Sika is pushing ahead with the significant expansion of its plant in Bac Ninh in northern Vietnam, underscoring its commitment to dynamic growth in the country’s booming construction market. A state-of-the-art facility for mortar production has come on stream alongside the existing production of concrete admixtures. This most recent investment enables Sika to extend its portfolio of locally manufactured products in the north of the country, and thus reinforce the company’s cost structure and competitiveness.
More stringent building regulations in Vietnam require the use of ready-mixed mortar, which is one of Sika’s strongest product lines. As a result ready-mixed mortar is gaining a market share, unlike mortar products that are mixed on the building site. In addition to more stringent regulatory requirements in the construction sector, Vietnam is experiencing a massive construction boom, where rising education and prosperity levels fuel demand for high-quality, high-performance building materials.
Continuous strong momentum in construction industry
Vietnam’s construction sector is expected to grow by 9.6 % this year, with annual growth then averaging 7.2 % through to 2026. This is being driven by several factors: upcoming infrastructure projects, rapid industrialization, continued urbanization, and a growing tourism sector. A partial relaxation of restrictions on property ownership is also making the construction sector attractive to foreign investors.