President of HBC: Vietnam can export the construction industry

Vietnam will dominate the global construction market if it implements several measures to boost competitiveness, as well as many favorable industrial circumstances…

The global construction market is now estimated to be around 12 trillion USD, and by 2030, that value is expected to rise to 19 trillion USD. Vietnam’s building industry barely generates 50–60 billion USD annually, which is 200 times smaller than the global market.

The global construction market is now estimated to be around 12 trillion USD, and by 2030, that value is expected to increase to 19 trillion USD. Vietnam’s building industry barely generates 50–60 billion USD annually, which is 200 times smaller than the global market.

Vietnam has also developed the most advanced construction techniques in the world. Vietnam already has indigenous contractors that are capable of displacing international contractors whereas the neighboring nations are still largely dependent on foreign contractors. Even the engineers working on building projects in the Philippines, Thailand, and Malaysia are now attempting to use the same building techniques Vietnam did many years ago.

If Vietnam implements numerous strategies to increase competitiveness with numerous advantageous conditions for the business, it will dominate the global construction market.

That is, there are now a lot of construction engineers in Vietnam. The majority of young people in industrialized nations do not enjoy working in the construction business, which has an average of just 3,000 construction engineers per million people while reaching up to 9,000 in Vietnam, which is three times the global average. This is a huge benefit, but if you don’t know how to take use of it, it will become a burden when the market for new development becomes saturated.

Vietnam exports a wide variety of building supplies to a large number of international destinations. Since 2017, Vietnam has been ranked first in the world for exports of cement and clinker, and as of 2019, it has also overtaken other nations for exports of furniture. This is a crucial foundation for developing a tactical competitive advantage in the global construction industry.

However, domestic construction industries are struggling with several issues, including the Covid-19 epidemic’s effects and the influence of real estate businesses’ tougher control over financing sources. Many investment projects were delayed due to the delay in paying contractors.

The Russian-Ukrainian conflict had a devastating effect on the global economy, resulting in a decrease in foreign investment that was less than anticipated, increasing costs, and many large-scale contractors that were previously doing well. excellent, but recently faced the possibility of insolvency without government assistance.

Seven strategic suggestions
Mr. Le Viet Hai suggested seven strategic steps that the building sector should take to grow to successfully export it overseas.

First off, the government encourages the dissemination of information about the worldwide market to help construction companies locate the optimal location for their operations. Because building prices in industrialized nations are presently 3 to 8 times more than in Vietnam, according to HBC’s study. Normal building costs in our nation range from under $500 per square meter to between $1,500 and $4,000 in other nations.

Second: The Government should focus on conditions relating to the export of construction services to the general contractor while negotiating bilateral or multilateral trade agreements, not merely on the export of industrial and agricultural products. business, seafood…

Thirdly, administrative processes should be improved to support the growth of the construction industry, notably those relating to foreign investment to make it simpler for companies to do business internationally.

Fourth: Enhance the caliber of direct and indirect workers in the building business.

Fifth: Government assistance for the development of a more fully developed ecosystem in the Vietnamese construction sector, which will link enterprises in the sector with allied sectors to boost their competitiveness globally. economic.

Sixth, improved circumstances should be created to allow domestic construction companies to serve as general contractors for significant state investment projects.

Seventh: There is a way to boost the export of construction services by promoting the Vietnamese national brand. When the construction sector matures, strong national brand recognition will be a crucial competitive advantage.

The following associations should work together to build an ecosystem for the construction industry: General Association of Construction, General Association of Building Materials, Association of Construction Contractors, Association of Mechanics Construction, Construction Design Consultant Association, Construction Project Management Association, Construction Informatics Association, Construction Engineers Association, Architects Assoc.