Vietnam Concrete Market Overview
Vietnam concrete market size is forecast to reach US$5.8 billion by 2027 after growing at a CAGR of 7.9% during 2022-2027. 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 use of ready mix concrete in the infrastructure and building & construction sector.
Impact of Covid-19
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.
Report Coverage
The report “Vietnam Concrete Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Vietnam concrete industry.
Key Takeaways
- Ha Noi city dominated the Vietnam concrete market due to the rising usage of concrete products such as ready mixed concrete, rapid drying concrete, wet mix concrete, and others, in the growing building and construction activities.
- An increase in development of high-rise structures can raise the demand for high-strength concrete, owing to its properties and benefits. This is further expected to raise the growth of the concrete market in Vietnam.
- Rising investments and inclining growth of the infrastructure sector would also drive the market growth in the forecast period.
- Additionally, companies have been constantly focusing on developing or expanding on the ready-mix concrete due to increasing demand from the construction site where mixing of concrete is not possible at the site. For instance, in 2021 the two plants of FiCO PanU, a joint venture between the Singapore-based Pan-United Corporation (Pan-United) and Vietnam's FiCO Corporation - will collectively supply about 700,000 cubic meters of ready-mix concrete to the Aqua City development over a 2 and 1/2-year, Pan-United said.
Figure: Vietnam Concrete Market Revenue Share, by End Use 2021 (%)
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Vietnam Concrete Market Segment Analysis – By Concrete Type
High strength concrete held the largest share in the Vietnam concrete market in 2021. High strength concrete is a type of concrete with a specified characteristic cube strength that lies between 60 to 100 N/mm2, or more. It has a compressive strength greater than 6000 psi or 42 MPa. It is capable of resisting loads that cannot be resisted by normal-strength concrete. Moreover, it has an increased modulus of elasticity, which also increases the overall stability and reduces deflections in comparison to stamped concrete, self-consolidating concrete, limecrete, and other types of concrete. These properties of high strength concrete make it ideal for use in applications that must resist high compressive loads which include the erection of high-rise structures, and components such as shear walls, columns (particularly on lower floors where the load is greatest), and foundations. In August 2020, the people’s committee of Ho Chi Minh City in Vietnam announced a new housing high-rise condominium project along with the completion of 2,200 houses by the end of 2022. This is expected to increase the demand for concrete for use in structural elements of the high-rise structure such as walls, columns, foundations, and more.
Vietnam Concrete Market Segment Analysis -By End Use
Building and Construction held the largest share with 55% in the Vietnam concrete market in 2021 and is anticipated to grow at a CAGR of 8.9% during the forecast period 2022-2027. Concrete is used in construction of residential buildings such as independent houses, row houses, and apartments along with construction of commercial structures that include airports, office buildings, hospitals, schools, and more. An increase in the building and construction activities from the residential and commercial sectors in Vietnam is increasing the demand for concrete, which is driving the growth of the market. According to the General Statistics Office (GSO) of Vietnam, building & construction industry recorded a growth of 5.7% during the third quarter of 2020, and up to 5.5% during the fourth quarter of 2020. Furthermore, in order to encourage the private investors, the government is also offering incentives to developers for construction of affordable houses and has set aside US$1.3 billion for the construction of affordable houses in the country during the period of 2018 to 2022. Such initiatives and investments from the government for construction and development projects across the country is expected to increase the demand for concrete, thus, leading to the growth of the Vietnam concrete market.
Vietnam Concrete Market Segment Analysis – By City
Ha Noi city dominated the Vietnam concrete market in terms of revenue and is projected to rise with a CAGR of 9.2% during the forecast period (2022-2027). Building and construction industry is one of the key industries in Ha Noi, it is Vietnam's capital and the largest economy in the Northern Key Economic Region (KER) in Vietnam. In industrial new establishment concrete is utilized in walls, foundation base, side columns, and more because once poured and hardened, concrete does not need any maintenance, thus, it is a cost-effective solution for industries. The government of Vietnam is focusing on establishing new industrial parks in Ha Noi to attract more foreign direct investment in the city. For instance, the city has set a goal of establishing five new industrial parks between 2021 and 2025, including Soc Son Clean Industrial Park, which covers 302.8 hectares, Dong Anh Industrial Park, which covers 300 hectares, Bac Thuong Tin Industrial Park, which covers 112 hectares, expanded Phu Nghia Industrial Park, which covers 389 hectares, and Phung Hiep Industrial Park, which covers 174.88 hectares. Hence, new industrial development projects such as the establishment of 2-5 new industrial zones 2021-2025 in Ha Noi will boost the industrial construction activities in the city, and it is expected to drive the concrete demand, this will accelerate the Vietnam concrete market growth.
Vietnam Concrete Market Driver
Increase in Penetration of Ready-Mixed Concrete Products
Developments in the Residential and Commercial Construction
Vietnam Concrete Market Challenges
Fluctuation on Raw Material Prices to Hamper the Market
Vietnam Concrete Market Landscape
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 July 2020, Hùng Anh International opened its new facility for concrete dispatching in Ho Chin Minh City, Vietnam to expand its concrete production capacity in Ho Chin Minh and City and meet the growing demand from construction sector of the city.