Infomation

Top 10 established manufacturers of construction and building materials 2021

12 min read

This is a result of independent research of the Vietnam Report, built on scientific and objective principles. the manufacturer’s credibility is assessed based on the research on the impacts of financial conditions, business presence on social media, and the appreciation from related parties in the industry, specifically including (1) financial capacity shown on the latest financial statement; (2) business’s credibility on social media assessed by the Media Coding method – coding business’s articles on influential media channels; (3) investigating on the research subjects and related parties in 2020 – 2021 duration is also used as an additional factor to identify the business’s position in the industry.

List number 1: Top 10 established construction contractors 2021

  • Coteccons Construction Joint Stock Company
  • Hoa Binh Construction Group Joint Stock Company
  • Ricons Construction Investment Joint Stock Company
  • Unicons Investment Construction Company Limited
  • Vietnam Construction And Import – Export Joint Stock Corporation
  • Fecon Joint Stock Company
  • Ecoba Vietnam Joint Stock Company
  • Newtecons Investment Construction Joint Stock Company
  • Delta Corporation Limited
  • Phuc Hung Holdings Construction Joint Stock Company

Credit: Vietnam Report. Top 10 Established Manufacturers Of Construction And Building Materials 2021, March 2021

List number 2: top 5 established Electro-mechanical contractors 2021

  • E.E Mechanical & Electrical Engineering Joint Stock Company
  • SEAREFICO Engineering and Construction Joint Stock Company
  • Doan Nhat Mechanical and Electrical Joint Stock Company
  • SIGMA Engineering Joint Stock Company
  • HAWEE Mechanical and Electrical Joint Stock Company

Cre:  Vietnam Report. Top 10 Established Manufacturers Of Construction And Building Materials 2021, March 2021

List number 3: Top 10 established building materials companies 2021

  • Hoa Phap Group Joint Stock Company
  • Viglacera – CTCP Corporation
  • Viscostone Joint Stock Company
  • Tien Phong Plastic Joint Stock Company
  • Hoa Sen Group Joint Stock Company
  • An Cuong Wood Working Joint Stock Company
  • Binh Minh Plastics Joint Stock Company
  • Ha Tien 1 Cement Joint Stock Company
  • Phan Vu Investment Corporation
  • Siam City Cement Company Limited

Cre: Vietnam Report. Top 10 Established Manufacturers Of Construction And Building Materials 2021, March 2021

List number 4: Top 5 established building materials companies 2021 

  • Viglacera – CTCP Corporation
  • Viscostone Joint Stock Company
  • Dong Tam Dotalia Joint Stock Company
  • CMC Joint Stock Company
  • VITTO Corporation

Cre: Vietnam Report. Top 10 Established Manufacturers Of Construction And Building Materials 2021, March 2021

List number 5: Top 5 established building materials companies 2021 – Iron, Steel, Corrugated Iron

  • Hoa Phap Group Joint Stock Company
  • Hoa Sen Group Joint Stock Company
  • Ton Dong A Joint Stock Company
  • Nguyen Minh Steel Group Joint Stock Company
  • Ton Phuong Nam Joint Stock Company

Cre: Vietnam Report. Top 10 Established Manufacturers Of Construction And Building Materials 2021, March 2021

List number 6: Top 5 established building materials companies 2021 –Panel Door – Profile – Partition Wall: plastic, aluminum glass, gypsum

  • EUROWINDOW Joint Stock Company
  • Vinh Tuong Industrial Corporation Company (Saint-Gobain Corporation)
  • BM Windows Joint Stock Company
  • Dong A Plastic Group Joint Stock Company
  • Austdoor Group Joint Stock Company

Cre: Vietnam Report. Top 10 Established Manufacturers Of Construction And Building Materials 2021, March 2021

The Vietnam construction industry was stepping into its “maturation” in 2016. Businesses in the industry have gradually confirmed their position in the construction, building materials, architecture, and urban planning – construction – and development sector.

The building capacity has been improved to better meet the needs of construction, even the large-scale buildings which require high quality, innovative technology in the country and abroad leading the step-by-step foreign businesses replacement, and positively transforming the country toward the appearance of more modernity.

However, the country is in its “maturation”, with 2 great difficulties the construction industry has to conquer: the first one is the “pause” of the real estate market (REM) – the industry’s supplying source in 2019; the second one is the COVID-19 pandemic taken place in 2020.

According to the General Statistics Office of Vietnam, in the past year, the construction industry has increased by 6.76%, which is a significant decrease compared to the growth rate in the 2015 – 2019 period. It has contributed 0.5% to the growth rate of the total value added of the entire economy.

The business environment in 2020 has witnessed a significant legal improvement, though, there are still presences of insecurities.

To assess the business environment of the past year, most of the businesses who took part in the investigation of the Vietnam Report confirmed that it was better than the previous year (41.2%).

While about 29.4% of the businesses appreciated that the business environment was worse, with a considerable reduction compared to the 87.5% of the previous year.

If in 2019, the market saw a pause caused mainly by legal elements, in 2020, the difficulties mainly came from unstable periods due to the pandemic. In which, the changes in the cost of production ingredients are continually one of the top difficulties, with the agreement from 66.7% of the construction companies and 71.4% of the building materials companies.

Natural disasters and weather conditions impact vastly the industry activity of 58.3% of the construction companies. Moreover, social distancing periods caused by the pandemic bring a big effect to the workforce and their mentality, making the situation worse.

Besides, some remaining problems in the previous period like the reduced number of approved projects, administrative procedures, legal documents or tendering process, lack of fundings, etc, also create a respectable pressure on the business’s development.

  • Reduction of approved projects
  • Price fluctuations of production ingredient
  • Natural disasters and weather conditions
  • Competition with businesses in the country and abroad
  • Administrative procedures, legal documents
  • Problems in the Tendering and bidding process

COVID-19 has changed the way of operation of the world, thereby impacting significantly the construction sector – the largest sector in the global economy making up 13% of the GDP.

The biggest changes are: (1) there are more giant and wise investors involved in the construction with higher demands for the project’s scale and distribution; (2) Growing occurs in the level of interest of customers toward “smart” houses (digital applications like IoT, using and managing energies effectively, etc.); (3) Customers pay more attention to the durability of products; (4) Skilled workers become scarce and expensive; and (5) Building regulations and principles are changing to be more harmonized to create standard construction methods.

A changing market, with technological advances, and new groundbreaking factors will be a huge kick to change the entire activity of the industry. The kicks like new production technologies, product digitization, sales channels digitization, materials with innovative technologies are predicted to increase compared to the previous time.

The mentioned changes above have been making the whole construction and building materials industry, as well as businesses in it gradually turn into a completely new look, become stronger and more durable. However, there is a long road ahead. Although the global economy is healing from a year of interruption due to the COVID-19 pandemic, the growth rate only reaches 4% in 2021.

Meanwhile, according to FMI, the construction activity is typically 12 to 18 months behind the overall downturn. Particularly for Vietnam – one of the 10 countries with the highest GDP growth rate in the world, one of the 16 most successful emerging economies in the past year, this country has completely a basis to expect a brighter economic outlook in this year.

31.6% of businesses in the construction and building materials industry who took part in the investigation of the Vietnam Report said that the business situation would be better in the first 6 months of the year. While 47.4% of businesses expected the growth rate of the next 12 months would occur.

What’s noteworthy is that about 15.8% of businesses assumed that there would be a boom in certain segmentation and the regional markets in the next 6 months.

It is also the rule of necessity. First of all, the economy is like a spring compressed in a year of interruption due to the pandemic, and it is ready to rebound. According to some experts, there will be a fierce race soon to make up for the losses in the past. The driving force of the race is the livelihood of businesses.

Second, the government regulatory bodies have taken positive actions in solving problems in the administrative procedures that cause the market’s slowdown in the 2019 – 2020 period. Moreover, the successful XIII Congress with a new more dynamic, and drastic management apparatus is also expected to be a factor creating momentum for businesses to recover and develop after the pandemic.

Third, the epidemic situation in the world has improved a lot with the introduction of vaccines. In summary, the convergence of all mentioned factors above will create a great opportunity for the development of the market in 2021.

Alongside the changes and interruptions analyzed above, the pandemic has strengthened the appearance of trends. These trends have important impacts on shaping the market in the post-COVID-19 era. The investigation conducted by Vietnam Report has figured out some prominent trends as below:

  • Customer centricity and brand building
  • Durability
  • Investment in technology and infrastructures
  • Investment in human and resources, workforce
  • Managing value chains and integrating with industry-level value chains
  • Specialization
  • Strengthening the administration system
  • Product-based approach
  • Product-based approach

Customer centricity and brand building. As in traditional consumer industries, a strong brand can connect customers more closely with the products provided by the contractors or the building material suppliers, while helping to build and maintain relationships with existing customers, as well as attracting new ones. Building a strong brand takes a lot of time.

To win the trust and the respect of customers, businesses need to show that committing with customers is their ideal of life. Therefore, the customer-centric approach (customer centricity) becomes a prominent trend, especially in a market containing many changes, and in a market in which the pandemic has turned customer’s lives upside down and impacted significantly on the customer behaviors.

The primary idea of this method is to design, build products and services to provide customers the best experience. To do that, it is a must to understand the psychology of customers, understand what they need and want, thereby establishing a buyer journey and determining an effective marketing strategy.

A good product is not enough to keep customers stay by the business’s side, however, when a good product comes with a service that hits the customer’s psychology will attract customers immediately and bring them through the business’s sales funnel.

Durability: for the building materials industry, cement production contributes up to 7%-8% of the world’s carbon dioxide emissions. Therefore, the pressure to cut out the emission in this industry is forecasted to increase significantly in the next 3 decades. Businesses in the industry are currently attempting to achieve the goal of reducing emissions by increasing the use of alternative materials in cement production.

In addition to the discussion of reducing carbon dioxide, risks encountered in climate are growing and requiring a countermeasure. Businesses need to consider the environmental impact when sourcing materials, and the production will be more sustainable (e.g. using electric machinery, renewable energy), and the supply chain will be optimized for durability and resilience. Moreover, it is also important to consider the consumption of water, dust, noise, and waste during production.

Investment in technology and infrastructures: in the past few years, many leading construction companies have applied new technology and initially take digitization as the core of their work. COVID-19 has contributed to accelerating the use of digital technologies and digital processes in the industry. From 2021 on, there will be even more opportunities for businesses to reimagine how they use technology and data to build their resilience.

In which, the key to build resilience relies on the interaction on the data (related parties who distributed different projects will communicate more effectively, and thence, streamlining the flow of information with others). The common data exchange framework (CDX) allows groups of projects to define the requirements for their potentiality of interaction to use machines and artificial intelligence.

Investment in human and resources, workforce. Businesses in the industry will continue to strengthen in developing a capable workforce. A diverse workforce with more experience and skills will improve the decision-making process, increase employee engagement and loyalty, and raise profits.

In addition, as discussed above, innovation in the use of technology will motivate the industry to become more durable and resilient. That requires investment in an intelligent, educated, and diverse workforce, with strategic leaders who collaborate with customers and partners to bring success to the company.

Managing value chains and integrating with industry-level value chains. This trend has taken place recently and is mentioned in the report of the industry of real estate – construction – building materials 2020 by the Vietnam Report.

It is easy to see that businesses are gradually moving to own or control key activities along the value chain, such as design and engineering, selected component manufacturing, supply chain management, and on-site assembly. Businesses can achieve this goal through vertical integration or strategic cooperation. Integrating or controlling value chains will reduce conflicts and fasten innovation processes.

Specialization: to improve the profit margins with differentiation, businesses in the industry start to specialize their target segments and niches to build up competitive advantages through the use of different building materials, segments, or methods.

The transformation in terms of specialization also requires businesses to advance their knowledge and ability to maintain their competitive advantages. It is obviously a must for businesses in the industry to consider carefully the effectiveness and the brand positioning when conducting specialization more deeply, along with the benefits and risks that might come when they start to invest more diversely.

Strengthening the administration system. To create long-term resilience and increase the market share, businesses need to look inside themselves and strengthen the inter-organizational system first. No strategies, technologies, and executive visions will gain success unless workers agree with the company mission, and everyone heads toward achieving common success.

Product-based approach. Prefabricated construction is one of the typical examples of a product-based approach. Prefabricated construction means that components and related services are designed in a standardized way, yet flexibly customized, and manufactured by outsourced factories, and shipped and assembled on site.

The continuously repeated production will take place in the same way as in other industries, such as shipbuilding or car manufacturing with the assembly lines in a safe environment with no waste. To manufacture effectively and learning through the repeated production, estate developers, building material manufacturers, and contractors will need to specialize the segments of the end-users.