Construction Standard Report Q2/2019
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.
Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy. With an export-oriented economy, with exports accounting for a significant proportion of 80% of GDP, Vietnam is attracting a large and growing number of foreign investment. With increasing demand for land and industrial plants, this segment will continue to be an attractive investment channel.
In the first 3 months of the year, the retail market in Hanoi was gloomy, no new projects were launched, the situation did not change much compared to Q4/2018, while the retail supply of HCM.City market continued to increase , the rental prices as well as occupancy rates are improved.
In the first 3 months of 2019, while the apartment market for sale in Hanoi was vibrant due to the plentiful new supply to the market, Ho Chi Minh City also experienced a decrease in supply as well as sales due to the limited land fund. However, the price offered by HCM. City increased strongly in Q1/2019 due to some projects in the high-end segment marketed.
In transport infrastructure, roads and bridges contribute to the total value of the transport infrastructure industry, accounting for 56% of the total value in 2016. Vietnam's seaport network consists of many small and medium units with inefficient distribution. Most airports in Vietnam are operating under capacity.
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.
Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy. With an export-oriented economy, with exports accounting for a significant proportion of 80% of GDP, Vietnam is attracting a large and growing number of foreign investment. With increasing demand for land and industrial plants, this segment will continue to be an attractive investment channel.
In the first 3 months of the year, the retail market in Hanoi was gloomy, no new projects were launched, the situation did not change much compared to Q4/2018, while the retail supply of HCM.City market continued to increase , the rental prices as well as occupancy rates are improved.
In the first 3 months of 2019, while the apartment market for sale in Hanoi was vibrant due to the plentiful new supply to the market, Ho Chi Minh City also experienced a decrease in supply as well as sales due to the limited land fund. However, the price offered by HCM. City increased strongly in Q1/2019 due to some projects in the high-end segment marketed.
In transport infrastructure, roads and bridges contribute to the total value of the transport infrastructure industry, accounting for 56% of the total value in 2016. Vietnam's seaport network consists of many small and medium units with inefficient distribution. Most airports in Vietnam are operating under capacity.
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 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 are scheduled for 2019-2020
Table 7: Typical projects under construction, 2019
Table 8: Typical projects under construction
Table 9: Major office leasing transactions in Ho Chi Minh City HCM, 2018
Table 10: Typical Serviced Apartments in Hanoi, 2019
Table 11:Typical projects under construction in 2019
Table 12: Typical projects are projected to complete
Table 13: Typical projects are expected to be completed in the near future
Table 14: Typical projects in the period 2018-2020
Table 15: Typical projects in the period 2018-2025
Table 16: Roadway infrastructure, 2017
Table 17: Major seaports in Vietnam
Table 18: Ability of receiving ships of Vietnamese ports
Table 19: Operational capacity of some major airways, 2016e
Table 20: Revenue and profit of AVC, 2018
Table 21: Electricity transmission and distribution network length, 2012 - 2017
Table 22: Electricity loss rate in some countries, 2018
Table 23: The largest cities of Vietnam
Table 24: Estimated in 2018
Table 25: Top construction enterprises having the largest revenue in 2018
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 are scheduled for 2019-2020
Table 7: Typical projects under construction, 2019
Table 8: Typical projects under construction
Table 9: Major office leasing transactions in Ho Chi Minh City HCM, 2018
Table 10: Typical Serviced Apartments in Hanoi, 2019
Table 11:Typical projects under construction in 2019
Table 12: Typical projects are projected to complete
Table 13: Typical projects are expected to be completed in the near future
Table 14: Typical projects in the period 2018-2020
Table 15: Typical projects in the period 2018-2025
Table 16: Roadway infrastructure, 2017
Table 17: Major seaports in Vietnam
Table 18: Ability of receiving ships of Vietnamese ports
Table 19: Operational capacity of some major airways, 2016e
Table 20: Revenue and profit of AVC, 2018
Table 21: Electricity transmission and distribution network length, 2012 - 2017
Table 22: Electricity loss rate in some countries, 2018
Table 23: The largest cities of Vietnam
Table 24: Estimated in 2018
Table 25: Top construction enterprises having the largest revenue in 2018
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, 2012-6M/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, Q1/2019
Figure 23: Supply structure by region, Q1/2019
Figure 24: Vacancy rate and rental price, Q1/2019
Figure 25: Supply of commercial center for lease, 2013-Q1/2019
Figure 26: Rental price and vacancy rate of commercial centers, 2014-Q1/2019
Figure 27: Total supply, Q1/2019
Figure 28: Retail supply structure by region, Q1/2019
Figure 29: Vacancy rate and rental price, Q1/2019
Figure 30: Total supply of commercial centers, 2013- Q1/2019
Figure 31: Rental price and vacancy rate of commercial centers, 2013 - Q1/2019
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, 2014 - Q1/2019
Figure 35: Total supply by region, Q1/2019
Figure 36: Office rental price, Q1/2016-Q1/2019
Figure 37: Average rental price by area, Q1/2019
Figure 38: Large office transactions (> 1,000m²) in Hanoi, 2018
Figure 39: Structure of office leasing according to business lines, 2018
Figure 40: Office supply and vacancy rate , Q1/2017-Q1/2019
Figure 41: Total supply and rental price by category, Q1/2019
Figure 42: Office rental price, Q1/2016-Q1/2019
Figure 43: Structure of office leasing according to business lines, 2018
Figure 44: Co-working leasing structure by type of business, 2018
Figure 45: Total Supply by Category, 2005-2018
Figure 46: Apartment rental price by category, Q1/2015-Q4/2018
Figure 47: Apartment rental price and rental capacity, Q1/2015-Q4/2018
Figure 48: Total supply of apartments for rent, Q1/2015-Q4/2018
Figure 49: Apartment rental prices by class, Q4/2016-Q4/2018
Figure 50: Housing supply in Hanoi, 2010-Q1/2019
Figure 51: Price fluctuation of apartment for sale, Q1/2011 – Q1/2019
Figure 52: New supply and number of apartments sold, 2014-Q1/2019
Figure 53: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q1/2019
Figure 54: High-end apartment segment's price, 2013-Q1/2019
Figure 55: Structure of buying houses by purpose in HCM, 2016
Figure 56: Lending rates of commercial banks, Q4/2018
Figure 57: Total villa/townhouse supply, Q1/2017-Q1/2019
Figure 58: Price fluctuation of villas and townhouses, Q1/2015-Q1/2019
Figure 59: Total villa/townhouse supply, Q1/2016-Q1/2019
Figure 60: Hotel total supply, Q1/2017-Q1/2019
Figure 61: Rental price and capacity, Q1/2017-Q1/2019
Figure 62: Hotel total supply, Q1/2016 – Q4/2018
Figure 63: Rental price and capacity, Q1/2019
Figure 64: Average rental price and capacity, Q1/2017-Q1/2019
Figure 65: Total Supply by Region, Q1/2019
Figure 66: Rental price by area, Q1/2019
Figure 67: Total supply and vacancy rate of Northern Industrial Zone, Q1/2019
Figure 68: Average rental price for the Northern Industrial Zone, Q1/2019
Figure 69: Total supply and vacancy rate, Q1/2019
Figure 70: Rental price by area, Q1/2019
Figure 71: Vacancy rate, 2011-2018
Figure 72: Rental price for factories available, 2011 - 2018
Figure 73: Rental price for land by area, 2011 – 2018
Figure 74: Quality of Infrastructure in Vietnam, 2011-2017
Figure 75: Infrastructure Rank by Country, 2017
Figure 76: Investment capital for various types of transportation, 2010 - 2015
Figure 77: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 78: LPI of Vietnam, 2010 - 2018x
Figure 79: The outstanding balance of BOT and BT credit of the banking system, 2014 – 9M/2017
Figure 80: Proportion of power generation by supplier, 2017
Figure 81: Total electricity supply, 2010 – 3M/2019
Figure 82: Structure of electricity production, 2017
Figure 83: Power loss, 2010 – 3M/2019
Figure 84: Rate of Electricity losses in the supply chain, 2010 - 2017
Figure 85: Structure of Investment Costs for Infrastructure Development in GDP, 1995 - 2013
Figure 86: Urbanization levels, 2010 - 2018
Figure 87: Disposable income and household spending, 2008 – 2017f
Figure 88: Real estate outstanding credit, 2012-2018
Figure 89: Structure of real estate outstanding credit, 2018
Figure 90: Structure of population by class (expenditure), 2013 - 2020f
Figure 91: Net revenue growth, 2017-2018
Figure 92: Gross profit growth, 2018
Figure 93: Solvency, 2018
Figure 94: Accounts receivable turnover, 2018
Figure 95: Affordability of enterprises, 2018
Figure 96: Total asset turnover, 2018
Figure 97: Fixed asset turnover, 2018
Figure 98: Administrative expenses/net revenue, 2017-2018
Figure 99: Interest expenses/net revenue, 2017-2018
Figure 100: Profit ratio, 2018
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, 2012-6M/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, Q1/2019
Figure 23: Supply structure by region, Q1/2019
Figure 24: Vacancy rate and rental price, Q1/2019
Figure 25: Supply of commercial center for lease, 2013-Q1/2019
Figure 26: Rental price and vacancy rate of commercial centers, 2014-Q1/2019
Figure 27: Total supply, Q1/2019
Figure 28: Retail supply structure by region, Q1/2019
Figure 29: Vacancy rate and rental price, Q1/2019
Figure 30: Total supply of commercial centers, 2013- Q1/2019
Figure 31: Rental price and vacancy rate of commercial centers, 2013 - Q1/2019
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, 2014 - Q1/2019
Figure 35: Total supply by region, Q1/2019
Figure 36: Office rental price, Q1/2016-Q1/2019
Figure 37: Average rental price by area, Q1/2019
Figure 38: Large office transactions (> 1,000m²) in Hanoi, 2018
Figure 39: Structure of office leasing according to business lines, 2018
Figure 40: Office supply and vacancy rate , Q1/2017-Q1/2019
Figure 41: Total supply and rental price by category, Q1/2019
Figure 42: Office rental price, Q1/2016-Q1/2019
Figure 43: Structure of office leasing according to business lines, 2018
Figure 44: Co-working leasing structure by type of business, 2018
Figure 45: Total Supply by Category, 2005-2018
Figure 46: Apartment rental price by category, Q1/2015-Q4/2018
Figure 47: Apartment rental price and rental capacity, Q1/2015-Q4/2018
Figure 48: Total supply of apartments for rent, Q1/2015-Q4/2018
Figure 49: Apartment rental prices by class, Q4/2016-Q4/2018
Figure 50: Housing supply in Hanoi, 2010-Q1/2019
Figure 51: Price fluctuation of apartment for sale, Q1/2011 – Q1/2019
Figure 52: New supply and number of apartments sold, 2014-Q1/2019
Figure 53: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q1/2019
Figure 54: High-end apartment segment's price, 2013-Q1/2019
Figure 55: Structure of buying houses by purpose in HCM, 2016
Figure 56: Lending rates of commercial banks, Q4/2018
Figure 57: Total villa/townhouse supply, Q1/2017-Q1/2019
Figure 58: Price fluctuation of villas and townhouses, Q1/2015-Q1/2019
Figure 59: Total villa/townhouse supply, Q1/2016-Q1/2019
Figure 60: Hotel total supply, Q1/2017-Q1/2019
Figure 61: Rental price and capacity, Q1/2017-Q1/2019
Figure 62: Hotel total supply, Q1/2016 – Q4/2018
Figure 63: Rental price and capacity, Q1/2019
Figure 64: Average rental price and capacity, Q1/2017-Q1/2019
Figure 65: Total Supply by Region, Q1/2019
Figure 66: Rental price by area, Q1/2019
Figure 67: Total supply and vacancy rate of Northern Industrial Zone, Q1/2019
Figure 68: Average rental price for the Northern Industrial Zone, Q1/2019
Figure 69: Total supply and vacancy rate, Q1/2019
Figure 70: Rental price by area, Q1/2019
Figure 71: Vacancy rate, 2011-2018
Figure 72: Rental price for factories available, 2011 - 2018
Figure 73: Rental price for land by area, 2011 – 2018
Figure 74: Quality of Infrastructure in Vietnam, 2011-2017
Figure 75: Infrastructure Rank by Country, 2017
Figure 76: Investment capital for various types of transportation, 2010 - 2015
Figure 77: Percentage of logistic costs in 2016 GDP of Vietnam compared to other countries
Figure 78: LPI of Vietnam, 2010 - 2018x
Figure 79: The outstanding balance of BOT and BT credit of the banking system, 2014 – 9M/2017
Figure 80: Proportion of power generation by supplier, 2017
Figure 81: Total electricity supply, 2010 – 3M/2019
Figure 82: Structure of electricity production, 2017
Figure 83: Power loss, 2010 – 3M/2019
Figure 84: Rate of Electricity losses in the supply chain, 2010 - 2017
Figure 85: Structure of Investment Costs for Infrastructure Development in GDP, 1995 - 2013
Figure 86: Urbanization levels, 2010 - 2018
Figure 87: Disposable income and household spending, 2008 – 2017f
Figure 88: Real estate outstanding credit, 2012-2018
Figure 89: Structure of real estate outstanding credit, 2018
Figure 90: Structure of population by class (expenditure), 2013 - 2020f
Figure 91: Net revenue growth, 2017-2018
Figure 92: Gross profit growth, 2018
Figure 93: Solvency, 2018
Figure 94: Accounts receivable turnover, 2018
Figure 95: Affordability of enterprises, 2018
Figure 96: Total asset turnover, 2018
Figure 97: Fixed asset turnover, 2018
Figure 98: Administrative expenses/net revenue, 2017-2018
Figure 99: Interest expenses/net revenue, 2017-2018
Figure 100: Profit ratio, 2018
