Construction and Building Materials Industry 2023: Seeking Stabilization Amid Global Volatility
At the seminar “Construction and Building Materials Industry 2023: Opportunities, Challenges and Development Orientations” took place on November 8, 2022 at the Gem Center Convention Center organized by Metta Marketing Company, with more than 70 representatives as presidents Board of Directors and senior leaders of leading enterprises discussed the economic and social scenario in 2023.
The global economy is on the brink of recession
The 2022 itinerary is full of the phrases “volatility”, “uncertainty”, “unpredictability” when describing the economic situation. During the period businesses are starting to plan and develop business strategies for 2023 with so many variables, Metta Shared Marketing Services Joint Stock Company opened a special seminar for leaders of construction and building materials businesses to discuss and illumine the picture of 2023.
At the seminar, Ms. Ngo Phi Phung – Founder of Metta Marketing, representative of the Organizing Committee shared about 3 possible scenarios for the world economy in 2023. Accordingly, 99% of the economy will face the risk of a global recession due to tightening monetary policy to control inflation. Forecast data from the International Monetary Fund (IMF) suggests that global Gross Domestic Product (GDP) growth in 2023 will reduce to 2.7%. This recession has been likened to the term “Pasta Bowl Recession” when it goes on for a long time but but leaves little consequence.
Referring to this issue, Mr. Nguyen Truong Hai – General Director of Saint-Gobain Vietnam also shared: “Saint-Gobain remains cautiously optimistic for a good scenario, while always being prepared to adapt and look for opportunities in a challenging context.”
In addition, on the political level, the protracted Russia-Ukraine conflict continues to cause global energy and food crises. Narrowing the scope of analysis, it can be seen that until the war ends, there are still risks and threats to the economic recovery of Southeast Asian countries. The immediate evidence is that the increase in raw material prices affects the production of enterprises, including in Vietnam.
Vietnam remains stable amid world upheaval
Regarding Vietnam’s economy, 2022 is still considered a prosperous year when GDP growth in 2022 Third Quarter reached 13.67%, the highest increase over the same period since 2018, marking a positive change for economic recovery. Therefore, Vietnam can expect a bright future for 2023.
The analysis shows that, amid tensions caused by political conflicts from wars, Southeast Asia has become one of the safe investment destinations, in which, Vietnam is the second most attractive investment market, only after Indonesia. The IMF’s Asia Economic Outlook Report dated October 11, 2022 forecasts Vietnam to lead ASEAN-5 with growth of 7% in 2022 compared to 2.6% in 2021, while Asia’s growth in 2022 is forecast to be 4%.
In addition, the post-Covid green living trend is gradually entering the mindset of Vietnamese consumers. In addition, policies on greening and combating climate change are issued that require construction materials enterprises to improve and adapt to develop. This is both a motivation and a goal that businesses should focus on next year.
Construction and building materials business 2023: “prepare yourself to attack to score”…
Also in the seminar on November 8, 2022, Ms. Ngo Phi Phung – Founder of Metta Marketing presented an overview of the panorama of Vietnam’s construction and building materials industry in the period of 2021 – 2025. The field of civil construction and industrial construction are the two main sectors. According to a report by GlobalData, it is expected that the average annual growth rate of the whole industry is 8% in the period of 2021 – 2025.
Regarding specifically the industrial construction market, Mr. Vo Minh Nhut – General Director of NS BlueScope Vietnam, Guest Speaker of the seminar – shared: “Total FDI for industrial production today accounted for about 60%. In early November, VCCI forecast both FDI and FDI registration into Vietnam from 2023 will increase. Therefore, the economic crisis is only phased, businesses need to be well prepared.”
Mr. Dinh Hong Ky – Chairman of SECOIN, Vice Chairman of many Vietnam construction and building materials associations shared: “The economic crisis has only a short-term impact, which is not the biggest challenge today. More broadly, the biggest challenge is a global one: climate change. From there, each enterprise will give appropriate production and investment orientations.” Following the program, the seminar had a lively discussion between speakers and guests on the direction for construction materials enterprises in the next year. Accordingly, if we consider running the business as a football game, “in addition to defending, we should still maintain an attacking readiness to take advantage of scoring opportunities” (quoted by Mr. Do Huu Nhat Quang – Founder of GREENVIET Green Building Consultancy), or in other words, allocating resources to find new development motivation for the business.
The trend of applying technology to production and construction is also developing thanks to the application of robots, data and smart devices… After the pandemic, the Vietnamese market witnessed a change in purchasing behavior, forcing businesses to adapt and change quickly, especially the trend of multi-channel sales, digital transformation for B2B sales…
Coming to the Seminar, more than 70 guests attending the Senior Board of Directors, leading experts, managers representing leading businesses had a lively discussion within the framework of finding solutions for the development orientation in 2023. The seminar was organized by Metta Shared Marketing Services Joint Stock Company – a brand strategy consultant and execution management unit. The entire content of the seminar as well as discussions between speakers and guests will be rebroadcast live by Metta Marketing at 9:00, Friday November 11, 2022 on http://metta.com.vn website. Readers are invited to take a look.
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