Vietnam Prefabricated Buildings - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Vietnam Prefabricated Buildings - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Vietnam Prefabricated Buildings Market size is estimated at USD 4.89 billion in 2024, and is expected to reach USD 5.95 billion by 2029, growing at a CAGR of 4% during the forecast period (2024-2029).

The increased demand for prefabricated housing in the region, including manufactured housing, modular housing, precut housing, and panelized housing, is driven by a constant increase in the demand for housing units across the country.

Vietnam's urban population was 37.3% in 2020. Over the last 50 years, Vietnam's urban population increased significantly from 18.4% to 37.3%, rising at an annual rate of 2.34% and declining to 1.94% in 2020. Vietnam's six main cities are estimated to grow significantly by 2030. Over the next decade, the population of Ho Chi Minh City is expected to reach 11.1 million, growing by over 4 million. The population of Hanoi, the country's capital and second-largest city, is expected to reach 6.4 million, rising by 2.7 million.

Housing is a critical component of Vietnam's urbanization. In 2019, 27% of the urban population lived in substandard housing. By 2049, there will be 13.9 million more urban families, escalating the situation.

Vietnam Prefabricated Buildings Market Trends

Government Policies Boosting the Market

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) are expected to propel Vietnam's exports of prefabricated buildings.

The prefabricated buildings feature highly on Vietnam's export list of lighting and furniture. Such buildings are gaining popularity in the commercial sector and residential living spaces. The government wants the building materials sector to achieve a higher level of automation by 2030.

The Ministry of Construction proposed a VND 30 trillion (USD 1.3 billion) credit package to build low-cost homes for workers. The package will help ensure social welfare for vulnerable people, enhance economic recovery and development, remove the difficulties plaguing enterprises, and support the development of housing and the real estate market.

Increasing Urbanization in Vietnam

The rapid urbanization, growing population, and booming economy of Vietnam are putting strain on the country's natural resources. Vietnam's immense coastline makes it susceptible to climate change and rising sea levels.

Vietnam's government has learned about the effects and knows how important it is to make its cities smarter and more environmentally friendly.

From planning to construction to the user stage, buildings utilize vast resources. In Vietnam, buildings consume half of their raw materials, 30-40% of their energy production, a quarter of their wood harvest, and 17% of their freshwater. The government's decision to build green cities is crucial to easing up human activities that cause harm to the environment.

The 'going green' trend benefits the environment and is a great investment for businesses. According to a Green Infrastructure Investment Opportunities report, green buildings exhibit huge investment potential, adding approximately USD 100 trillion globally between 2019 and 2030.

Vietnam Prefabricated Buildings Industry Overview

The report covers the major players operating in the Vietnamese prefabricated building market. The market is highly competitive and fragmented, with a few players occupying the major share. It is expected to grow during the forecast period. With the formulated objectives of central government policy and the need for affordable housing, the prefabricated building market in Vietnam is expected to remain strong. The major market players include TLC Modular, Zamil Steel Buildings Vietnam Co. Ltd., and BMB Steel.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support