Nguyen Thanh Nghi, then Minister of Construction, said over the past four decades, more than 120 large-scale projects of national significance have been completed. Many of them feature innovative structural designs, new construction techniques, and cutting-edge technologies, some introduced in Vietnam for the first time or holding regional importance.
Iconic projects include the Hoa Binh, Yaly, Son La, and Lai Chau hydropower plants; Can Tho bridge, Dung Quat refinery, Bai Chay bridge, Cai Lan port, Hanoi-Hai Phong expressway, Vung Tau 4 thermal power plant, Ho Chi Minh City-Trung Luong expressway, Nhat Tan bridge, Hai Van and Deo Ca tunnels, and Noi Bai and Tan Son Nhat international airports. More recently, the North-South expressway, and Nhon-Hanoi station and Cat Linh-Ha Dong urban railway lines have stood out.
Prime Minister Pham Minh Chinh, speaking at an October 3, 2024 meeting focused on accelerating infrastructure development, commended Vietnamese contractors for their pivotal role in these achievements.
Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors (VACC), noted that over the past two decades, Vietnam’s construction market has been dominated by companies from Europe, the US, Japan, and the Republic of Korea (RoK), which have been involved in major projects, either directly or indirectly. However, domestic companies have gained valuable expertise and project management skills from top international contractors through joint ventures as partners or subcontractors. In recent years, Vietnamese firms have taken the lead in major domestic projects like the North-South expressway, the Landmark 81 skyscraper in Ho Chi Minh City, the Lego Group’s manufacturing plant in Binh Duong province, and Long Thanh International Airport.
“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,” Hiep said. “If provided with supportive mechanisms, domestic firms are fully capable of delivering large-scale, internationally benchmarked projects such as the North-South high-speed railway".
At present, Vietnam’s construction market is considered a “lucrative opportunity” for international contractors. Therefore, promoting construction localisation is a long-term vision to pool domestic resources and enhance Vietnam’s economic competitiveness. To empower domestic enterprises to lead infrastructure projects and compete internationally, the sector and construction firms must fulfill six key tasks outlined by the Prime Minister in October 2024:
First, there must be a deeper recognition of the importance of key national projects to creating new development spaces, which help establish industrial zones, urban areas, and service hubs, increase land value, improve mobility for citizens, and reduce logistics and production costs, ultimately enhancing the competitiveness of goods and the overall economy.
The second task is pooling and diversifying resources from the State, citizens, businesses, direct and indirect investors, and public-private partnerships to develop strategic infrastructure in a way that harmonises their benefits.
Third, it is necessary to advance and transfer cutting-edge technology, train quality human resources, and improve smart-oriented governance capacity in business operations and project implementation.
Another task is revising and fine-tuning institutions related to site clearance, construction materials, technical standards, processes, bidding, and project contracting to ensure streamlined, favourable conditions and address institutional bottlenecks.
The fifth lies with upholding the spirit of self-reliance and internal strength, leveraging state support and international partnerships to foster growth.
Sixth, it is a must to promptly resolve institutional, resource, and workforce challenges to accelerate rapid and sustainable development of domestic construction firms and contribute to national progress.
Experts predict that the next decade will offer ample growth opportunities to the domestic construction industry. In recent years, the country’s GDP has consistently exceeded expectations, maintaining a robust growth rate of 6%-over 7%. The construction sector has played a key role, contributing 11%-12% of GDP, an indication that Vietnam still has substantial room for development in housing and urban infrastructure compared to other emerging economies in the region.
With vast potential and numerous challenges ahead, Vietnamese contractors are well-positioned to rise to new heights. This momentum is driving the construction industry forward. According to Chairman of Hoa Binh Construction Group Le Viet Hai, Vietnamese contractors have not only excelled in residential and high-rise construction but have also outperformed regional firms in general contracting and project management.
Even globally renowned Japanese and Korean contractors have acknowledged the remarkable progress of Vietnamese firms. Hai noted that 30% of his group’s projects fully embrace Building Information Modeling (BIM), an international standard for managing construction assets throughout their lifecycle, compared to just 5% for the RoK’s Hyundai Engineering & Construction.
The Vietnamese Government is ramping up investments in transportation infrastructure, allocating around 470 trillion VND (19 billion USD) from 2020-2025 and nearly 900 trillion VND by 2030. This plan aims to expand urban spaces, develop synchronous and modern technical and socio-economic infrastructure, and presents an opportunity for domestic enterprises to accelerate their growth.
To capitalise on these opportunities, especially with the upcoming 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 transportation projects
