Vietnam Concrete Market - Forecast(2024 - 2030)

Report Code: CMR 1454 Report Format: PDF + Excel

Vietnam Concrete Market Overview

Vietnam concrete market size is forecast to reach US$5.8 billion by 2027 after growing at a CAGR of 7.9% during 2022-2027. Concrete is used in construction as structural material consisting of a hard, chemically inert particulate substance, known as aggregate which is usually sand and gravel, that is bonded together by cement and water. Concrete is resistant to fire, wind, water, vibrations, and earthquakes, keeping people safer and reducing costs. Concrete structures have proven to be the most resilient. Ready mix concrete can be used for multiple applications including civil engineering projects, road developments, foundations, bridges, walls, floors & bases, driveways, footpaths. The primary advantages of using ready mix concrete include a high-quality product, an eco-friendly process, and saving time for your business. One of the major factors driving the growth of the Vietnam concrete market is the increasing use of ready mix concrete in the infrastructure and building & construction sector.

Impact of Covid-19

COVID-19 had slightly reduced production activities in Vietnam due to shortage of labor, and the decline of supply and demand chain, which had temporarily affected the market in 2020. However, initiatives from the Vietnam government in order to encourage private and foreign investment in the country’s construction projects are creating opportunities for growth of the concrete market in Vietnam since 2021.

Report Coverage

The report “Vietnam Concrete Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Vietnam concrete industry.

By Concrete Type: High Strength Concrete, High Performance Concrete, Ultra High Performance Concrete, Stamped Concrete, Self-Consolidating Concrete, Limecrete, and Others.
By Product: Ready Mixed Concrete, Rapid Drying Concrete, Wet Mix Concrete, Precast Concrete, and Others.
By End Use: Building and Construction (Residential and Commercial), Industrial, Infrastructure (Roads, Flyovers and Bridges, Pavements, and Others), and Others.
By City: Ho Chi Minh City, Ha Noi, Hai Phong, Can Tho, Da Nang, Dong Nai (Bien Hoa), and Rest of Vietnam. 

Key Takeaways

  • Ha Noi city dominated the Vietnam concrete market due to the rising usage of concrete products such as ready mixed concrete, rapid drying concrete, wet mix concrete, and others, in the growing building and construction activities.
  • An increase in development of high-rise structures can raise the demand for high-strength concrete, owing to its properties and benefits. This is further expected to raise the growth of the concrete market in Vietnam.
  • Rising investments and inclining growth of the infrastructure sector would also drive the market growth in the forecast period.
  • Additionally, companies have been constantly focusing on developing or expanding on the ready-mix concrete due to increasing demand from the construction site where mixing of concrete is not possible at the site. For instance, in 2021 the two plants of FiCO PanU, a joint venture between the Singapore-based Pan-United Corporation (Pan-United) and Vietnam's FiCO Corporation - will collectively supply about 700,000 cubic meters of ready-mix concrete to the Aqua City development over a 2 and 1/2-year, Pan-United said.

Figure: Vietnam Concrete Market Revenue Share, by End Use 2021 (%)

Vietnam Concrete Market

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Vietnam Concrete Market Segment Analysis – By Concrete Type

High strength concrete held the largest share in the Vietnam concrete market in 2021. High strength concrete is a type of concrete with a specified characteristic cube strength that lies between 60 to 100 N/mm2, or more. It has a compressive strength greater than 6000 psi or 42 MPa. It is capable of resisting loads that cannot be resisted by normal-strength concrete. Moreover, it has an increased modulus of elasticity, which also increases the overall stability and reduces deflections in comparison to stamped concrete, self-consolidating concrete, limecrete, and other types of concrete. These properties of high strength concrete make it ideal for use in applications that must resist high compressive loads which include the erection of high-rise structures, and components such as shear walls, columns (particularly on lower floors where the load is greatest), and foundations. In August 2020, the people’s committee of Ho Chi Minh City in Vietnam announced a new housing high-rise condominium project along with the completion of 2,200 houses by the end of 2022. This is expected to increase the demand for concrete for use in structural elements of the high-rise structure such as walls, columns, foundations, and more.

Vietnam Concrete Market Segment Analysis -By End Use

Building and Construction held the largest share with 55% in the Vietnam concrete market in 2021 and is anticipated to grow at a CAGR of 8.9% during the forecast period 2022-2027. Concrete is used in construction of residential buildings such as independent houses, row houses, and apartments along with construction of commercial structures that include airports, office buildings, hospitals, schools, and more. An increase in the building and construction activities from the residential and commercial sectors in Vietnam is increasing the demand for concrete, which is driving the growth of the market. According to the General Statistics Office (GSO) of Vietnam, building & construction industry recorded a growth of 5.7% during the third quarter of 2020, and up to 5.5% during the fourth quarter of 2020. Furthermore, in order to encourage the private investors, the government is also offering incentives to developers for construction of affordable houses and has set aside US$1.3 billion for the construction of affordable houses in the country during the period of 2018 to 2022. Such initiatives and investments from the government for construction and development projects across the country is expected to increase the demand for concrete, thus, leading to the growth of the Vietnam concrete market.

Vietnam Concrete Market Segment Analysis – By City

Ha Noi city dominated the Vietnam concrete market in terms of revenue and is projected to rise with a CAGR of 9.2% during the forecast period (2022-2027). Building and construction industry is one of the key industries in Ha Noi, it is Vietnam's capital and the largest economy in the Northern Key Economic Region (KER) in Vietnam. In industrial new establishment concrete is utilized in walls, foundation base, side columns, and more because once poured and hardened, concrete does not need any maintenance, thus, it is a cost-effective solution for industries. The government of Vietnam is focusing on establishing new industrial parks in Ha Noi to attract more foreign direct investment in the city. For instance, the city has set a goal of establishing five new industrial parks between 2021 and 2025, including Soc Son Clean Industrial Park, which covers 302.8 hectares, Dong Anh Industrial Park, which covers 300 hectares, Bac Thuong Tin Industrial Park, which covers 112 hectares, expanded Phu Nghia Industrial Park, which covers 389 hectares, and Phung Hiep Industrial Park, which covers 174.88 hectares. Hence, new industrial development projects such as the establishment of 2-5 new industrial zones 2021-2025 in Ha Noi will boost the industrial construction activities in the city, and it is expected to drive the concrete demand, this will accelerate the Vietnam concrete market growth.

Vietnam Concrete Market Driver

Increase in Penetration of Ready-Mixed Concrete Products

Ready mix concrete can be used for multiple applications including civil engineering projects, road developments, foundations, bridges, walls, floors & bases, driveways, footpaths. The primary advantages of using ready mix concrete include a high-quality product, an eco-friendly process, and saving time for your business. The exponential growth of the constructions and the increasing competitiveness in the market are pushing Vietnamese companies to adopt ready mix concrete with the strong desire to improve the quality. For instance, Mapei Admixtures Company, one of the major manufacturers of ready mix concrete in Vietnam is contributing to the building of concrete giants i.e., the Golden Bridge, Ba Na Hills, Da Nang. The bridge span is about 12.8 m wide and 150 m long and comprises 8 arches, the longest of which measures 21.2 m. The bridge construction process was fully implemented amidst the forest and mountainous areas where every access was very limited. Ready-mixed concrete had to be transported for long distances at high temperatures yet maintaining the required mechanical strengths. The solution was provided by DYNAMON SR2 VN, a superplasticizer for ready-mixed concrete which is manufactured and distributed by Mapei Vietnam. Construction growth has a direct impact on building materials, including concrete. Among three concrete categories, ready-mixed benefits most from the increase of construction.

Developments in the Residential and Commercial Construction

The government initiatives to bridge the gap between demand and supply for affordable housing in the country is expected to support the growth of the Vietnam concrete market over the forecast period. Accordingly, it launched various social housing programs such as the Housing for Poor Rural Families Program, low-rent housing for industrial zone employees, and low-income urban social housing-local government. According to the General Statistics Office (GSO) of Vietnam, construction value recorded a growth of 5.7% (year-on-year) in Q3 2020. Thus, the cumulative growth rate for the three quarters was at 5%. According to the Department of Construction of Ho Chi Minh City, in the period 2021-2025, has planned to develop at least 50 million square meters of new housing, of which, only commercial housing projects, adding at least 15.5 million square meters of floor space, social housing about 2.5 million square meters of floor space. On the other hand, in Hanoi, 56 housing projects are being implemented in 2022, including 52 commercial housing projects (84,319 apartments, 19,506 individual houses), 4 social housing projects (5,464 apartments). Thus, significant market traction from the increasing adoption of concrete across the residential and commercial construction is further projected to fuel the market growth during the forecast period.

Vietnam Concrete Market Challenges

Fluctuation on Raw Material Prices to Hamper the Market

The rapid strength of concrete is frequently expensive and may carry relevant ecological footprints, the reason why there are a growing necessity and interest in finding cheaper and more sustainable alternatives. The raw materials for concrete are cement, the average cost of cement recorded a 25 percent hike in 2018, followed by a 3-9 percent additional hike across zones, effective from 2019. Selling prices of cement in Vietnam have increased by US$1.29-1.72/t as production costs have increased in 2021, according to Vietnam National Cement Association. Local cement producers have considered raising the price since the end of 2020 as raw material, labor, and freight costs have continuously increased. The increase in raw material prices has an immediate impact on the rapid strength of concrete. In addition, any low-cost substitute like ferrock will pose a threat to the rapid-strength concrete market. Thus, all these factors will hamper market growth during the forecast period. Despite efforts to reduce costs and increase efficiency in production to offset the price hike of raw materials and input costs, cement producers have to adjust up sale prices by US$2.20-4.41 per tonne depending on the product. However, Hoàng Long Cement Joint Stock Company increased the price of all kinds of cement including PCB30 and PCB 40 by US$3.53 per tonne from 2020. The consistently growing cement prices have long been a reason of worry for the real estate sector since it increases the financial burden on the realtors and homebuyers, too.

Vietnam Concrete Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Vietnam concrete market. Major players in the Vietnam concrete market are

  1. Siam City Cement Vietnam
  2. Sino Pacific Construction Consultancy Co., Ltd
  3. Le Phan Construction Company (Ltd)
  4. Hong Ha Beton JSC
  5. Concrete Corporation RACH
  6. Vicem Hoang Mai Cement Joint Stock Company
  7. Fico Pan-United Concrete Joint Stock Company (Fico Panu)
  8. Hùng Anh International
  9. Saigon Manufacturing and Trading Joint Stock Company (SMC)
  10. Eblock Jsc Vietnam and Others

Recent Developments

  • In July 2020, Hùng Anh International opened its new facility for concrete dispatching in Ho Chin Minh City, Vietnam to expand its concrete production capacity in Ho Chin Minh and City and meet the growing demand from construction sector of the city.

Relevant Reports

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1. Vietnam Concrete Market- Market Overview
    1.1 Definitions and Scope
2. Vietnam Concrete Market- Executive Summary
    2.1 Key Trends by Concrete Type
    2.2 Key Trends by Product
    2.3 Key Trends by End Use
    2.4 Key Trends by City
3. Vietnam Concrete Market– Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 3 Financials Analysis
    3.4 Pricing Analysis (ASPs will be provided)
4. Vietnam Concrete Market - Startup Companies Scenario Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Vietnam Concrete Market– Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Vietnam Concrete Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
    6.4 Bargaining Power of Suppliers
        6.4.1 Bargaining Powers of Buyers
        6.4.2 Threat of New Entrants
        6.4.3 Competitive Rivalry
        6.4.4 Threat of Substitutes
7. Vietnam Concrete Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Vietnam Concrete Market– By Concrete Type (Market Size -US$ Million/Billion)
    8.1 High Strength Concrete
    8.2 High Performance Concrete
    8.3 Ultra High Performance Concrete
    8.4 Stamped Concrete
    8.5 Self-Consolidating Concrete
    8.6 Limecrete
    8.7 Others
9. Vietnam Concrete Market – By Product (Market Size -US$ Million/Billion)
    9.1 Ready Mixed Concrete
    9.2 Rapid Drying Concrete
    9.3 Wet Mix Concrete
    9.4 Precast Concrete
    9.5 Others
10. Vietnam Concrete Market – By End Use (Market Size -US$ Million/Billion)
    10.1 Building and Construction
        10.1.1 Residential
   Independent Houses
   Row Houses
        10.1.2 Commercial
   Office Buildings
    10.2 Industrial
    10.3 Infrastructure
        10.3.1 Roads
        10.3.2 Flyovers and Bridges
        10.3.3 Pavements
        10.3.4 Others
    10.4 Others
11. Vietnam Concrete Market - By City (Market Size -$Million/Billion)
    11.1 Ho Chi Minh City
    11.2 Ha Noi
    11.3 Hai Phong
    11.4 Can Tho
    11.5 Da Nang
    11.6 Dong Nai (Bien Hoa)
    11.7 Rest of Vietnam
12. Vietnam Concrete Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Vietnam Concrete Market – Market Share Analysis Premium
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share by Key Cities - Major companies
14. Vietnam Concrete Market – Key Company List by Cities Premium
15. Vietnam Concrete Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    15.1 Siam City Cement Vietnam
    15.2 Sino Pacific Construction Consultancy Co., Ltd
    15.3 Le Phan Construction Company (Ltd)
    15.4 Hong Ha Beton JSC
    15.5 Concrete Corporation RACH
    15.6 Vicem Hoang Mai Cement Joint Stock Company
    15.7 Fico Pan-United Concrete Joint Stock Company (Fico Panu)
    15.8 Hùng Anh International
    15.9 Saigon Manufacturing and Trading Joint Stock Company (SMC)
    15.10 Eblock Jsc Vietnam and Others
"*Financials would be provided on a best efforts basis for private companies"