Vietnam’s construction sector is on the cusp of a transformative era, propelled by a surge in mega, world-class projects that are not only boosting the nation’s global reputation but also ushering in a new phase of development. Over the past four decades, the country has completed more than 120 large-scale projects of national significance, many of which feature innovative structural designs, new construction techniques, and cutting-edge technologies introduced in Vietnam for the first time or holding regional importance.
Iconic projects such as the Hoà Bình, Yaly, Sơn La, and Lai Châu hydropower plants, Cần Thơ Bridge, Dung Quất Refinery, Bãi Cháy Bridge, Cái Lân Port, Hà Nội-Hải Phòng Expressway, Vũng Tàu 4 thermal power plant, HCM City-Trung Lương Expressway, Nhật Tân Bridge, Hải Vân and Đèo Cả tunnels, and Nội Bài and Tân Sơn Nhất international airports have set a high bar for future developments. More recently, the North-South expressway, and Nhổn-Hà Nội station and Cát Linh-Hà Đông urban railway lines have stood out as testament to Vietnam’s growing prowess in infrastructure development.
Prime Minister Phạm Minh Chính recently commended Vietnamese contractors for their pivotal role in these achievements, highlighting their growing expertise and project management skills. Nguyễn Quốc Hiệp, chairman of the Vietnam Association of Construction Contractors (VACC), noted that while the construction market has historically been dominated by companies from Europe, the US, Japan, and South Korea, domestic firms have gained valuable experience through joint ventures and partnerships. This has enabled them to take the lead in major domestic projects, including the North-South Expressway, the Landmark 81 skyscraper in HCM City, the Lego Group’s manufacturing plant in Bình Dương Province, and Long Thành International Airport.
The success of these projects has bolstered the government’s confidence in the capabilities of domestic contractors. According to Hiệp, “These tangible results serve as the foundation for the Government’s strong confidence in the growth of domestic contractors, especially when it comes to entrusting Vietnamese enterprises with major projects.” He further emphasized that with supportive mechanisms, domestic firms are fully capable of delivering large-scale, internationally benchmarked projects such as the North-South high-speed railway.
To empower domestic enterprises to lead infrastructure projects and compete internationally, the sector must fulfill six key tasks outlined by the Prime Minister in October 2024. These tasks include recognizing the importance of key national projects, pooling and diversifying resources, advancing and transferring cutting-edge technology, revising institutions related to construction, upholding self-reliance and internal strength, and promptly resolving institutional, resource, and workforce challenges.
The construction sector’s growth is further fueled by Vietnam’s robust economic performance, with GDP consistently exceeding expectations and maintaining a growth rate between 6 per cent and over 7 per cent. The construction sector has contributed 11-12 per cent of GDP, indicating substantial room for development in housing and urban infrastructure compared to other emerging economies in the region.
Chairman of Hoà Bình Construction Group Lê Viết Hải highlighted that Vietnamese contractors have not only excelled in residential and high-rise construction but have also outperformed regional firms in general contracting and project management. He noted that 30 per cent of his group’s projects fully embraced Building Information Modeling (BIM), an international standard for managing construction assets throughout their lifecycle, compared to just five per cent for South Korea’s Hyundai Engineering & Construction.
The Vietnamese Government is ramping up investments in transportation infrastructure, allocating around VNĐ470 trillion (US$19 billion) from 2020-2025 and nearly VNĐ900 trillion by 2030. This plan aims to expand urban spaces, develop compatible and modern technical and socio-economic infrastructure, and presents an opportunity for domestic enterprises to accelerate their growth.
To capitalize on these opportunities, especially with the coming high-speed railway project, Vietnamese contractors must adopt a forward-thinking approach. Now is the time for them to invest in equipment, train engineers and workers, and master construction technologies, paving the way to become primary contractors for major national transport projects.
