Vietnam Construction Market

Vietnam Construction Industry Overview:

Vietnam construction market size reached USD 36,232.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 70,578.2 Million by 2033, exhibiting a growth rate (CAGR) of 7.69% during 2025-2033. The increasing demand for cloud services and big data analytics, rising need for more reliable and scalable data processing and storage facilities, and stringent regulatory compliance represent some of the key factors driving the market.

Construction is a multi-faceted process that involves the conceptualization, planning, designing, and implementation of various types of structures and infrastructures. It spans a broad range of projects from simple residential housing to complex engineering marvels like skyscrapers, bridges, and dams. It generally has a conceptual vision, which is then translated into detailed blueprints and plans by architects and engineers. It serves as the roadmap for builders, craftsmen, and laborers who execute the actual building process, converting raw materials like concrete, steel, and wood into finished structures. It offers durability and well-executed infrastructure projects can last for generations due to stringent safety measures, regulations, and industry standards that guide the planning and building phases. Moreover, it is a transformative process that shapes our physical world, enabling us to live, work, and interact in spaces that are safe, efficient, and conducive to modern life.

Vietnam Construction Market Trends:

Urban Growth and Housing Expansion

Vietnam’s rapid urbanization is fueling a surge in demand for housing, retail, and office space, especially in major cities like Hanoi and Ho Chi Minh City. Mid-rise and high-rise developments are becoming the standard in response to limited land availability. Developers are adjusting to market pressure with high-density residential models. This pattern is reshaping the entire sector, with building construction projects now focusing more on vertical expansion and integrated community planning to accommodate shifting demographics. Investment in infrastructure is rising as Vietnam prioritizes better connectivity and regional development. Public funds are flowing into roads, bridges, and industrial zones. These shifts in policy and budgeting are reshaping how firms approach building and construction standards in both urban and peri-urban zones.

State-Led Infrastructure Development

Government-led projects across Vietnam are transforming mobility and logistics. Investments in expressways, ports, and rail upgrades are reshaping regional connectivity. Cities like Da Nang and Can Tho are seeing rising activity in logistics hubs and export zones. These infrastructure projects often come with tax incentives and long-term leasing plans, attracting both domestic and foreign firms. This boom has also led to increased demand for specialized equipment and smarter workflows, strengthening the market for construction machinery providers operating in Vietnam. Foreign capital continues to flow into infrastructure and real estate across the country. This influx brings not only money but also modern design standards, driving momentum in green-certified and energy-efficient projects. It’s changing developer preferences and raising interest in the Vietnam green building market.

Foreign Capital Reshaping Project Standards

Vietnam is seeing major real estate partnerships with investors from South Korea, Japan, and Singapore. These deals are reshaping standards across large urban projects. Many of these foreign-backed developments now include public spaces, underground parking, and digital controls for lighting and energy. Their presence also increases pressure on domestic players to upgrade planning and compliance. Several of these projects are integrated into digital infrastructure programs, contributing to the evolution of Vietnam smart city construction in both first-tier and emerging cities. Modern tools like BIM and 3D simulation are being widely adopted by contractors. These upgrades enhance accuracy and reduce delays, which is crucial in today’s high-volume urban projects. This shift is aligning with national goals to support Vietnam sustainable construction practices.

Tech Integration and Digital Workflows

New construction methods are improving speed and accuracy in everything from residential towers to large industrial complexes. The application of tools like BIM, digital twins, and modular design is helping contractors work more efficiently. Small and medium-sized firms are also starting to adopt these methods, thanks to falling costs and better training. These technologies are reshaping how developers approach residential layouts, materials, and scheduling, and are having a direct influence on Vietnam residential construction trends. The total value of ongoing and planned projects shows a healthy pipeline through the next few years. This momentum reflects policy consistency and investor confidence. Based on recent data, the Vietnam construction market 2024 is set to exceed earlier growth forecasts, especially in housing and transport.

Real Estate Market Outlook

Vietnam’s real estate sector is shifting toward tech-driven and environmentally conscious development, with strong backing from both domestic and foreign investors. A growing middle class is driving demand for condominiums, gated communities, and mixed-use spaces. Developers are integrating AI-based scheduling, carbon tracking, and modular methods in residential and commercial projects to cut costs and speed up delivery. Tier-1 cities like Hanoi and Ho Chi Minh City remain hotspots, while tourism-heavy and industrial regions are seeing targeted growth. According to the latest Vietnam construction industry report, the real estate pipeline shows rising interest in smart home features, wellness-oriented design, and prefabricated components aimed at enhancing both efficiency and lifestyle appeal.

Vietnam Construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on sector.

Sector Insights:

• Residential Construction
• Commercial Construction
• Industrial Construction
• Infrastructure (Transportation) Construction
• Energy and Utilities Construction

The report has provided a detailed breakup and analysis of the market based on the sector. This includes residential construction, commercial construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction.

Regional Insights:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the key players include:

• An Phong Construction Joint Stock Company
• Central Construction Joint Stock Company
• Construction Joint Stock Company
• Coteccons Construction JSC
• CTCI Vietnam Co. Ltd.
• GS E&C Vietnam
• Newtecons

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Vietnam Construction Market News:

• In June 2025, Australis Aquaculture started building a new high-tech processing plant in Vietnam’s Van Phong Economic Zone, Khanh Hoa Province. The facility would boost efficiency and product quality for its ocean-farmed barramundi. It features nitrogen freezing for better texture, smart monitoring for precise processing, and lines for coating, breading, and packing. This expansion supports sustainability, reduces waste, and improves traceability of Australis’ seafood products.
• In March 2025, Arup, the Vietnam Green Building Council, and Dr Cary Chan signed an MOU in Ho Chi Minh City. The partnership would advance Vietnam’s 2050 carbon neutrality target by pushing sustainable construction. They’ll jointly develop the Vietnam Zero Carbon Ready Framework, which would cut operational carbon in existing buildings through energy efficiency, low-carbon operations, and modern technology.
• August 2024, IHG Hotels & Resorts signed a two-hotel deal in Quang Binh with Hai Thanh Hung Investment and VRIC, adding the 68-villa voco Quang Binh Resort and 232-room Crowne Plaza Quang Binh City Centre. The projects, opening in late 2025, would bring fresh investment and development activity to the region, driving new builds and supporting local construction through premium hospitality expansion.

Vietnam Construction Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam construction market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam construction market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam construction industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.