PUBLISHER: China Research and Intelligence | PRODUCT CODE: 1280682
PUBLISHER: China Research and Intelligence | PRODUCT CODE: 1280682
Construction refers to the installation, maintenance and repair of buildings and other fixed structures, as well as the construction of roads and services that form an essential part of the structure and are required for its operation. Construction includes the process of constructing buildings, infrastructure and industrial facilities and related operations from start to finish. According to CRI's analysis, the Vietnam construction market can be divided by industry into commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction.
According to CRI's analysis, with the development of Vietnam's economy, the infrastructure construction and real estate sectors continue to grow, contributing to the growth of the construction industry.
Vietnam's construction industry output will grow by an average of 8.3% during 2018-2022 (with the largest increase of 12.9% in 2019). Vietnam's construction sector is the best performing sector in Asia Pacific. Despite losing momentum due to COVID-19, it continues to grow strongly in 2020, with construction output increasing by 6.8% year-on-year amid a 6.4% year-on-year increase in construction raw material prices. According to CRI's analysis, in 2022, Vietnam's construction output will be VND549 trillion (about $234.15 billion at current exchange rates), up 8.5% year-on-year.
According to CRI, the production value of construction industry will reach US$ 460.61 billion in 2032 and the CAGR in 2023 to 2032 is 7.0%.
Source: CRI
According to CRI, the construction industry in Vietnam is forecast to continue to grow from 2023-2032. Relatively cheap labor and land costs have attracted a large number of foreign investors to shift their production capacity to Vietnam, foreign trade has expanded, and the development of industrial real estate, commercial real estate and infrastructure sectors has boosted the construction industry. On the other hand, as Vietnam's economy grows, the real estate sector is also growing rapidly, contributing to the development of the construction industry.
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