StoxPlus is pleased to introduce Vietnam Concrete Market Preview 2017.
The preview provides latest information on Vietnam concrete industry by analysing market size & potential growth, segmentation analysis as well as competition landscape, focusing on key players in each segment.
Below are the most critical findings in the preview:
1) Vietnam construction sector – key drivers for industrial concrete: Construction value in Vietnam reached VND981bn in 2016, posting a growth of 15.5% compared to 2015. Vietnam construction sector continued the upward trend thanks to the strong growth of non-residential and infrastructure projects. Non-residential construction especially hotel and resorts in the Central outperformed with a growth rate of 23.7% to stay at VND318bn (US$14.5bn) in 2015. Infrastructure construction value reached VND157bn (equivalent to US$7.1bn) in the same year, expanding by 14.6% compared to the previous year.
2) Concrete in Vietnam is categorized into three segments including ready-mixed, made-on-site and precast. Construction growth posts direct impact on building materials, including concrete. Among three concrete categories, Ready-mixed benefits most from the increase of construction.
3) Amongst cement demand sources, residential construction is considered the main driver for cement consumption in Vietnam, followed by non-residential construction, export and infrastructure development. Particularly, residential construction lifted domestic cement consumption in 2015 and is expected to be in upward trend in the next five years. Meanwhile, infrastructure development is identified as a need for future growth of Vietnam. However, given high budget deficit of Vietnamese government and limited ODA from 2016, available fund for infrastructure is expected to decrease, leading to a fall of 1-2% in cement demand for infrastructure project.
4) Total concrete consumption volume reached 44.6 million m3 in 2015.
5) The market is fragmented with approximately 210 companies (Ready-mixed and Precast). The market is dominated by local players with strong brands, controlling key markets such as Red River Delta (mostly Hanoi) and Southeast region (Ho Chi Minh City). Different groups of players have different competitive advantages that impact their sale strategies.