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What’s the future for Vietnam’s construction industry?

Saturday - 03/12/2016 14:06
It is the right time for Vietnam’s construction conglomerates to think of developing the international market, or they may lose the home market in the future because of outdated technology, lack of management skills and brain drain.
What’s the future for Vietnam’s construction industry?
Until three years ago, foreign contractors nearly covered all the large and valuable construction works, from houses to hotels and trade complexes in large cities in Vietnam, especially works developed by foreigners or professional real estate developers. 

There was nearly no opportunity for Vietnamese enterprises to become the EPC contractor (engineering, procurement, construction) of the projects.

However, thing are getting different. More and more Vietnamese names such as Coteccons and Hoa BInh Corp have appeared in the market. They joined the bids to become the EPC contractors in large projects. This means that Vietnamese construction companies have the capability to compete equally with foreign contractors.

Coteccons won over foreign contractors to become the main contractor in a series of large projects namely The Landmark 81, Ho Tram Strip in Ba Ria-Vung Tay province, Goldmark City and Diamaond Island. 

Meanwhile, Hoa Binh Corp has been chosen as the EPC contractor of Cocobay, a tourism & recreation complex in Da Nang City with huge investment capital of VND11 trillion.

However, though the domestic market is still large with a lot of projects on multi-story buildings, trade complexes and hotels for exploitation, Le Viet Hai, president of Hoa Binh Corp, said that it is the right time for Vietnamese enterprises to think of expanding their business into the international market, or they would lose the domestic market in the future.

Vietnamese workers are recognized as industrious and clever with their hands, which are the biggest advantages of Vietnamese enterprises. This also explains why South Korean and Japanese contractors invite many Vietnamese to work for their construction works overseas.

Why don’t Vietnamese enterprises think of joining foreign markets and implementing projects with Vietnamese skilled workers?

The director of a real estate firm also said there are many reasons for Vietnamese construction companies to march towards the world market. 

“The international market is large with the high prices which are double or triple the prices in Vietnam,” he explained.

“The development of the overseas markets will also help Vietnamese contractors improve their execution capability and management technology."

The director went on to say that Vietnamese enterprises should look for jobs in the international market.

Citing an official report which says that Vietnam has 9,000 engineers in the construction sector, which is three times higher than the world’s average level, he said the domestic market would become saturated one day.

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