Vietnam’s construction industry is set to continue its recovery in 2022 as several large-scale infrastructure projects move through different stages of development. According to Fitch Solutions, Vietnam will continue to be one of the fastest-growing construction markets in the region as the strengthening economy supports fiscal expenditure and attracts foreign and private investment in real estate and infrastructure. Fitch Solutions forecasts that Vietnam’s construction sector could grow by 7.9% in 2022. Meanwhile, Turner & Townsend Vietnam anticipates that many key infrastructure projects such as the metro, airport, bridges and roads are expected to commence contract works in 2022.
Amendments to the nation’s construction and investment laws will likely bring further investment into the sector as well, in particular the government’s most recent five-year plan and several transport plans that were enacted in recent months.
Various Southeast Asian companies are actively exploring opportunities in Vietnam. For example, Singapore-headquartered concrete and cement provider Pan-United Corporation recently signed a cooperation agreement with Vietnam property company Novaland Group. Its subsidiary, FiCO Pan-United Concrete (FiCO PanU), will provide sustainable concrete solutions to Novaland until 2024. Under the agreement, FiCO PanU will build two on-site batching plants in Aqua City, a smart-eco integrated development in Vietnam’s Dong Nai province.
Pan-United has also supplied projects in Ho Chi Minh City, such as the Urban Railway Construction Project, Cat Lai Port in District 2 as well as Keppel Land’s 14.6-hectare integrated waterfront development in the Thu Thiem New Urban Area, according to its 2020 annual report.
(Sources: Business Times; Fitch Solutions; Turner & Townsend)