Concrete is used in construction as structural
material consisting of a hard, chemically inert particulate substance, known as
aggregate which is usually sand and gravel, that is bonded together by cement
and water. Concrete is resistant to fire, wind, water, vibrations, and
earthquakes, keeping people safer and reducing costs. Concrete structures have
proven to be the most resilient. Ready mix concrete can be used for multiple
applications including civil engineering projects, road developments,
foundations, bridges, walls, floors & bases, driveways, footpaths. The
primary advantages of using ready mix concrete include a high-quality product,
an eco-friendly process, and saving time for your business. One of the major
factors driving the growth of the Vietnam concrete market is the increasing usage
of concrete in the infrastructure sector.
Eco-friendly concrete that is manufactured
using waste or residual materials from different industries, and requires less
amount of energy for production. Compared to traditional concrete, it produces
less carbon dioxide, and is considered cheap and more durable. The eco-friendly
concrete can reduce CO2 emissions and boost a building’s durability. Manufacturers produced the concrete by
slashing the amount of cement to 50 percent and increasing the shares of fly
ash and blast-furnace slag powder to 20 and 30 percent, respectively. As a
result, the companies are developing concrete that lowered the hydration heat
generated in the process of concrete hardening by 10°C compared to the existing
combination, and improved the long-term strength of concrete after 90 days by
20%. For instance, in 2021, Lotte Engineering & Construction (Lotte
E&C) successfully placed 46,000 cubic meters of eco-friendly concrete for
the foundation work of Lotte Mall Hanoi, which is under construction in Hanoi,
Vietnam. According to the Ministry of Construction, the development of
Vietnam's eco-friendly construction materials and solutions to help the sector
become sustainable in the future. The sector has made significant progress.
Investments are being done in modern technology and machinery to produce a wide
variety of products. Furthermore, as per the Vietnam Green Building Council
(VGBC) the number of green buildings in Vietnam is modest, it reached 150 by
the end of 2019. All building types, including commercial, institutional, and
residential, use a significant proportion of a country’s resources in their
lifespan. In Vietnam, buildings use 17 percent of the country’s fresh-water, a
quarter of its wood harvest, 30-40 percent of its energy production, and a half
of its raw materials.
Vietnam hugely investing on developing road and
bridge projects in a bid to further develop its growing economy. A series of
PPP road projects are being planned, while an important bridge link will be
built in due course. The investor for the Thu Thiem 4 Bridge project in Ho Chi
Minh City (HCMC) is to be selected shortly. The bridge construction project
will be handled under the PPP model. Measuring 2.2km in length, the Thu Thiem 4
Bridge will link HCMC’s District 2 and District 7. Design work for the bridge has
yet to be completed. Vietnam’s Government approved the country’s road
development plan for 2021-2030. The plan aims to build over 5,000 kilometres
(km) of expressways by 2030, up from 3,841km in 2021. Also, Vietnam intends to
build 172 national highway routes with a total length of 29,795km by 2030,
compared to 5,474km in 2021. It also plans to build 3,034km coastal roads going
across 28 cities and provinces. According to the Ministry of Planning and
Investment (MPI), in 2021, most Vietnam’s northern localities have suffered
under the pandemic, so numerous economic indicators will not be able to reach
the plan set forth. However, some of them could reach or even surpass the
targets. Quang Ninh is aiming for a growth at 10.5 per cent in 2022, while Bac Ninh
aims for 6.45 per cent, Ninh Binh 8 per cent, Nam Dinh 8.5 per cent, and Ha Nam
for 9.3 per cent. The Vietnam city construction project is moving forward with
a great speed in 2022. For instance, the Empire City project has been
progressing at a steady pace, with residents moving into the first lot of
towers. And the Hyatt Place Hyatt House Tower is scheduled to start
construction in 2022. The 69-floor/275-metre tower is part of the Eco Green Sai
Gaon project, which is partially completed with some apartments having been
finished. Thus, with all the ongoing and upcoming construction and
infrastructure development projects, the Vietnam concrete market is expected to
grow at a rapid pace in the forecast period.
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Vietnam Concrete Market Growth Driver
Increasing Government Initiative
Related to Infrastructure Development.
The government initiation plays a vital role
in the development of any sector. The investment by the government helps to
boost the market demand. According to Department of International Trade,
Vietnam spends 5.7% of GDP on infrastructure which is the highest in Southeast
Asia in 2021. Development of hotels, resorts and mixed use buildings/
residential is expanding rapidly. The sector is dominated by major local
private developers. Infrastructure has been a central factor in
Vietnam’s fast-paced economic development. However, economic growth is putting
increasing pressure on Vietnam’s infrastructure. By 2030, Viet Nam will need an
estimated US$237 billion for infrastructure investments to achieve the
Sustainable Development Goals. To fund this investment, the Global Infrastructure
Hub estimates that Vietnam will need to mobilize an estimated $49 billion above
what it has historically spent. Various expressway projects are planned and
underway to improve connectivity within major cities. There are 44 planed PPP
projects with total investment value worth up to US$ 120 billion in the road infrastructure
sectors. Furthermore, the Vietnamese government has estimated requirement for
airport infrastructure during the next five years will be twice what it was in
the past five years. According to Airports Corporation of Vietnam (ACV), US$1
billion has been invested in expanding airport infrastructure over the past
five years to support passenger and cargo growth, but that it will need
approximately US$5.2 billion from 2021 to 2025 to complete infrastructure
projects. Since, concretes are widely use in building infrastructure including
airports, thus growth in infrastructure of Vietnam will positively impact the
Vietnam concrete market. Thus, this will further fuel the growth of the Vietnam
concrete market over the forecast period.
The Major Players in this Market Include
Technology launches,
acquisitions, and R&D activities are key strategies adopted by players in
the Vietnam concrete market. Major players in the Vietnam concrete market are
Siam City Cement Vietnam, Sino Pacific Construction Consultancy Co., Ltd, Le Phan
Construction Company (Ltd), Hong Ha Beton JSC, Concrete Corporation RACH, Vicem
Hoang Mai Cement Joint Stock Company, Fico Pan-United Concrete Joint Stock
Company (Fico Panu), Hùng Anh International, Saigon Manufacturing and Trading
Joint Stock Company (SMC), Eblock Jsc Vietnam and Others. In January 2022, FiCO
Pan-United Concrete Joint Stock Company ("FiCO PanU"), a subsidiary
of Singapore-listed Pan-United Corporation Ltd, has strengthened its
longstanding working relationship with Novaland Group ("Novaland") by
signing a 2022-2024 cooperation agreement under which FiCO PanU will provide
sustainable concrete solutions to Novaland, a leading prestigious brand in the
real estate investment and development industry in Vietnam.
COVID-19 had slightly reduced
production activities in Vietnam due to shortage of labor, and the decline of
supply and demand chain, which had temporarily affected the market in 2020.
However, initiatives from the Vietnam government in order to encourage private
and foreign investment in the country’s construction projects are creating
opportunities for growth of the concrete market in Vietnam since 2021.
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