The Prefabricated Building Market in Vietnam is expected to grow at a CAGR of approximately 4% during the forecast period driven by the increasing demand for affordable housing and upcoming projects and initiatives in the infrastructure and construction sector.
The increase in demand for prefabricated housing in the region, including manufactured housing, modular housing, precut housing, and panelized housing, is driven by a constant increase in the demand for housing across the country.
Vietnam's urban population was 37.3 % in 2020. Over the last 50 years, Vietnam's urban population has increased significantly from 18.4% to 37.3%, rising at an annual rate of 2.34% and declining to 1.94% in 2020. Vietnam's six main cities will have grown significantly by 2030. Over the next decade, the population of Ho Chi Minh City is expected to reach 11.1 million, growing by over 4 million. The population of Hanoi, the country's capital and second-largest city, is expected to reach 6.4 million, rising by 2.7 million.
Housing is a critical component of Vietnam's urbanization. In 2019, 27% of the urban population lived in substandard housing. By 2049, there will be 13.9 million more urban families, escalating the situation.
Key Market Trends
Government Policies Boosting the Market
The effect of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and European Union Vietnam Free Trade Agreement (EVFTA) is expected to propel Vietnam’s export of prefabricated buildings.
The prefabricated buildings feature high on Vietnam’s export list, along with lightings and furniture. The sector accounted for 4.4% of Vietnam’s exports in 2020. Such types of buildings are gaining in popularity not only in the commercial sector but also in the residential living space. The government wants the building materials sector to achieve a higher level of automation by 2030.
The Ministry of Construction has proposed a VND 30 trillion (USD 1.3 billion) credit package to build low-cost homes for workers. The package will help ensure social welfare for vulnerable people, enhance economic recovery and development, remove the difficulties plaguing enterprises, and support the development of the housing and the real estate market.
Increase in Urbanisation
The rapid urbanization, growing population, and booming economy of Vietnam are some of the factors causing strain on its natural resources. With the looming threat of climate change, the country’s immense coastline makes it susceptible to the effects and the rising sea levels.
Vietnam’s government has become aware of the repercussions and understands the importance of transforming its urban cities to be smarter and more sustainable.
Buildings, from planning to construction to user-stage, utilize vast amounts of resources. In Vietnam, buildings consume half of the country’s raw materials, 30 to 40% of its energy production, a quarter of its wood harvest, and 17% of its freshwater. The government’s decision to build green cities is crucial to ease up human activities that cause harm to the environment.
Going green not only benefits the environment, but it can also serve as a great investment for businesses. A report by the Green Infrastructure Investment Opportunities uncovered that green buildings exhibit huge investment potentials, adding approximately USD100 trillion globally between 2019 and 2030.
The report covers the major players operating in the Vietnam Prefabricated Buildings Industry. The market is highly competitive with a few players occupying the major share. The market is fragmented, and the market is expected to grow during the forecast period. Going forward, the prefabricated buildings industry in Vietnam is expected to remain stronger, with the formulated central government policy objectives and the need for affordable housing. The major market players include TLC Modular, BMB Steel, etc.
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Table of Contents
1.2 Scope of the Study
2.2 Research Phases
4.2 Technological Trends
4.3 Supply Chain/Value Chain Analysis of the Prefabricated Buildings Market
4.4 Brief on Different Structures Used in the Prefabricated Buildings Market
4.5 Cost Structure Analysis of the Prefabricated Buildings Market
4.6 Impact of COVID 19
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6.1.5 Other Material Types
6.2.3 Other Applications ( Industrial, Institutional, and Infrastructure)
7.2 Company Profiles
7.2.1 Best Metal Building and Accessory Joint Stock Company
7.2.2 Tran Duc Joint Stock Company
7.2.3 Qh Plus Phu My Co. Ltd.
7.2.4 Seico Steel Building Construction Joint Stock Company
7.2.5 Lien Son Thang Long Joint Stock Company
7.2.6 TLC Modular
7.2.7 Dai Dung Corporation Group
7.2.8 DTH Prefab
7.2.9 Quick Smart House
7.2.10 Zamil Steel Buildings Vietnam Co. Ltd
7.2.11 TDH Green Building Solution Co. Ltd.
7.2.12 VMSteel Joint Stock Company
7.2.13 Diamond Development Group*
9.2 Key Production, Consumption,Exports & import statistics of construction Materials
A selection of companies mentioned in this report includes:
- Best Metal Building and Accessory Joint Stock Company
- Tran Duc Joint Stock Company
- Qh Plus Phu My Co. Ltd.
- Seico Steel Building Construction Joint Stock Company
- Lien Son Thang Long Joint Stock Company
- TLC Modular
- Dai Dung Corporation Group
- DTH Prefab
- Quick Smart House
- Zamil Steel Buildings Vietnam Co. Ltd
- TDH Green Building Solution Co. Ltd.
- VMSteel Joint Stock Company
- Diamond Development Group*