Continuous solutions have been proposed since the beginning of the year to revive the real estate market after the extreme downturn in 2022-2023. Adjustments in planning, legal unblocking, and interest rate support have been made, yet the market, according to insiders, has not recovered as quickly as expected.
The stagnation in new construction projects has prompted related industries, including construction, building materials, and interior design, to seek opportunities abroad.
For instance, two construction giants, Hoa Binh and Coteccons, are actively pursuing overseas expansion. While Hoa Binh announced at the beginning of the year that it had secured five projects abroad with an investment of 72 million USD, Coteccons recently shared that their overseas endeavors have started to bring foreign currency into the company.
Image: Chairman of the Board, Bolat Duisenov, expressed that the domestic market is not likely to recover quickly.
Bolat Duisenov, Chairman of the Board, shared that the domestic market is not expected to recover rapidly. Hence, the company’s strategy is to diversify its domestic portfolio while aggressively pursuing exports.
Coteccons has already commenced construction projects in several countries. Although overseas projects remain modest in their revenue structure, there are positive signs.
For example, Coteccons is currently executing a VinFast project in India, following their consecutive collaborations with VinGroup and VinFast in Vietnam. In March 2024, Coteccons established a representative office in Indonesia to participate in tenders and execute projects in this market….
Similarly, for furniture and building material companies, Mr. Nguyen Chanh Phuong, Vice Chairman of the Ho Chi Minh City Association of Fine Arts and Wood Processing (HAWA), recently stated that although there is hope for a recovery in the construction industry, it is expected that real estate businesses will only show a positive response by mid-2025 at the earliest. As a result, most wood and furniture companies are focusing on boosting exports.
This strategy is supported by the fact that Vietnam is benefiting from the trade war between the US and China. As a consequence, buyers of construction materials and furniture who previously focused on the Chinese market are now looking for alternative sources. This presents a significant opportunity for Vietnamese manufacturers of decorative furniture and building materials.
Image: Mr. Nguyen Chanh Phuong, Vice Chairman of HAWA, stated that a positive reaction from real estate businesses is not expected until the second half of 2025.
According to statistics from the General Department of Customs, Vietnam’s wood and wood product exports reached 10.24 billion USD in the first eight months of 2024, a 20.6% increase compared to the same period last year.
Commenting on the industry’s export situation in the coming months, HAWA representatives said that exports are expected to remain positive, predicting that total wood and furniture exports would reach 14.5-15 billion USD by the end of the year.
The main markets for these products continue to be the US, China, and Japan, which have been investing significant amounts in procuring Vietnamese wood and wood products.
Mr. Nguyen Quoc Khanh, Chairman of the Board of AA Architectural Construction Joint Stock Company, shared that AA’s export orders have stabilized and are increasing for interior projects abroad, including in the US and the Middle East, as well as famous tourist destinations worldwide. Although the number of orders has not yet reached the 2022 level, it is very promising compared to the beginning of the year.
“Regarding the domestic market, orders were slow in the first six months, but we are hopeful that 2025 will be more favorable. In the meantime, as the market remains challenging, we are focusing on product diversification, enhanced marketing, and attracting more customers,” Mr. Khanh shared.
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