2023 Vietnam Construction Industry Databook Report: Strong Demand for Data Centers Will Keep Supporting Growth

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Feb 20, 2023, 21:00 ET

DUBLIN, Feb. 20, 2023 /PRNewswire/ -- The "Vietnam Construction Industry Databook Series - Market Size & Forecast by Value and Volume across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.

According to the publisher, construction industry in Vietnam is expected to grow by 15.4% to reach VND 5,54,660 billion in 2023.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Vietnam remains intact. The construction industry in Vietnam is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 12.8% during 2023-2027. The construction output in the country is expected to reach VND 8,98,147.7 billion by 2027.

Despite the economic uncertainties, the Vietnamese construction industry has continued to record steady growth in 2022, and the trend is projected to further continue over the next 12 months. The rising urban population, surging demand for data centers, and an increasing number of global firms moving their industrial base from China to Vietnam have supported the growth of the construction industry in Vietnam.

In 2023, the publisher expects more domestic and global players to keep investing in the development of new data center facilities, both hyperscale and co-location data centers. This along with the growing government spending on infrastructure projects, including those in the transport sector, will keep assisting the growth of the overall construction market over the next three to four years in Vietnam.

Industrial infrastructure development supporting the growth of the Vietnamese construction industry

Over the last two years, Vietnam has emerged as a leading destination for global firms to set up their industrial and manufacturing base, as many leading corporations went looking for alternatives to China.

Foreign direct investment is projected to further grow in the country over the next five years, as more and more players set up manufacturing and industrial units in Vietnam from the short to medium-term perspective.

Strong demand for data centers will keep supporting the growth of the commercial construction sector

Amid the growing digitalization in Vietnam and the broader Southeast Asian region, both foreign and domestic firms are launching a series of data center projects in Vietnam. VNG Company, for instance, opened a new and international standard data center facility in Ho Chi Minh City in December 2022. Viettel also announced the opening of a new data center facility, one of the largest in the country, in October 2022.

The firm also announced that it is planning to further increase its investment to develop more data center facilities in Vietnam. By 2025, the firm plans to invest approximately US$424.4 million in the development of new facilities. Along with domestic firms, foreign players such as Greenfield Vietnam Corporation and NTT Group also announced new data center projects, the construction of which is expected to get completed by 2024.

The growing investment, from both domestic and global players is, therefore, projected to keep supporting the growth of the Vietnamese commercial construction market over the next three to four years.

The rise in population is projected to drive the demand for new housing units in Vietnam

The growth in the Vietnamese population is driving the demand for new housing units, thereby supporting the growth of the residential construction market in the Southeast Asian market.

Notably, the population is projected to further increase over the next few years in Vietnam.

According to the Ministry of Construction, the urban population proportion is at more than 40% currently and is projected to reach 45% by 2030. As a result of this growth in proportion, Vietnam will have to add another 70 million square meters of housing every year.

Over the next three to four years, Vietnam is expected to experience a high demand growth for housing units in big cities and industrial zones. This growth in demand will keep assisting the growth of the residential construction segment, as well as the growth of the overall construction market, from the short to medium-term perspective.

Reasons to Buy

In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Vietnam.
Top Ten Cities Construction Value Data
Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.
City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

For more information about this report visit https://www.researchandmarkets.com/r/gf70jh

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