Equity Analysis /

Construction Sector: Facing difficulties

    Trinh Nguyen
    Rong Viet
    15 September 2019
    Published by

    In this 14-page report we focus on Vietnam's construction sector

    2H2019 can be more promising for the civil construction segment as feasible measures are being taken to tackle the delay problems in large cities:

    • Drastic measures are being taken to resume progress at delayed/slow projects in the urban areas, led by HCMC.
    • A growing population with a booming middle-income group will require an increasing supply of housing in the future. Therefore, we believe that the long-term potential remains ample for the construction industry.

    Disbursement from the public and foreign sectors are predicted to keep stable, supporting overall construction demand:

    • The Vietnamese government targets to disburse VND 420 trillion in 2019, 32% of which was done in the first half. Therefore, there is a motivation to boost progress in 2019.
    • Registered FDI reached USD 35.8 billion in 2018, which is also an important factor in the future construction demand.
    • The global trend of moving production plants to South East Asia is going to benefit Vietnamese’s reputable construction contractors.