Figure 34: Minimum wage by country 2014 - 2016
Figure 35: Import share of construction machines by type, 2017e
Figure 36: Import share of construction machines by country, 2017e
Figure 37: Import share of construction machines by manufacturer, 2017e
Figure 38: Import share of new construction machines by manufacturer, 2017e
Figure 39: Structure of construction cost
Figure 40: Total supply by category, Q4/2018
Figure 41: Supply structure by region, Q4/2018
Figure 42: Vacancy rate and rental price, Q4/2018
Figure 43: Supply of commercial center for lease, 2010-2018
Figure 44: Rental price and vacancy rate of commercial centers, 2010-2018
Figure 45: Total supply, Q4/2018
Figure 46: Retail supply structure by region, Q4/2018
Figure 47: Vacancy rate and rental price, Q4/2018
Figure 48: Total supply of commercial centers, 2007- 2018
Figure 49: Rental price and vacancy rate of commercial centers, 2009 - 2018
Figure 50: Structure of retail space for lease by purpose, 2015
Figure 51: Structure of retail space for lease by purpose, 2018
Figure 52: New supply and vacancy rate of grade A offices, 2010 - 2018
Figure 53: Total supply by region, Q4/2018
Figure 54: Office rental price, Q1/2015-Q4/2018
Figure 55: Average rental price by area, Q4/2018
Figure 56: Office supply and vacancy rate, Q1/2016-Q4/2018
Figure 57: Structure of office leasing according to activities, 2018
Figure 58: Supply and office vacancy rate, Q1/2016-Q4/2018
Figure 59: Total supply and rental price by category, Q4/2018
Figure 60: Office rental price, Q1/2016-Q4/2018
Figure 61: Structure of office leasing according to activities, 2018
Figure 62: Co-working leasing structure by type of business, 2018
Figure 63: Major office leasing transactions in Ho Chi Minh City HCM, 2018
Figure 64: Total Supply by Category, 2005-2018
Figure 65: Apartment rental price by category, Q1/2015-Q4/2018
Figure 66: Apartment rental price and rental capacity, Q1/2015-Q4/2018
Figure 67: Total supply of apartments for rent, Q1/2015-Q4/2018
Figure 68: Apartment rental prices by class, Q4/2016-Q4/2018
Figure 69: Housing supply in Hanoi, 2008-2018
Figure 70: Price fluctuation of apartment for sale, Q1/2011 – Q4/2018
Figure 71: New supply and number of apartments sold, 2013-2018
Figure 72: Offer price for apartment in Ho Chi Minh City, Q1/2016 – Q4/2018
Figure 73: High-end apartment segment's price, 2010-2018
Figure 74: Structure of buying houses by purpose in HCM, 2016
Figure 75: Lending rates of commercial banks, Q4/2018
Figure 76: Total villa/townhouse supply, Q1/2015-Q4/2018
Figure 77: Price fluctuation of villas and townhouses, Q1/2014-Q4/2018
Figure 78: Total villa/townhouse supply, Q1/2016-Q4/2018
Figure 79: Hotel total supply, Q1/2016-Q4/2018
Figure 80: Rental price and capacity, Q1/2017-Q4/2018
Figure 81: Hotel total supply, Q1/2016 – Q4/2018
Figure 82: Rental price and capacity, Q4/2018
Figure 83: Average rental price and capacity, Q1/2017-Q4/2018
Figure 84: Total Supply by Region, Q4/2018
Figure 85: Rental price by area, Q4/2018
Figure 86: Total supply and vacancy rate of Northern Industrial Zone, Q4/2018
Figure 87: Average rental price for the Northern Industrial Zone, Q4/2018
Figure 88: Total supply and vacancy rate, Q4/2018
Figure 89: Rental price by area, Q4/2018
Figure 90: Vacancy rate, 2011-2018
Figure 91: Rental price for factories available, 2011 - 2018
Figure 92: Rental price for land by area, 2011 – 2018
Figure 93: Quality of Infrastructure in Vietnam, 2011-2017
Figure 94: Infrastructure Rank by Country, 2017
Figure 95: Investment capital for various types of transportation, 2010 - 2015
Figure 96: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 97: LPI of Vietnam, 2010 - 2018
Figure 98: The number of BOT and BT traffic projects is under the management of the Ministry of Transport on the roads
Figure 99: The outstanding balance of BOT and BT credit of the banking system, 2014 – 9M/2017
Figure 100: Ability of receiving ships of Vietnamese ports
Figure 101: Proportion of power generation by supplier, 2016
Figure 102: Total electricity supply, 2010 – 2018e
Figure 103: Structure of electricity production, 2017
Figure 104: Power loss, 2010 – 2018e
Figure 105: Rate of Electricity losses in the supply chain, 2010 - 2017
Figure 106: Structure of Investment Costs for Infrastructure Development in GDP, 1995 - 2013
Figure 107: Urbanization levels, 2010 - 2017
Figure 108: Disposable income and household spending, 2008 – 2017f
Figure 109: Real estate outstanding credit, 2012-2018
Figure 110: Structure of real estate outstanding credit, 2018
Figure 111: Structure of population by class (expenditure), 2013 - 2020f
Figure 112: Forecast for demand for steel in Vietnam to 2020
Figure 113: Growth forecast for construction industry, 2016-2025f
Figure 114: Net revenue growth, 2016-2017
Figure 115: Gross profit growth, 2017
Figure 116: Solvency, 2017
Figure 117: Accounts receivable turnover, 2017
Figure 118: Affordability of enterprises, 2017
Figure 119: Total asset turnover, 2017
Figure 120: Fixed asset turnover, 2017
Figure 121: Administrative expenses/net revenue, 2016-2017
Figure 122: Interest expenses/net revenue, 2016-2017
Figure 123: Profit ratio, 2017
LIST OF TABLES
Table 1: Top 10 construction machine manufacturers worldwide, 2017
Table 2: World’s top 10 largest construction contractors, 2016
Table 3: List of the world's 10 largest steel producers in the year 2016-2017
Table 4: World’s top largest cement-producing countries, 2017
Table 5: World’s top largest cement-producing companies, 2017
Table 6: World’s top 20 real estate companies with the largest total assets in 2016
Table 7: Construction cost in some major cities in ASEAN region, Q4/2016
Table 8: Utilities costs in some major cities in ASEAN, Q4/2016
Table 9: Typical projects are scheduled for 2019-2020
Table 10: Typical projects under construction, 2019
Table 11: Typical projects under construction
Table 12: Typical Serviced Apartments in Hanoi, 2019
Table 13: Typical projects under construction in 2019
Table 14: Typical projects are open for sale
Table 15: Typical projects in the period 2018-2020
Table 16: Roadway infrastructure, 2017
Table 17: Major seaports in Vietnam
Table 18: Operational capacity of some major airways, 2016e
Table 19: Revenue and profit of AVC, 2017
Table 20: Electricity transmission and distribution network length, 2012 - 2017
Table 21: Electricity loss rate in some countries, 2011-2014
Table 22: The largest cities of Vietnam estimated in 2017
Table 23: Top construction enterprises having the largest revenue in 2017
Table 1: Top 10 construction machine manufacturers worldwide, 2017
Table 2: World’s top 10 largest construction contractors, 2016
Table 3: List of the world's 10 largest steel producers in the year 2016-2017
Table 4: World’s top largest cement-producing countries, 2017
Table 5: World’s top largest cement-producing companies, 2017
Table 6: World’s top 20 real estate companies with the largest total assets in 2016
Table 7: Construction cost in some major cities in ASEAN region, Q4/2016
Table 8: Utilities costs in some major cities in ASEAN, Q4/2016
Table 9: Typical projects are scheduled for 2019-2020
Table 10: Typical projects under construction, 2019
Table 11: Typical projects under construction
Table 12: Typical Serviced Apartments in Hanoi, 2019
Table 13: Typical projects under construction in 2019
Table 14: Typical projects are open for sale
Table 15: Typical projects in the period 2018-2020
Table 16: Roadway infrastructure, 2017
Table 17: Major seaports in Vietnam
Table 18: Operational capacity of some major airways, 2016e
Table 19: Revenue and profit of AVC, 2017
Table 20: Electricity transmission and distribution network length, 2012 - 2017
Table 21: Electricity loss rate in some countries, 2011-2014
Table 22: The largest cities of Vietnam estimated in 2017
Table 23: Top construction enterprises having the largest revenue in 2017
