With a scale touching tens of billion US dollars, Vietnam’s construction machinery market proves a magnet to foreign manufacturers and distributors.
Tong Van Nga, chairman of Vietnam Association for Building Materials, noted that despite enduring heavy effects from the pandemic, the country’s construction sector still expanded 8-8.5 per cent in 2022.
Also, the urbanisation pace inched up 1.2 per cent reaching 41.7 per cent last year, instrumental to a more vibrant machinery and equipment market to feed investment and construction needs.
|Total machinery and equipment import value is expected to surge 3-6 per cent this year |
Amid exacerbating competition between local and foreign players, local contractors have embraced radical changes, capitalising on machinery and technology investment to improve their execution and management expertise.
Machinery and technology development helps construction businesses to boost efficiency and precision in execution, from savings on materials and fuel, to personnel costs.
|Machinery and technology development helps construction businesses to boost efficiency and precision in execution. |
“The demand for importing and updating new machinery and equipment for the construction sector is expected to further swell to underpin the sector’s anticipated growth, approximating 6.5 per cent in 2023,” said Nga.
A representative from Tin Quang Equipment JSC (TQEQ), an authorised agent providing branded machinery for partners from the US, Japan and South Korea in the Vietnamese market, said that the country had enticed many foreign distributors of machinery and equipment in the construction sector.
Despite slightly diminishing revenue figures in the last two years due to pandemic effects, the market signals are improving, the source added.
Better market signals are also evident in the number of foreign businesses registered to join Contech Vietnam 2023, an international exhibition tailored to Construction, Mining and Transport - Machinery, Equipment, Technology, Vehicles and Materials slated for April.
Le Thi Lan Anh, director of Hanoi Advertising and International Fair JSC, the fair organiser, said she was surprised with the high number of firms from Asia and Europe having registered to participate in the fair, and the occasion would help local peers to reach equipment innovation targets for improved efficiency and work quality.
Nguyen Thi Ngoc Linh, director of Green Laser Co., Ltd., a firm under China’s Senfeng Group active in providing construction machinery and equipment such as laser cutters and welders, will soon join Contech Vietnam 2023 and said that from late 2022 Senfeng has worked on a plan to come back Vietnam to enhance business networking after a lull due to the pandemic.
“Displaying products at Contech Vietnam 2023 marks this comeback,” said Linh.
The country’s spending on machinery and equipment imports is expected to surge 3-6 per cent in 2023. Last year, Vietnam’s total import value amounted to $358.9 billion, up 7.8 per cent on-year.
| ||RoK construction firms interested in Vietnamese market |
With the domestic housing market entering a period of stagnation, many construction companies of the Republic of Korea (RoK) have amended their business strategies, in which many choose Vietnam as their destination, the RoK’s Newdaily newspaper reported.
| ||Vietnamese suppliers to become part of Samsung’s global value chain |
Joo Ho Choi, general director of the Samsung Vietnam Complex, was the only representative from a foreign-invested enterprise to speak at a conference on February 12 in Quang Ninh on the government's action plan to implement Resolution No.30-NQ/TW dated November 23 from the Politburo on socioeconomic development, national defence, and security in the Red River region to 2030, with a vision to 2045.
| ||Manufacturers backing local suppliers |
Global manufacturers are increasingly offering solutions to foster the competitiveness of the country’s supporting industries, thus creating a solid foundation for a shift in the global supply chain.
By Yen Thuy