Vietnam Prefabricated Buildings Market, By Material Type (Concrete, Glass, Metal, Timber, and Other), By Structure (Skeleton System, Panel System, Cellular System, and Combined System), By Application (Residential, Commercial, and Industrial), By Region,

Vietnam Prefabricated Buildings Market, By Material Type (Concrete, Glass, Metal, Timber, and Other), By Structure (Skeleton System, Panel System, Cellular System, and Combined System), By Application (Residential, Commercial, and Industrial), By Region, Competition, Forecast, and Opportunities, 2028F

Vietnam prefabricated buildings market is predicted to grow during the forecast period owing to various driving factors such as rising needs for affordable housing & upcoming projects, increasing initiatives in the infrastructure & construction sector, growing population & urbanization, and government policies to enhance the market for prefabricated buildings across the nation. Additionally, rising demand for prefabricated housing, including manufacturing housing, modular housing, precut housing, and panelized housing is driving the market for Vietnam prefabricated buildings.

Prefab houses sometimes referred to as prefabricated homes, are ones that have been built using prefabricated construction materials. These construction materials are prefabricated in a facility off-site, transported there, and then put together. Prefabricated houses combine conventional home ownership with modern technologies. Utilizing various techniques, such as 3-D printing, these dwellings are constructed in advance and erected off-site. Modular dwellings are defined as having at least 70% of their components prefabricated. This facilitates disassembling, moving, and assembling these dwellings. Prefab homes are less expensive, more environment-friendly, and more aesthetically pleasing than traditional residences. Prefab houses are built with concrete-based and metal-fabricated construction elements. The lack of raw resources has presented several problems for manufacturing enterprises. Additionally, the suspension of construction contracts has slowed the market expansion for prefabricated buildings. The decline in building and construction activities has a substantial influence on market growth since it has reduced the demand for prefabricated building systems.

In 2020, Vietnam's urban population was around 37%. Over the past 50 years, Vietnam's urban population has raised significantly from 18.4% to 37%, growing at an annual rate of 2.34% and decreasing to 1.94% in 2020. Also, population Vietnam's six major cities are estimated to grow significantly by the end of 2030. The population of Ho Chi Minh City is expected to reach 11.1 million in the coming years, increasing 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. Additionally, housing is one of the key factors in Vietnam's urbanization. In 2019, 27% of the urban population lived in substandard housing. There are expected to be 13.9 million more urban families, escalating the situation by the end of 2049.

There are various government policies which are likely to propel the market for prefabricated buildings in the coming years. For instance, in 2021, the European Union and Vietnam free trade agreement (EVFTA) enhanced Vietnam’s exports of prefabricated buildings. The prefabricated buildings feature highly on Vietnam’s export list of lighting and furniture. Such buildings are achieving attractiveness in the commercial sector as well as residential sectors. Also, Vietnam’s government intends the building materials sector to achieve a higher level of automation by the end of 2030.

Rising Investment in Infrastructure Sector

The rising infrastructure investments are anticipated to boost the growth of the Vietnam prefabricated buildings market in the coming years, owing to the growing industrialization and urbanization. Vietnam’s population is equivalent to 1.25% of the total world population. Vietnam ranks 15 on the list of countries by population. There are various infrastructure investments across the country. For instance,

• The Ministry of Construction has announced a USD 1.3 billion credit package to build low-cost houses for workers. The package helps to ensure social welfare for vulnerable people, enhance economic recovery and development, remove the difficulties plaguing enterprises, and support the development of the housing and the real estate sector across the country.
• Industrial and logistics have emerged as the hottest sector over the past five years, with an increasing number of institutional investors entering the market. GLP announced the establishment of GLP Vietnam Development Partners with a total investment value of USD 1.1 billion in six logistics center projects with a total area of 900,000 sqm.

Additionally, growing commercial real estate investments are anticipated to impact the prefabricated construction market's income positively. For instance, there has been rising interest from European and United States investors in Vietnam’s real estate sector. For example, the Lego project, which involves an investment of over USD 1.3 billion has propelled Denmark to the seventh position in terms of total registered investment by a foreign country.

Rising opportunities in Vietnam’s green architecture

According to International Finance Corporation (IFC), the country’s green buildings sector is almost a USD 80 billion investment opportunity. Potential investment in renewable energy totals USD 59 billion, with over half of this USD 31 billion in solar photovoltaic (PV) technology and another USD 19 billion for small hydropower projects. Vietnam’s climate-smart business investment potential is also estimated at USD 753 billion, with the majority coming from the country’s transportation infrastructure needs by 2030 as per IFC. The Green Infrastructure Investment Opportunities (GIIO) report presents major trends and developments for green infrastructure and energy. It showed significant investment potential adding close to USD 100 trillion worldwide for the 2019-2030 period. It asserted that Vietnam will need to adopt greener infrastructure to compensate for the environmental implications of its economic development such as the increase in energy consumption, urban development, and greenhouse gas (GHG) emissions. Therefore, the above-mentioned factors are likely to propel the growth of the prefabricated buildings market in Vietnam during the forecast period.

Challenges: Transportation Issues Associated with Prefabricated Building Systems

Prefabricated construction is now regarded as a rapid, environment-friendly, and economical method of construction. While prefabricated towers and skyscrapers have recently become popular for bigger projects, this technique has historically been more frequently employed for modest residential buildings.. Prefabricated building solutions that are designed for performance may appear ideal in theory, but they lack customization and attention to detail. By producing items off-site rather than on-site, a separation develops between the architect and the manufacturer. Furthermore, any inexpensive substitute can put the need for prefabricated building technology in jeopardy. Therefore, the prefabricated building systems' transportation-related problems may limit the growth of the market during the forecast period.

Market Segmentation

The Vietnam prefabricated buildings market is segmented into material type, structure, application, and region. Based on material type, the market is segmented into concrete, glass, metal, timber, and others. Based on structure, the market is segmented into skeleton system, panel system, cellular system, and combined system. Based on application, the market is segmented into residential, commercial, and industrial. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among Northern Vietnam, Central Vietnam, and Southern Vietnam.

Company Profiles

Best Metal Building and Accessory Joint Stock Company, Tran Duc Joint Stock Company, QH Plus Joint Stock Company, Seico Steel Building Construction Joint Stock Company, Lien Son Thang Long Joint Stock Company, TLC Modular Pte Ltd, Dai Dung Corporation Group, Zamil Steel Buildings Vietnam Co. Ltd, and TDH Green Building Solution Co. Ltd are some of the major players in the Vietnam prefabricated buildings market.

Report Scope:

In this report, the Vietnam prefabricated buildings market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vietnam Prefabricated Buildings Market, By Materials Type:
• Concrete
• Glass
• Metal
• Timber
• Other
• Vietnam Prefabricated Buildings Market, By Structure:
• Skeleton System
• Panel System
• Cellular System
• Combined System
• Vietnam Prefabricated Buildings Market, By Application:
• Residential
• Commercial
• Industrial
• Vietnam Prefabricated Buildings Market, By Region:
• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Vietnam Prefabricated Buildings market.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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