Vietnam Structural Steel Fabrication Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Vietnam Structural Steel Fabrication Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Vietnam structural steel fabrication market is estimated to grow at a CAGR of approximately 9% during the forecast period.

Key Highlights

• Rapid urbanization, growth in infrastructure and increasing steel within the country has resulted in an astonishing rate of more than 20% growth in production of Vietnam’s steel industry. From 2013 to 2016, the steel production grew at a phenomenal rate the steel consumption also grew more than 25%.
• As per industry experts, per capita steel consumption in Vietnam is expected increase in the next few years driven by the rising infrastructure and property investments.
• Also, the demand for steel in the Vietnam construction sector is expected to rise more than 10% over the next few years.
• Due to the development of the socio-economy along with the trend of globalization, the demand for construction of civil works tends to increase in recent years, so the need to use these materials are a lot of attention and interest.
• Steel structure is one of the most popular types of structures today, fully utilized and applied in a variety of designs and construction of various projects from high-rise buildings to industrial buildings.

Key Market TrendsShifting Preference towards the usage of Steel Structures in Vietnam Construction Industry

• The demand for construction of buildings such as housing, all high-rise buildings, commercial centers or civil works tends to increase strongly. .
• The benefits of steel structures in the construction industry has increased the demand for structural steel and is one of the main material chosen by many investors in Vietnam for its advantages.
• Vietnam’s construction industry made up approximately 33% of the country’s total GDP, with an 8% growth in 2017. The industry is projected to grow at an annual rate of 7 % for the next 10 years. As a result, Vietnam’s construction industry is driving the nation’s steel demand.
• From 2011 to 2016, the demand for steel in Vietnam grew by an average annual rate of 18%, which was the highest among the Southeast Asian countries followed by Philippines at 13.5% and Thailand at 6%.

Increasing Investments in Vietnam Manufacturing and Construction Sector

• As one of the world’s fastest developing countries, exports are expanding, foreign direct investment (FDI) is pouring in and new infrastructure is built every day.
• In 2017, Vietnam saw an increase of 44%in the FDI from 2016, and exports rose 23%. The majority of investment came from countries such as Korea, Singapore, Japan and China, where the cost of labor is much higher than in Vietnam.
• Metro projects in Ho Chi Minh City and Hanoi that are funded by foreign companies. Ho Chi Minh City’s Ben Thanh-Suoi Tien line will run through the city at a length of 19.7km, and is planned for completion in 2020. Most of the funding comes from Japan International Cooperation Agency (Jica), Japan’s Sumitomo Corporation and Shimizu-Maeda.
• Vietnam’s construction spending has grown at a CAGR of 8.5% and construction steel accounts for more than 93% of steel demand in Vietnam. Additionally, structural steel demand is expected to be 80% of the country’s entire steel demand, reaching 24 million tons by 2020.
• Also, Vietnam’s domestic steel production capacity only meets 40% of its demand, and relies heavily on imports from other countries.

Competitive Landscape

The report covers the major players operating in the Vietnam structural steel fabrication market. In terms of market share, very few companies operate in the structural steel fabrication market of Vietnam and is primarily dominated by small and medium sized players with presence in major markets of Asia.

Additional Benefits:

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

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