Vietnam Construction Comprehensive Report Q1/2020
VIETNAM CONSTRUCTION INDUSTRY
While the Asian construction industry is showing signs of cooling down, the Chinese economic growth slowdown has indirectly impacted the construction industry of this country. A series of industries and input materials affected as cement, steel, … China accounts for a large proportion not only in the world construction industry but also in Asia so China’s influence on the market. School building area is huge. Meanwhile, in Europe and North America, the Construction market continued to remain unchanged, not growing for many years, due to the unstable economic situation in Europe and unsustainable 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 portion of 80% of nominal GDP, Vietnam is attracting a large and growing amount of foreign investment. With increasing demand for land and industrial plants, this segment will continue to be an attractive investment channel.
In the first 9 months, the retail market in Hanoi was gloomy, no new projects were launched, the operation situation did not change much compared to Q4/2018, while the HCMC market. HCM continues to increase retail supply, rental rates as well as occupancy rates are improved.
In the first 9 months of 2019, while the market for apartments for sale in Hanoi was active from abundant new supply to sales, the HCMC market. Ho Chi Minh City again reduced supply as well as sales due to limited land. However, the asking price of the city. Ho Chi Minh City increased sharply in Q3/2019 due to a number of high-end projects launched
In the transport infrastructure, roads and bridges lead to a contribution to the total value of the transport infrastructure industry, accounting for 56% of the total value in 2016. Vietnam’s seaport network includes consisting of many small and medium units, with inefficient distribution. The airport system in Vietnam is mostly operating below capacity
While the Asian construction industry is showing signs of cooling down, the Chinese economic growth slowdown has indirectly impacted the construction industry of this country. A series of industries and input materials affected as cement, steel, … China accounts for a large proportion not only in the world construction industry but also in Asia so China’s influence on the market. School building area is huge. Meanwhile, in Europe and North America, the Construction market continued to remain unchanged, not growing for many years, due to the unstable economic situation in Europe and unsustainable 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 portion of 80% of nominal GDP, Vietnam is attracting a large and growing amount of foreign investment. With increasing demand for land and industrial plants, this segment will continue to be an attractive investment channel.
In the first 9 months, the retail market in Hanoi was gloomy, no new projects were launched, the operation situation did not change much compared to Q4/2018, while the HCMC market. HCM continues to increase retail supply, rental rates as well as occupancy rates are improved.
In the first 9 months of 2019, while the market for apartments for sale in Hanoi was active from abundant new supply to sales, the HCMC market. Ho Chi Minh City again reduced supply as well as sales due to limited land. However, the asking price of the city. Ho Chi Minh City increased sharply in Q3/2019 due to a number of high-end projects launched
In the transport infrastructure, roads and bridges lead to a contribution to the total value of the transport infrastructure industry, accounting for 56% of the total value in 2016. Vietnam’s seaport network includes consisting of many small and medium units, with inefficient distribution. The airport system in Vietnam is mostly operating below capacity
Abbreviations
Summary
Business environment
1.1 Macroeconomic situation
1.2 Legal barrier
1.3 Economic agreements
World construction market
2.1 Scale and characteristics of world construction industry
2.2 Scale and characteristics of construction industry in the region
2.3 Current situation of world construction industry
Vietnam construction market
3.1 Overview of Vietnam’s construction industry
3.2 Input factors
3.3 Construction activities
3.4 Construction industry output
3.4.1 Housing of all kinds
3.4.2 House is not for living
3.4.3 Infrastructure
3.4.4 Specialized works
3.5 Industry risks
3.6 Driving forces of the industry
3.7 Planning and forecasting
3.7.1 Planning
3.7.2 Forecast
Enterprises
4.1 Business overview
4.2 Business analysis
Profitability
Solvency
Solvency
Performance
Profitability ratio
Appendix
Summary
Business environment
1.1 Macroeconomic situation
1.2 Legal barrier
1.3 Economic agreements
World construction market
2.1 Scale and characteristics of world construction industry
2.2 Scale and characteristics of construction industry in the region
2.3 Current situation of world construction industry
Vietnam construction market
3.1 Overview of Vietnam’s construction industry
3.2 Input factors
3.3 Construction activities
3.4 Construction industry output
3.4.1 Housing of all kinds
3.4.2 House is not for living
3.4.3 Infrastructure
3.4.4 Specialized works
3.5 Industry risks
3.6 Driving forces of the industry
3.7 Planning and forecasting
3.7.1 Planning
3.7.2 Forecast
Enterprises
4.1 Business overview
4.2 Business analysis
Profitability
Solvency
Solvency
Performance
Profitability ratio
Appendix
LIST OF CHARTS
Figure 1: Share of construction industry in GDP, 2013-2021f
Figure 2: GDP growth rate by quarter, 2016 – 2019
Figure 3: VND / USD exchange rate, 1 / 2013-9 / 2019
Figure 4: Construction value and infrastructure, 2010 – 2022f
Figure 5: Foreign direct investment in the first 6 months, 2012 – 2019
Figure 8: Structure of total real estate assets by region in 2015
Figure 9: GDP growth rate of regions in the world, 2000 – 2021f
Figure 10: World construction industry value, 2016-2022f
Figure 11: Average contribution of construction industry to world GDP, 2016-2022f
Figure 12: Value structure of world construction industry, 2010 – 2020f
Figure 13: Top cities with the largest gross profit margins in civil construction in the world in 2016
Figure 14: Value of Asia’s construction industry, 2013 – 2019f
Figure 15: Structure of construction value in Asia in 2014
Figure 16: Value structure of Asian construction market in 2014
Figure 17: World crude steel production, 2011-9 / 2019
Figure 18: World steel production structure, 2000 – 2018
Figure 21: World cement production, 2011 – 2018
Figure 22: Top 10 international contractors with the largest revenue in the world in 2015
Figure 23: Top 10 domestic contractors with the largest revenue in the world in 2015
Figure 24: Top 10 construction contractors with the largest revenue in the US, 2017
Figure 25: Revenue of Construction industry, 2010-2017
Figure 26: Number of employees in Construction industry, 2010-2017
Figure 27: Construction industry value, 2012-6M / 2017
Figure 28: Proportion of all economic sectors in the construction industry, 6M / 2017
Figure 29: 2018 rebar price movement
Figure 30: Cement selling price at factories of some cement companies, 6M / 2019
Figure 31: Cement retail price in regions, 6M / 2019
Figure 32: Labor productivity in Vietnam, 2006-2017
Figure 33: Labor productivity of economic sectors, 2016
Figure 34: Minimum wages 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 costs
Figure 40: Total supply by classification, 2015-9 September 2019
Figure 41: Rental price of apartments by grade, Q1 / 2015-Q3 / 2019
Figure 42: Rental price and capacity of apartments, Q1 / 2017-Q3 / 2019
Figure 43: Vacancy rate and rental price, 9M / 2019
Figure 44: Total supply of apartments for rent, Q1 / 2017-Q3 / 2019
Figure 45: Rental price of apartments by grade Q1 / 2017-Q3 / 2019
Figure 46: Housing supply in Hanoi, 2010-9T / 2019
Figure 47: Price movements of apartments, Q1 / 2011-Q3 / 2019
Figure 48: New supply and number of apartments sold, 2014-9T / 2019
Figure 49: Offering price of apartments in Ho Chi Minh City, Q1 / 2015-Q3 / 2019
Figure 50: Total of villas / townhouses, Q1 / 2017-Q3 / 2019
Figure 51: Price fluctuation of secondary villas and adjacent houses Q1 / 2015-Q3 / 2019
Figure 52: Villa / continuous supply, Q1 / 2016-Q3 / 2019
Figure 53: Total supply by classification, 9/2019
Figure 54: Supply structure by region, 9/2019
Figure 55: Vacancy rate and rental price, 9/2019
Figure 56: Supply of leasing centers, 2013-9T / 2019
Figure 57: Rental price and vacancy rate of shopping centers, 2014-9T / 2019
Figure 58: Total supply, 9/2019
Figure 59: Retail supply structure by region, 9/2019
Figure 60: Rental price and vacancy rate, Q3 / 2019
Figure 61: Total supply of shopping centers, 2013-9T / 2019
Figure 62: Rental rate and vacancy rate of Shopping Centers, 2013-9T / 2019
Figure 53: Structure of retail space by purpose, 2015
Figure 64: Structure of retail space by purpose, 2018
Figure 65: Total supply by region, 9M / 2019
Figure 66: Office rental price, Q1 / 2016-Q3 / 2019
Figure 67: Average price by region, Q3 / 2019
Figure 68: Office leasing structure by activity, 2018
Figure 69: Office supply and vacancy rate, Q1 / 2017-Q3 / 2019
Figure 70: Total supply and rents by grade, 9/2019
Figure 71: Office rental price, Q1 / 2016-Q3 / 2019
Figure 72: Office leasing structure by activity, 2018
Figure 73: Structure of coworking rental by type of business, 2018
Figure 74: Total hotel supply in Hanoi, Q1 / 2017-Q3 / 2019
Figure 75: Rental price and operating capacity, Q1 // 2017-Q3 / 2019
Figure 76: Total hotel supply in Ho Chi Minh City, Q1 / 2017-Q3 / 2019
Figure 77: Average room price and rental capacity, Q1 / 2017-Q3 / 2019
Figure 78: Total supply by region, 6M / 2019
Figure 79: Rental price by area, Q2 / 2019
Figure 80: Total supply and vacancy rate of Northern Industrial Zone, 6M / 2019
Figure 81: Average rent of Bac Bo Industrial Park, Q2 / 2019
Figure 82: Total supply and vacancy rate, Q2 / 2019
Figure 83: Rental price by region, Q2 / 2019
Figure 84: Vacancy rate, 2011-2018
Figure 85: Available factory rents, 2011 – 2018
Figure 86: Land rent by area, 2011 – 2018
Figure 87: Quality of infrastructure in Vietnam, 2011 – 2017
Figure 88: Infrastructure ranking index by country, 2017
Figure 89: Percentage of logistics costs in Vietnam’s GDP in 2016 compared to other regions, 2017-2018
Figure 90: Vietnam’s LPI ranking, 2010 – 2018
Figure 91: Number of BOT and BT projects under the management of the Ministry of Transport on roads
Figure 92: Loan balance of BOT and BT loans of the banking system, 2014 – 9M / 2017
Figure 93: Proportion of generation by supplier, 2017
Figure 94: Total palace, 2010 – 9M / 2019
Figure 95: Power loss, 2010 -9T / 2019
Figure 96: Structure of investment costs for infrastructure development in GDP, 1995 – 2013
Figure 97: Urbanization level, 2012 – 2018
Figure 98: Available income and household expenditure, 2008 – 2017f
Figure 99: Real estate outstanding credit, December 2012-12 / 2018
Figure 100: Structure of real estate outstanding credit, 2018
Figure 101: Structure of people by class stratification (expenditure), 2013 – 2020f
Figure 102: Forecast of steel consumption demand in Vietnam until 2020
Figure 103: Forecast of construction industry growth rate, 2016-2025f
Figure 104: Net revenue growth, 2017-2018
Figure 105: Gross profit growth, 2018
Figure 106: Solvency ratio, 2018
Figure 107: Receivables turnover, 2018
Figure 108: Solvency, 2018
Figure 109: Asset turnover ratio, 2017
Figure 110: Rotation of fixed assets, 2017
Figure 111: Administrative expenses / net revenue, 2017-2018
Figure 112: Interest expense / net revenue, 2017-2018
Figure 113: Profit ratio, 2018
Figure 1: Share of construction industry in GDP, 2013-2021f
Figure 2: GDP growth rate by quarter, 2016 – 2019
Figure 3: VND / USD exchange rate, 1 / 2013-9 / 2019
Figure 4: Construction value and infrastructure, 2010 – 2022f
Figure 5: Foreign direct investment in the first 6 months, 2012 – 2019
Figure 8: Structure of total real estate assets by region in 2015
Figure 9: GDP growth rate of regions in the world, 2000 – 2021f
Figure 10: World construction industry value, 2016-2022f
Figure 11: Average contribution of construction industry to world GDP, 2016-2022f
Figure 12: Value structure of world construction industry, 2010 – 2020f
Figure 13: Top cities with the largest gross profit margins in civil construction in the world in 2016
Figure 14: Value of Asia’s construction industry, 2013 – 2019f
Figure 15: Structure of construction value in Asia in 2014
Figure 16: Value structure of Asian construction market in 2014
Figure 17: World crude steel production, 2011-9 / 2019
Figure 18: World steel production structure, 2000 – 2018
Figure 21: World cement production, 2011 – 2018
Figure 22: Top 10 international contractors with the largest revenue in the world in 2015
Figure 23: Top 10 domestic contractors with the largest revenue in the world in 2015
Figure 24: Top 10 construction contractors with the largest revenue in the US, 2017
Figure 25: Revenue of Construction industry, 2010-2017
Figure 26: Number of employees in Construction industry, 2010-2017
Figure 27: Construction industry value, 2012-6M / 2017
Figure 28: Proportion of all economic sectors in the construction industry, 6M / 2017
Figure 29: 2018 rebar price movement
Figure 30: Cement selling price at factories of some cement companies, 6M / 2019
Figure 31: Cement retail price in regions, 6M / 2019
Figure 32: Labor productivity in Vietnam, 2006-2017
Figure 33: Labor productivity of economic sectors, 2016
Figure 34: Minimum wages 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 costs
Figure 40: Total supply by classification, 2015-9 September 2019
Figure 41: Rental price of apartments by grade, Q1 / 2015-Q3 / 2019
Figure 42: Rental price and capacity of apartments, Q1 / 2017-Q3 / 2019
Figure 43: Vacancy rate and rental price, 9M / 2019
Figure 44: Total supply of apartments for rent, Q1 / 2017-Q3 / 2019
Figure 45: Rental price of apartments by grade Q1 / 2017-Q3 / 2019
Figure 46: Housing supply in Hanoi, 2010-9T / 2019
Figure 47: Price movements of apartments, Q1 / 2011-Q3 / 2019
Figure 48: New supply and number of apartments sold, 2014-9T / 2019
Figure 49: Offering price of apartments in Ho Chi Minh City, Q1 / 2015-Q3 / 2019
Figure 50: Total of villas / townhouses, Q1 / 2017-Q3 / 2019
Figure 51: Price fluctuation of secondary villas and adjacent houses Q1 / 2015-Q3 / 2019
Figure 52: Villa / continuous supply, Q1 / 2016-Q3 / 2019
Figure 53: Total supply by classification, 9/2019
Figure 54: Supply structure by region, 9/2019
Figure 55: Vacancy rate and rental price, 9/2019
Figure 56: Supply of leasing centers, 2013-9T / 2019
Figure 57: Rental price and vacancy rate of shopping centers, 2014-9T / 2019
Figure 58: Total supply, 9/2019
Figure 59: Retail supply structure by region, 9/2019
Figure 60: Rental price and vacancy rate, Q3 / 2019
Figure 61: Total supply of shopping centers, 2013-9T / 2019
Figure 62: Rental rate and vacancy rate of Shopping Centers, 2013-9T / 2019
Figure 53: Structure of retail space by purpose, 2015
Figure 64: Structure of retail space by purpose, 2018
Figure 65: Total supply by region, 9M / 2019
Figure 66: Office rental price, Q1 / 2016-Q3 / 2019
Figure 67: Average price by region, Q3 / 2019
Figure 68: Office leasing structure by activity, 2018
Figure 69: Office supply and vacancy rate, Q1 / 2017-Q3 / 2019
Figure 70: Total supply and rents by grade, 9/2019
Figure 71: Office rental price, Q1 / 2016-Q3 / 2019
Figure 72: Office leasing structure by activity, 2018
Figure 73: Structure of coworking rental by type of business, 2018
Figure 74: Total hotel supply in Hanoi, Q1 / 2017-Q3 / 2019
Figure 75: Rental price and operating capacity, Q1 // 2017-Q3 / 2019
Figure 76: Total hotel supply in Ho Chi Minh City, Q1 / 2017-Q3 / 2019
Figure 77: Average room price and rental capacity, Q1 / 2017-Q3 / 2019
Figure 78: Total supply by region, 6M / 2019
Figure 79: Rental price by area, Q2 / 2019
Figure 80: Total supply and vacancy rate of Northern Industrial Zone, 6M / 2019
Figure 81: Average rent of Bac Bo Industrial Park, Q2 / 2019
Figure 82: Total supply and vacancy rate, Q2 / 2019
Figure 83: Rental price by region, Q2 / 2019
Figure 84: Vacancy rate, 2011-2018
Figure 85: Available factory rents, 2011 – 2018
Figure 86: Land rent by area, 2011 – 2018
Figure 87: Quality of infrastructure in Vietnam, 2011 – 2017
Figure 88: Infrastructure ranking index by country, 2017
Figure 89: Percentage of logistics costs in Vietnam’s GDP in 2016 compared to other regions, 2017-2018
Figure 90: Vietnam’s LPI ranking, 2010 – 2018
Figure 91: Number of BOT and BT projects under the management of the Ministry of Transport on roads
Figure 92: Loan balance of BOT and BT loans of the banking system, 2014 – 9M / 2017
Figure 93: Proportion of generation by supplier, 2017
Figure 94: Total palace, 2010 – 9M / 2019
Figure 95: Power loss, 2010 -9T / 2019
Figure 96: Structure of investment costs for infrastructure development in GDP, 1995 – 2013
Figure 97: Urbanization level, 2012 – 2018
Figure 98: Available income and household expenditure, 2008 – 2017f
Figure 99: Real estate outstanding credit, December 2012-12 / 2018
Figure 100: Structure of real estate outstanding credit, 2018
Figure 101: Structure of people by class stratification (expenditure), 2013 – 2020f
Figure 102: Forecast of steel consumption demand in Vietnam until 2020
Figure 103: Forecast of construction industry growth rate, 2016-2025f
Figure 104: Net revenue growth, 2017-2018
Figure 105: Gross profit growth, 2018
Figure 106: Solvency ratio, 2018
Figure 107: Receivables turnover, 2018
Figure 108: Solvency, 2018
Figure 109: Asset turnover ratio, 2017
Figure 110: Rotation of fixed assets, 2017
Figure 111: Administrative expenses / net revenue, 2017-2018
Figure 112: Interest expense / net revenue, 2017-2018
Figure 113: Profit ratio, 2018
LIST OF TABLES
Table 1: Top 10 construction machine manufacturers worldwide, 2017
Table 2: Top 10 largest construction contractors in the world, 2016
Table 3: Steel output in the top 10 countries leading 9M / 2018-9T / 2019
Table 4: List of 10 largest steel producers in the world, 2016 – 2017
Table 5: Cement production output of some countries, 2018
Table 6: The world’s largest cement companies, 2018
Table 7: Top 20 real estate companies with the largest total assets in the world in 2016
Table 8: Construction costs in some major cities in ASEAN region, Q4 / 2016
Table 9: Utility costs in a major city in ASEAN, Q4 / 2016
Table 10: Typical serviced apartments in Hanoi in 2019
Table 11: Typical projects are scheduled to be completed in 2019
Table 12: Typical projects are scheduled to be completed in the near future
Table 13: Typical projects under construction are expected to be completed in the period of 2019-2020
Table 14: Outstanding office leases in Q3 / 2019
Table 15: Typical projects are scheduled to be completed, 2019
Table 16: Large office transactions (> 1000m2) in Hanoi, 2018
Table 7: Typical projects under construction
Table 18: Large office leasing transactions in the city. HCM, 2018
Table 19: Outstanding projects in the period 2019-2020
Table 20: Outstanding projects in Ho Chi Minh City HCM in the period 2019-2025
Table 21: Quality of infrastructure in Vietnam, 2011-2017
Table 22: Vietnam road transport system, 2018e
Table 23: Data of main railway lines, stations, minor roads, 2015-2018
Table 24: Logistics costs of some exports
Table 25: Ranking by LPI activities of Vietnam over the years, 2012-2018
Table 26: Important seaports in Vietnam
Table 27: Ship handling capacity of Vietnamese seaports
Table 28: Operational capacity of some major airports, 2016e
Table 29: ACV’s revenue and profit in 2018
Table 30: Length of transmission grid and total distribution capacity, 2011 – 2017
Table 31: Power loss rate of some countries, 2018
Table 32: Results of reducing power loss in 2017-2018
Table 33: Vietnam’s largest cities estimated in 2018
Table 34: Top construction enterprises with the largest revenue in 2018
Table 1: Top 10 construction machine manufacturers worldwide, 2017
Table 2: Top 10 largest construction contractors in the world, 2016
Table 3: Steel output in the top 10 countries leading 9M / 2018-9T / 2019
Table 4: List of 10 largest steel producers in the world, 2016 – 2017
Table 5: Cement production output of some countries, 2018
Table 6: The world’s largest cement companies, 2018
Table 7: Top 20 real estate companies with the largest total assets in the world in 2016
Table 8: Construction costs in some major cities in ASEAN region, Q4 / 2016
Table 9: Utility costs in a major city in ASEAN, Q4 / 2016
Table 10: Typical serviced apartments in Hanoi in 2019
Table 11: Typical projects are scheduled to be completed in 2019
Table 12: Typical projects are scheduled to be completed in the near future
Table 13: Typical projects under construction are expected to be completed in the period of 2019-2020
Table 14: Outstanding office leases in Q3 / 2019
Table 15: Typical projects are scheduled to be completed, 2019
Table 16: Large office transactions (> 1000m2) in Hanoi, 2018
Table 7: Typical projects under construction
Table 18: Large office leasing transactions in the city. HCM, 2018
Table 19: Outstanding projects in the period 2019-2020
Table 20: Outstanding projects in Ho Chi Minh City HCM in the period 2019-2025
Table 21: Quality of infrastructure in Vietnam, 2011-2017
Table 22: Vietnam road transport system, 2018e
Table 23: Data of main railway lines, stations, minor roads, 2015-2018
Table 24: Logistics costs of some exports
Table 25: Ranking by LPI activities of Vietnam over the years, 2012-2018
Table 26: Important seaports in Vietnam
Table 27: Ship handling capacity of Vietnamese seaports
Table 28: Operational capacity of some major airports, 2016e
Table 29: ACV’s revenue and profit in 2018
Table 30: Length of transmission grid and total distribution capacity, 2011 – 2017
Table 31: Power loss rate of some countries, 2018
Table 32: Results of reducing power loss in 2017-2018
Table 33: Vietnam’s largest cities estimated in 2018
Table 34: Top construction enterprises with the largest revenue in 2018
