Construction Standard 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
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
2.2 Vietnam construction market
2.2.1 Vietnam construction industry overview
2.2.2 Construction activities
2.2.3 Construction output
2.2.3.1 Residential Houses
2.2.3.2 Non-residential Houses
2.2.3.3 Infrastructure
2.2.3.4 Dedicated construction
2.3 Driving forces of the industry
2.4 Industry planning
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
Executive summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
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
2.2 Vietnam construction market
2.2.1 Vietnam construction industry overview
2.2.2 Construction activities
2.2.3 Construction output
2.2.3.1 Residential Houses
2.2.3.2 Non-residential Houses
2.2.3.3 Infrastructure
2.2.3.4 Dedicated construction
2.3 Driving forces of the industry
2.4 Industry planning
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
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: Value of construction industry, 2010-2017
Figure 18: Number of employees in construction industry, 2010-2017
Figure 19: Construction industry value, 2012-2017
Figure 20: Share of economic sectors in the construction industry, 6M/2017
Figure 21: Structure of construction cost
Figure 22: Total supply by category, Q4/2018
Figure 23: Supply structure by region, Q4/2018
Figure 24: Vacancy rate and rental price, Q4/2018
Figure 25: Supply of commercial center for lease, 2010-2018
Figure 26: Rental price and vacancy rate of commercial centers, 2010-2018
Figure 27: Total supply, Q4/2018
Figure 28: Retail supply structure by region, Q4/2018
Figure 29: Vacancy rate and rental price, Q4/2018
Figure 30: Total supply of commercial centers, 2007- 2018
Figure 31: Rental price and vacancy rate of commercial centers, 2009 - 2018
Figure 32: Structure of retail space for lease by purpose, 2015
Figure 33: Structure of retail space for lease by purpose, 2018
Figure 34: New supply and vacancy rate of grade A offices, 2010 - 2018
Figure 35: Total supply by region, Q4/2018
Figure 36: Office rental price, Q1/2015-Q4/2018
Figure 37: Average rental price by area, Q4/2018
Figure 38: Office supply and vacancy rate, Q1/2016-Q4/2018
Figure 39: Structure of office leasing according to activities, 2018
Figure 40: Supply and office vacancy rate, Q1/2016-Q4/2018
Figure 41: Total supply and rental price by category, Q4/2018
Figure 42: Office rental price, Q1/2016-Q4/2018
Figure 43: Structure of office leasing according to activities, 2018
Figure 44: Co-working leasing structure by type of business, 2018
Figure 45: Major office leasing transactions in Ho Chi Minh City HCM, 2018
Figure 46: Total Supply by Category, 2005-2018
Figure 47: Apartment rental price by category, Q1/2015-Q4/2018
Figure 48: Apartment rental price and rental capacity, Q1/2015-Q4/2018
Figure 49: Total supply of apartments for rent, Q1/2015-Q4/2018
Figure 50: Apartment rental prices by class, Q4/2016-Q4/2018
Figure 51: Housing supply in Hanoi, 2008-2018
Figure 52: Price fluctuation of apartment for sale, Q1/2011 – Q4/2018
Figure 53: New supply and number of apartments sold, 2013-2018
Figure 54: Offer price for apartment in Ho Chi Minh City, Q1/2016 – Q4/2018
Figure 55: High-end apartment segment's price, 2010-2018
Figure 56: Structure of buying houses by purpose in HCM, 2016
Figure 57: Lending rates of commercial banks, Q4/2018
Figure 58: Total villa/townhouse supply, Q1/2015-Q4/2018
Figure 59: Price fluctuation of villas and townhouses, Q1/2014-Q4/2018
Figure 60: Total villa/townhouse supply, Q1/2016-Q4/2018
Figure 61: Hotel total supply, Q1/2016-Q4/2018
Figure 62: Rental price and capacity, Q1/2017-Q4/2018
Figure 63: Hotel total supply, Q1/2016 – Q4/2018
Figure 64: Rental price and capacity, Q4/2018
Figure 65: Average rental price and capacity, Q1/2017-Q4/2018
Figure 66: Total Supply by Region, Q4/2018
Figure 67: Rental price by area, Q4/2018
Figure 68: Total supply and vacancy rate of Northern Industrial Zone, Q4/2018
Figure 69: Average rental price for the Northern Industrial Zone, Q4/2018
Figure 70: Total supply and vacancy rate, Q4/2018
Figure 71: Rental price by area, Q4/2018
Figure 72: Vacancy rate, 2011-2018
Figure 73: Rental price for factories available, 2011 - 2018
Figure 74: Rental price for land by area, 2011 – 2018
Figure 75: Quality of Infrastructure in Vietnam, 2011-2017
Figure 76: Infrastructure Rank by Country, 2017
Figure 77: Investment capital for various types of transportation, 2010 - 2015
Figure 78: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 79: LPI of Vietnam, 2010 - 2018
Figure 80: The number of BOT and BT traffic projects is under the management of the Ministry of Transport on the roads
Figure 81: The outstanding balance of BOT and BT credit of the banking system, 2014 – 9M/2017
Figure 82: Ability of receiving ships of Vietnamese ports
Figure 83: Proportion of power generation by supplier, 2016
Figure 84: Total electricity supply, 2010 – 2018e
Figure 85: Structure of electricity production, 2017
Figure 86: Power loss, 2010 – 2018e
Figure 87: Rate of Electricity losses in the supply chain, 2010 - 2017
Figure 88: Structure of Investment Costs for Infrastructure Development in GDP, 1995 - 2013
Figure 89: Urbanization levels, 2010 - 2017
Figure 90: Disposable income and household spending, 2008 – 2017f
Figure 91: Real estate outstanding credit, 2012-2018
Figure 92: Structure of real estate outstanding credit, 2018
Figure 93: Structure of population by class (expenditure), 2013 - 2020f
Figure 94: Net revenue growth, 2016-2017
Figure 95: Gross profit growth, 2017
Figure 96: Solvency, 2017
Figure 97: Accounts receivable turnover, 2017
Figure 98: Affordability of enterprises, 2017
Figure 99: Total asset turnover, 2017
Figure 100: Fixed asset turnover, 2017
Figure 101: Administrative expenses/net revenue, 2016-2017
Figure 102: Interest expenses/net revenue, 2016-2017
Figure 103: 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: Value of construction industry, 2010-2017
Figure 18: Number of employees in construction industry, 2010-2017
Figure 19: Construction industry value, 2012-2017
Figure 20: Share of economic sectors in the construction industry, 6M/2017
Figure 21: Structure of construction cost
Figure 22: Total supply by category, Q4/2018
Figure 23: Supply structure by region, Q4/2018
Figure 24: Vacancy rate and rental price, Q4/2018
Figure 25: Supply of commercial center for lease, 2010-2018
Figure 26: Rental price and vacancy rate of commercial centers, 2010-2018
Figure 27: Total supply, Q4/2018
Figure 28: Retail supply structure by region, Q4/2018
Figure 29: Vacancy rate and rental price, Q4/2018
Figure 30: Total supply of commercial centers, 2007- 2018
Figure 31: Rental price and vacancy rate of commercial centers, 2009 - 2018
Figure 32: Structure of retail space for lease by purpose, 2015
Figure 33: Structure of retail space for lease by purpose, 2018
Figure 34: New supply and vacancy rate of grade A offices, 2010 - 2018
Figure 35: Total supply by region, Q4/2018
Figure 36: Office rental price, Q1/2015-Q4/2018
Figure 37: Average rental price by area, Q4/2018
Figure 38: Office supply and vacancy rate, Q1/2016-Q4/2018
Figure 39: Structure of office leasing according to activities, 2018
Figure 40: Supply and office vacancy rate, Q1/2016-Q4/2018
Figure 41: Total supply and rental price by category, Q4/2018
Figure 42: Office rental price, Q1/2016-Q4/2018
Figure 43: Structure of office leasing according to activities, 2018
Figure 44: Co-working leasing structure by type of business, 2018
Figure 45: Major office leasing transactions in Ho Chi Minh City HCM, 2018
Figure 46: Total Supply by Category, 2005-2018
Figure 47: Apartment rental price by category, Q1/2015-Q4/2018
Figure 48: Apartment rental price and rental capacity, Q1/2015-Q4/2018
Figure 49: Total supply of apartments for rent, Q1/2015-Q4/2018
Figure 50: Apartment rental prices by class, Q4/2016-Q4/2018
Figure 51: Housing supply in Hanoi, 2008-2018
Figure 52: Price fluctuation of apartment for sale, Q1/2011 – Q4/2018
Figure 53: New supply and number of apartments sold, 2013-2018
Figure 54: Offer price for apartment in Ho Chi Minh City, Q1/2016 – Q4/2018
Figure 55: High-end apartment segment's price, 2010-2018
Figure 56: Structure of buying houses by purpose in HCM, 2016
Figure 57: Lending rates of commercial banks, Q4/2018
Figure 58: Total villa/townhouse supply, Q1/2015-Q4/2018
Figure 59: Price fluctuation of villas and townhouses, Q1/2014-Q4/2018
Figure 60: Total villa/townhouse supply, Q1/2016-Q4/2018
Figure 61: Hotel total supply, Q1/2016-Q4/2018
Figure 62: Rental price and capacity, Q1/2017-Q4/2018
Figure 63: Hotel total supply, Q1/2016 – Q4/2018
Figure 64: Rental price and capacity, Q4/2018
Figure 65: Average rental price and capacity, Q1/2017-Q4/2018
Figure 66: Total Supply by Region, Q4/2018
Figure 67: Rental price by area, Q4/2018
Figure 68: Total supply and vacancy rate of Northern Industrial Zone, Q4/2018
Figure 69: Average rental price for the Northern Industrial Zone, Q4/2018
Figure 70: Total supply and vacancy rate, Q4/2018
Figure 71: Rental price by area, Q4/2018
Figure 72: Vacancy rate, 2011-2018
Figure 73: Rental price for factories available, 2011 - 2018
Figure 74: Rental price for land by area, 2011 – 2018
Figure 75: Quality of Infrastructure in Vietnam, 2011-2017
Figure 76: Infrastructure Rank by Country, 2017
Figure 77: Investment capital for various types of transportation, 2010 - 2015
Figure 78: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 79: LPI of Vietnam, 2010 - 2018
Figure 80: The number of BOT and BT traffic projects is under the management of the Ministry of Transport on the roads
Figure 81: The outstanding balance of BOT and BT credit of the banking system, 2014 – 9M/2017
Figure 82: Ability of receiving ships of Vietnamese ports
Figure 83: Proportion of power generation by supplier, 2016
Figure 84: Total electricity supply, 2010 – 2018e
Figure 85: Structure of electricity production, 2017
Figure 86: Power loss, 2010 – 2018e
Figure 87: Rate of Electricity losses in the supply chain, 2010 - 2017
Figure 88: Structure of Investment Costs for Infrastructure Development in GDP, 1995 - 2013
Figure 89: Urbanization levels, 2010 - 2017
Figure 90: Disposable income and household spending, 2008 – 2017f
Figure 91: Real estate outstanding credit, 2012-2018
Figure 92: Structure of real estate outstanding credit, 2018
Figure 93: Structure of population by class (expenditure), 2013 - 2020f
Figure 94: Net revenue growth, 2016-2017
Figure 95: Gross profit growth, 2017
Figure 96: Solvency, 2017
Figure 97: Accounts receivable turnover, 2017
Figure 98: Affordability of enterprises, 2017
Figure 99: Total asset turnover, 2017
Figure 100: Fixed asset turnover, 2017
Figure 101: Administrative expenses/net revenue, 2016-2017
Figure 102: Interest expenses/net revenue, 2016-2017
Figure 103: 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: Construction cost in some major cities in ASEAN region, Q4/2016
Table 4: Utilities costs in some major cities in ASEAN, Q4/2016
Table 5: Typical projects are scheduled for 2019-2020
Table 6: Typical projects under construction, 2019
Table 7: Typical projects under construction
Table 8: Typical Serviced Apartments in Hanoi, 2019
Table 9: Typical projects under construction in 2019
Table 10: Typical projects are open for sale
Table 11: Typical projects in the period 2018-2020
Table 12: Roadway infrastructure, 2017
Table 13: Major seaports in Vietnam
Table 14: Operational capacity of some major airways, 2016e
Table 15: Revenue and profit of AVC, 2017
Table 16: Electricity transmission and distribution network length, 2012 - 2017
Table 17: Electricity loss rate in some countries, 2011-2014
Table 18: The largest cities of Vietnam estimated in 2017
Table 19: 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: Construction cost in some major cities in ASEAN region, Q4/2016
Table 4: Utilities costs in some major cities in ASEAN, Q4/2016
Table 5: Typical projects are scheduled for 2019-2020
Table 6: Typical projects under construction, 2019
Table 7: Typical projects under construction
Table 8: Typical Serviced Apartments in Hanoi, 2019
Table 9: Typical projects under construction in 2019
Table 10: Typical projects are open for sale
Table 11: Typical projects in the period 2018-2020
Table 12: Roadway infrastructure, 2017
Table 13: Major seaports in Vietnam
Table 14: Operational capacity of some major airways, 2016e
Table 15: Revenue and profit of AVC, 2017
Table 16: Electricity transmission and distribution network length, 2012 - 2017
Table 17: Electricity loss rate in some countries, 2011-2014
Table 18: The largest cities of Vietnam estimated in 2017
Table 19: Top construction enterprises having the largest revenue in 2017
