Rise in Infrastructure Construction
On March 10, during a stopover in Portland, OR, My Tran, Senior Commercial Specialist from the U.S. Consulate, Ho Chi Minh City provided an executive briefing on market trends, opportunities and tips for overcoming challenges in the Vietnam ACE/Building products sector during a roundtable discussion that was hosted by the U.S. Commercial Service-Portland and the Evergreen Building Products Association.
During the discussion, Mr. Tran reviewed Vietnam's economy and construction market. He said that Vietnam's economy has slowed from a robust period that spanned 2000-2010, yet demand for new hotels, resorts, high rise condominiums is still increasing. To stimulate sales of an excess supply condominiums, the Vietnam government reduced taxes for first time homebuyers and allocated $1.4 billion to subsidize the purchase of low income housing.
He added that despite a residential housing market that is still in recovery, construction of transportation infrastructure (airports, highways, and a metro system) has been brisk thanks to Organization for Economic Cooperation and Development loans and international investment. He noted that these projects are excellent opportunities for architecture and design services, erosion control products, and concrete and heavy machinery.
The market for green and energy efficient building materials and design services is also expected to grow as Vietnam's government continues to promote their use. The Vietnam Ministry of Construction is in the process of drafting green constructions standards and developing a rating system for green and energy efficient projects. These standards are expected to be complete by 2020. The Vietnam Green Building Council also established Lotus, a standard that is similar to the LEED green building rating system.
For more information about the market for construction materials and services in Vietnam, or for assistance with matchmaking meetings with Vietnamese clients, contact the Department of Commerce.