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ASEAN’s Leading Manufacturer Generates $47 Billion Annually

According to the recently released report "Vietnam Building Materials Market Analysis – Opportunities and Forecast 2024-2031" by Ireland-based market research firm GMI Research, Vietnam’s building materials market is projected to expand steadily in the coming years.

Statistics from the Ministry of Construction in June 2024 indicated that the building materials, cement, iron, and steel industries generated annual revenues of nearly $47 billion, accounting for approximately 11% of Vietnam’s GDP.

Over the past decade, Vietnam has significantly enhanced self-sufficiency in building materials production, achieving international quality standards. Notably, Vietnam's building materials industry ranks among the top in ASEAN regarding production organization, business practices, environmental standards, and technological advancement.

Việt Nam đang đạt những bước tiến về sản xuất và xuất khẩu vật liệu xây dựng. (Ảnh: IT)

Key building materials such as cement, ceramics, and construction glass have witnessed production capacity increases ranging from several dozen to hundreds of times over the past 40 years.

Speaking at the October 2024 seminar "Developing Vietnam’s Modern and Sustainable Building Materials Industry," Dr. Nguyen Quang Hiep, Director of the Building Materials Institute (Ministry of Construction), highlighted the international market presence of various Vietnamese building materials, including clinker, energy-saving glass, ceramic tiles, stone tiles, sanitary ceramics, and industrial lime.

“These achievements not only boost production volume and efficiency but also enhance Vietnam’s global industry standing,” emphasized Dr. Nguyen Quang Hiep.

According to German market data provider Statista, Vietnam’s building materials and hardware market is projected to grow annually by 2.57% during 2024-2028.

Tile manufacturers are proactively expanding into international markets. (Photo: Bao Xay Dung)

 

Vietnamese “Star” Dominates U.S. Market: Continuous Victories

Vietnam’s tile industry exemplifies remarkable growth amid fierce competition in domestic and export markets, motivating manufacturers to upgrade production processes and product quality.

Notably, Viglacera Corporation has emerged prominently, supplying tiles for projects such as the U.S. Capitol’s cooling towers.

In a recent interview published by VTV News on February 5, Rod Applegate, Chairman of Tower Engineering (U.S.), shared that extensive global sourcing was conducted for tile suppliers for the Capitol project. “To date, only Vietnamese enterprises meet both quality and environmental standards,” he affirmed.

 

Mai Xuan Duc, General Director of Viglacera Tiles Trading Joint Stock Company, confirmed that Viglacera tiles were selected for the cooling tower of the U.S. Capitol’s air conditioning system. The first shipments were exported to the U.S. at the end of 2019, marking a significant milestone in penetrating the notoriously stringent U.S. market.

On January 17, 2020, Viglacera signed another export contract worth $3 million for the U.S. market. According to Modern Decor (U.S.), with 25 years of import experience, Viglacera’s tiles meet U.S. standards. Following visits to Viglacera factories, Modern Decor pledged a three-year product distribution agreement (2020-2022).

Viglacera’s stand at the 2019 TISE International Exhibition (Photo: Viglacera)

Viglacera's U.S. market entry was significantly aided by the annual TISE exhibition in Las Vegas, one of North America's premier tile and natural stone industry events, attracting numerous manufacturers, distributors, designers, and contractors.

After extensive market analysis and segment-specific positioning, Viglacera emerged as the "sole Vietnamese brand" presenting cutting-edge technology products at TISE 2019. Their exhibits garnered substantial attention due to appealing U.S.-preferred tile sizes and patterns, such as wood-grain and stone-look designs. Moreover, Viglacera tiles boast near-zero water absorption, surpassing other products on the market.

Another advantage for Viglacera was its early entry into the Latin American market. Since 2018, its joint-venture tile and sanitaryware factory in Cuba has facilitated logistics throughout the Caribbean and the Americas.

The U.S. surpassed China to become Vietnam’s largest ceramics and tile export market, accounting for 25.5% market share and approximately $81 million revenue in the first half of 2024, marking a 56% year-on-year increase.

Viglacera’s real estate sector, established in 1998, also achieved significant successes. Owning 15 industrial parks domestically and abroad with a combined area of over 4,000 hectares, Viglacera has attracted investments totaling $18 billion, with foreign investors contributing 70%.

As of Q2/2024, Viglacera’s total assets reached VND 23,641 billion.

According to Mordor Intelligence’s "Vietnam Tile Market Size Analysis – Growth Trends 2024-2029" report, Vietnam currently ranks fifth globally and is among Asia’s top tile producers.

Robust Growth Forecast

Mordor Intelligence highlights tile production as a key Vietnamese industry and a major export sector. Vietnam’s tile market is forecasted to reach $3.91 billion by 2029, with a CAGR of 4.52% during 2024-2029.

Growth drivers include rapid urbanization, rising disposable incomes, and improved product quality. Viglacera’s internationally compliant products are exported to over 40 countries, including demanding markets such as the U.S., UK, and Europe, generating over $50 million annually.

“Stable growth, technological advancements, and foreign investments have positioned Vietnam as a formidable competitor in the global ceramics and tile market,” Mordor Intelligence concludes.

(Source: Minh Nhat - Phap Luat Doi Song)