Vietnam
prefabricated buildings market is predicted to grow during the forecast period owing
to various driving factors such as rising needs for affordable housing &
upcoming projects, increasing initiatives in the infrastructure &
construction sector, growing population & urbanization, and government
policies to enhance the market for prefabricated buildings across the nation. Additionally,
rising demand for prefabricated housing, including manufacturing housing,
modular housing, precut housing, and panelized housing is driving the market
for Vietnam prefabricated buildings.
Prefab
houses sometimes referred to as prefabricated homes, are ones that have been
built using prefabricated construction materials. These construction materials
are prefabricated in a facility off-site, transported there, and then put
together. Prefabricated houses combine conventional home ownership with modern
technologies. Utilizing various techniques, such as 3-D printing, these
dwellings are constructed in advance and erected off-site. Modular dwellings
are defined as having at least 70% of their components prefabricated. This
facilitates disassembling, moving, and assembling these dwellings. Prefab homes
are less expensive, more environment-friendly, and more aesthetically pleasing
than traditional residences. Prefab houses are built with concrete-based and
metal-fabricated construction elements. The lack of raw resources has presented
several problems for manufacturing enterprises. Additionally, the suspension of
construction contracts has slowed the market expansion for prefabricated
buildings. The decline in building and construction activities has a
substantial influence on market growth since it has reduced the demand for
prefabricated building systems.
In
2020, Vietnam's urban population was around 37%. Over the past 50 years,
Vietnam's urban population has raised significantly from 18.4% to 37%, growing
at an annual rate of 2.34% and decreasing to 1.94% in 2020. Also, population Vietnam's
six major cities are estimated to grow significantly by the end of 2030. The
population of Ho Chi Minh City is expected to reach 11.1 million in the coming
years, increasing 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. Additionally, housing is one of the key factors in Vietnam's
urbanization. In 2019, 27% of the urban population lived in substandard
housing. There are expected to be 13.9 million more urban families, escalating
the situation by the end of 2049.
There
are various government policies which are likely to propel the market for
prefabricated buildings in the coming years. For instance, in 2021, the
European Union and Vietnam free trade agreement (EVFTA) enhanced Vietnam’s
exports of prefabricated buildings. The
prefabricated buildings feature highly on Vietnam’s export list of lighting and
furniture. Such buildings are achieving attractiveness in the commercial sector
as well as residential sectors. Also, Vietnam’s government intends the building
materials sector to achieve a higher level of automation by the end of 2030.
Rising
Investment in Infrastructure Sector
The
rising infrastructure investments are anticipated to boost the growth of the Vietnam
prefabricated buildings market in the coming years, owing to the growing
industrialization and urbanization. Vietnam’s population is equivalent to 1.25%
of the total world population. Vietnam ranks 15 on the list of countries by
population. There are various infrastructure investments across the country. For
instance,
· The Ministry of Construction has announced a USD
1.3 billion credit package to build low-cost houses for workers. The package
helps to 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 sector across the country.
· Industrial and logistics have emerged as the
hottest sector over the past five years, with an increasing number of
institutional investors entering the market. GLP announced the establishment of
GLP Vietnam Development Partners with a total investment value of USD 1.1
billion in six logistics center projects with a total area of 900,000 sqm.
Additionally,
growing commercial real estate investments are anticipated to impact the
prefabricated construction market's income positively. For instance, there has
been rising interest from European and United States investors in Vietnam’s
real estate sector. For example, the Lego project, which involves an investment
of over USD 1.3 billion has propelled Denmark to the seventh position in terms
of total registered investment by a foreign country.
Rising
opportunities in Vietnam’s green architecture
According
to International Finance Corporation (IFC), the country’s green buildings
sector is almost a USD 80 billion investment opportunity. Potential investment
in renewable energy totals USD 59 billion, with over half of this USD 31
billion in solar photovoltaic (PV) technology and another USD 19 billion for
small hydropower projects. Vietnam’s climate-smart business investment
potential is also estimated at USD 753 billion, with the majority coming from
the country’s transportation infrastructure needs by 2030 as per IFC. The Green
Infrastructure Investment Opportunities (GIIO) report presents
major trends and developments for green infrastructure and energy. It showed
significant investment potential adding close to USD 100 trillion worldwide for
the 2019-2030 period. It asserted that Vietnam will need to adopt greener
infrastructure to compensate for the environmental implications of its economic
development such as the increase in energy consumption, urban development, and
greenhouse gas (GHG) emissions. Therefore, the above-mentioned factors are
likely to propel the growth of the prefabricated buildings market in Vietnam during
the forecast period.
Challenges:
Transportation Issues Associated with Prefabricated Building Systems
Prefabricated
construction is now regarded as a rapid, environment-friendly, and economical
method of construction. While prefabricated towers and skyscrapers have
recently become popular for bigger projects, this technique has historically
been more frequently employed for modest residential buildings.. Prefabricated
building solutions that are designed for performance may appear ideal in
theory, but they lack customization and attention to detail. By producing items
off-site rather than on-site, a separation develops between the architect and
the manufacturer. Furthermore, any inexpensive substitute can put the need for
prefabricated building technology in jeopardy. Therefore, the prefabricated
building systems' transportation-related problems may limit the growth of the
market during the forecast period.
Recent
Developments
- In April 2023, United States
Agency for International Development partnered with Vietnam to increase
private investment in infrastructure projects.
- In September 2022, Lotte Group revealed
plans to create an eco-friendly smart city' complex in Vietnam, as well as
a separate smart logistics center for populations. On September 2,
the organization hosted the groundbreaking ceremony for Lotte Eco Smart
City Thu Thiem in Ho Chi Minh City's Thu Thiem new urban region. It planned
to invest more than USD 900 million in the project. The project has a
total floor area of 680,000 sqm, five basements, and multiple towers, the
tallest of which is 60 stories.
- According to the United Nations COMTRADE
database on international trade, the United States of America’s Exports of
prefabricated buildings to Vietnam were approximately USD 24.54 Thousand in
2021.
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Market
Segmentation
The Vietnam prefabricated buildings market is
segmented into material type, structure, application, and region. Based on
material type, the market is segmented into concrete, glass, metal, timber, and
others. Based on structure, the market is segmented into skeleton system, panel
system, cellular system, and combined system. Based on application, the market
is segmented into residential, commercial, and industrial. The market analysis
also studies the regional segmentation to devise regional market segmentation,
divided among Northern Vietnam,
Central Vietnam, and Southern Vietnam.
Company
Profiles
Best Metal Building
and Accessory Joint Stock Company, Tran Duc Joint Stock Company, QH Plus Joint
Stock Company, Seico Steel Building Construction Joint Stock Company, Lien Son
Thang Long Joint Stock Company, TLC Modular Pte Ltd, Dai Dung Corporation Group,
Zamil Steel Buildings Vietnam Co. Ltd, and TDH Green Building Solution Co. Ltd are
some of the major players in the Vietnam prefabricated buildings market.
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Attribute
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Details
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|
Base Year
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2022
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Historical Years
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Billion and CAGR for 2018-2022 and 2024-2028
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Report Coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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Segments Covered
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Materials Type
Structure
Application
Region
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Regional Scope
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Northern
Vietnam, Central Vietnam, Southern Vietnam
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|
Key Companies Profiled
|
Best Metal Building and Accessory Joint Stock Company, Tran
Duc Joint Stock Company, QH Plus Joint Stock Company, Seico Steel Building
Construction Joint Stock Company, Lien Son Thang Long Joint Stock Company,
TLC Modular Pte Ltd, Dai Dung Corporation Group, Zamil Steel Buildings
Vietnam Co. Ltd, TDH Green Building Solution Co. Ltd
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Customization Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and Purchase Options
|
Avail of customized purchase options to meet your exact
research needs. Explore purchase options
|
|
Delivery Format
|
PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf format
on special request)
|
Report Scope:
In this report, the Vietnam
prefabricated buildings market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Vietnam Prefabricated Buildings Market, By
Materials Type:
o
Concrete
o
Glass
o
Metal
o
Timber
o
Other
·
Vietnam Prefabricated Buildings Market, By
Structure:
o Skeleton System
o Panel System
o Cellular System
o Combined System
·
Vietnam Prefabricated Buildings Market, By
Application:
o Residential
o Commercial
o Industrial
·
Vietnam Prefabricated Buildings Market, By Region:
o Northern Vietnam
o Central Vietnam
o Southern Vietnam
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Vietnam Prefabricated Buildings market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Vietnam Prefabricated Buildings Market is an upcoming report to be released soon. If you
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