Ho Chi Minh’s construction materials market expected to recover with property market

The construction materials market will benefit from the removal of the property market’s bottlenecks and public construction projects 

Skyscrapers under construction in Ho Chi Minh City, Vietnam. AJNguyen/Shutterstock

As Ho Chi Minh city’s construction materials market annual peak season leads off in the first quarter, it is expected to further recover from the removal of legal bottlenecks from the housing market, including the control of the COVID-19 pandemic, reported Viet Nam News 

Lê Hoàng Châu, chairman of the HCM City Real Estate Association, mentioned that it would recuperate in the first quarter, as Vietnam has effectively contained the pandemic, increasing business confidence. 

The EU-Vietnam Free Trade Agreement (EVFTA) and growing domestic consumption would also push the retail industry, particularly foreign retailers from the EU that would increase office space demand, he added.  

Head of market research at Savills Vietnam Võ Thị Khánh Trang said high-end condos in the city remained sought-after despite the pandemic, and prices shouldn’t fall any time soon.  

Around 20 housing projects will also be developed in Ho Chi Minh City in the first half of 2021. 

The construction market’s dynamic is closely linked with the property market. The sector also expects to benefit from the public investment projects to be launched soon 

Phạm Văn Bắc, director of the Ministry of Construction’s Department of building materials, mentioned that another factor to the sharp rise of the construction materials market is due to infrastructure impairment from the floods and landslides in the central region.  

Increased construction investment from major infrastructure projects like the North-South Expressway would greatly benefit the industry, said VNDirect Securities Company.  

More: Ho Chi Minh City reserves districts along metro lines for high-rise apartments

It is forecasted that the market would be valued at VND23.7 trillion (USD1 billion) this year.  

China’s proposals to invest in Vietnam’s infrastructure would cause demand for steel and cement to skyrocket, predicting that the trend would carry on until mid-year at minimum.  

In the first nine months of 2020, the steel industry exported almost USD3.65 billion, with China being the largest buyer, purchasing 28.5 percent of the exports, followed by Cambodia and Thailand.