Industry News

1、 Market demand driving factors
Rapid growth in the construction industry
Vietnam's infrastructure investment continues to increase, and the construction of the new capital has driven a surge in demand for building decoration materials. Light steel keel, as the core material for partition walls and ceilings, has benefited significantly. In 2024, the growth rate of the construction industry will reach 7.3%, with a market size of approximately 60 billion US dollars and strong demand for building materials.
The urbanization rate has exceeded 40%, and the vacancy rate of commercial real estate (such as office buildings in Ho Chi Minh City) is as low as 8%, promoting the application of light steel keel in public facilities and residential buildings.
Policy and climate adaptability
The government is promoting green building certification, and light steel keel has received policy support due to its recyclability, which is in line with the goal of renewable energy accounting for 35% by 2030.
The geographical environment of high temperature, rainy weather, and frequent typhoons requires building materials to have high wind and earthquake resistance performance, and the advantages of light steel keel structure are prominent.
Expansion of emerging application scenarios
The customized home market is booming: From 2023 to 2024, Chinese customized home enterprises will see a 32% increase in revenue in Vietnam, and the penetration rate of light steel keel in partitions and customized cabinets will increase.
Popularization of prefabricated buildings: The government promotes prefabricated housing systems, and light steel keel composite wall panels have become the preferred solution due to their fast construction and low cost.

2、 Current situation and challenges of supply chain
Insufficient local production capacity and high dependence on imports
Vietnam has a crude steel production capacity of 30 million tons, but the output in 2023 is only 19 million tons. The raw materials for light steel keel are highly dependent on imports (China accounts for 62% of the total steel imports).
About 300 local building materials companies have outdated technology, and their mid to high end light steel keel products mainly rely on imports from China and Germany.
Trade barriers and localization opportunities
Vietnam has imposed anti-dumping duties on imported steel (with a maximum tariff of 27.83% on Chinese hot-rolled coil steel starting from July 2025) in 2021, forcing foreign-funded enterprises to localize production (such as Beixin Building Materials and Taiermei setting up factories in Vietnam).
The RCEP agreement reduces tariff costs, and Chinese enterprises can enjoy tax incentives of "4 exemptions and 9 reductions" by setting up factories in industrial zones.

3、 Competitive landscape and entry barriers
Market participant strategy
Local enterprises dominate the mid to low end market (such as building hardware accessories), but their technology is weak; Chinese enterprises seize market share through cost-effectiveness and enter the high-end field through technology output (corrosion-resistant coatings).
The distribution channels are concentrated in traditional markets such as Hanoi Building Materials Distribution Center and chain supermarkets (Mitra 10), and the local dealer network is crucial.
Core access barriers
Compulsory certification: It is required to pass the Vietnamese CR mark certification or international standards (such as EN 13501-2 fire protection standard).
Cost pressure: Shortage of industrial land drives up rent, coupled with unstable power supply (2 power outages per week in the Ho Chi Minh City industrial zone), resulting in a 5-8% increase in production costs.