Vietnam's VN Index opens little changed at 1,493.41

Vietnam's VN Index opens little changed at 1,493.41

The Vietnam Ho Chi Minh Stock Index (VNINDEX) opened the trading day on July 2, 2025, at 1,493.41, reflecting a marginal change from the previous day's close. The index, a key indicator of Vietnam's stock market performance, was influenced by several economic and market factors.

The construction equipment market in Vietnam, with a projected size of 2,575 units in 2024, is expected to grow at a compound annual growth rate (CAGR) of 11.25% to 4,881 units by 2030 [2]. The market is driven by infrastructure investments, particularly in earthmoving equipment, with excavators leading the segment. Chinese manufacturers, notably SANY, hold a significant market share [2].

The Vietnamese government's planned investment of over USD 25 billion in public infrastructure projects is anticipated to boost the construction equipment market. This investment, which includes projects in the transport sector, is expected to support the growth of the market by creating new development spaces and reducing business logistics costs [2].

However, the market faces challenges such as labor shortages and rising material costs. The country is experiencing a significant shortage of skilled labor, particularly in Ho Chi Minh City, which is impacting various industries, including construction. High labor turnover, due to low wages and inadequate infrastructure, exacerbates the issue [2].

Moreover, the increase in building material prices has made real estate projects more expensive. In 2024, prices of building materials, including iron and steel, increased by 30%-40%, pushing up the overall price of real estate projects in the country. This surge in prices is due to a mismatch between demand and supply, driven by rising government investment in infrastructure and housing projects [2].

Despite these challenges, the Vietnamese construction equipment market is expected to grow steadily. The market is shifting towards sustainable options, influenced by eco-friendly initiatives and government support for electric construction equipment. The introduction of dual excavators, which can perform multiple functions, is also expected to support the growth of Chinese companies in the market [2].

In conclusion, while the VN Index opened little changed, the Vietnamese construction equipment market is projected to grow significantly, driven by infrastructure investments and government initiatives. However, challenges such as labor shortages and rising material costs may impact the market's growth trajectory.

References:
[1] https://www.bloomberg.com/quote/VNINDEX:IND
[2] https://finance.yahoo.com/news/vietnams-construction-equipment-market-double-080900914.html