The global construction industry is undergoing a fundamental paradigm shift, moving away from conventional cast-in-place methods that heavily depend on site-specific conditions, toward the widespread adoption of prefabrication technologies. This approach emphasizes the industrial production of structural components or modules within controlled factory environments, followed by efficient transportation and rapid on-site assembly.

The primary objectives of this transition are to accelerate construction schedules, reduce costs, enhance product quality, improve occupational safety, and mitigate the influence of external factors such as weather conditions, while simultaneously addressing the shortage of skilled labor.

To read the article in Vietnamese, please click here to view the August 2025 eMagazine of the Vietnam Ministry of Construction.

1. Demystifying Prefabrication Technology

Prefabrication technology is a construction method developed to optimize the production and assembly of building components. At present, two predominant forms of prefabrication technology are widely applied: 2D-Precast and Prefabricated Prefinished Volumetric Construction (PPVC).

2-D Precast (precast reinforced concrete components) refers to the method in which reinforced concrete elements are manufactured in a controlled factory environment and subsequently transported to the construction site for assembly. This method has been applied by the Housing and Development Board of Singapore (HDB) since the 1980s and accounts for up to 70% of the structure of a typical HDB building.

PPVC (Prefabricated Prefinished Volumetric Construction) represents a more advanced form of modular prefabrication, in which entire volumetric modules, comprising walls, floors, ceilings and interior finishes such as painting, tiling and fixtures are pre-cast and fully completed within a factory environment. These modules are then transported to the construction site and assembled in place, thereby maximizing off-site work and significantly reducing construction time.

The development of prefabrication technologies, including 2D-Precast and PPVC, represents not merely a technical innovation but also a global paradigm shift in the construction industry. This transition is oriented toward a higher degree of industrialization and automation, aimed at addressing rising construction costs, shortages of skilled labor, and the increasing demand for higher-quality built assets. The industry is undergoing a profound transformation, from reliance on manual labor and on-site activities to an industrialized, off-site production model. This trend is driven by economic factors (cost efficiency), social factors (labor shortages and safety) and environmental imperatives (waste reduction, sustainability) factors.

2. Vietnam’s Journey: From Past to Present

Large-Panel Prefabrication Technology was first researched and applied in Vietnam in the late 1960s and experienced significant development during the 1970s. This technology was deployed in the construction of large-scale residential complexes in Hanoi, such as Giang Vo, Thanh Cong, Kim Lien, Thanh Xuan and Nghia Do, among others. However, this period also revealed many shortcomings and profound lessons. The excessive focus on speed and scale, along with the lack of a comprehensive quality management system and effective maintenance, led to serious consequences for quality and public concern about assembly works.

The return of prefabricated technology in the 2000s, especially through the application of precast prestressed concrete, marked a different and more mature approach compared to the 1970s. Prefabricated technology was transferred from countries with developed construction industries (France, Belgium), accompanied by standardized quality control processes (ISO 9001). The success of the 17T, 18T, 25T and 34T projects in Trung Hoa - Nhan Chinh Urban Area (Hanoi) is proof that when deployed scientifically, methodically and with proper investment, prefabricated technology really brings outstanding efficiency.

3. Advanced Development and Application in Singapore (HDB)

Singapore, through the Housing & Development Board (HDB), has established a well-structured, comprehensive, and forward-looking strategy for the development of prefabrication technologies. The adoption of precast technology began in the 1980s, with HDB’s primary objective being to enhance construction productivity - achieving a 12.3% improvement in 2016 compared to 2010, and setting a target of 25% by 2020. This initiative was also aimed at reducing dependency on on-site labor.

By 2017, approximately 70% of the structural components of a typical HDB building were constructed using prefabricated methods. HDB has been a pioneer in implementing advanced technologies such as Prefabricated Bathroom Units (PBU) and Prefabricated Prefinished Volumetric Construction (PPVC) in its public housing projects. Entire functional spaces within apartments, such as bedrooms, living rooms, household shelters and kitchens were pre-installed at the factory with floor and wall finishes, window frames, and a primer coat of paint before being transported to site for assembly.

According to the HDB Annual Reports up to 2022, the Modular construction process showing a prefabricated unit lifted by crane alongside the completed high-rise residential building adoption of PVC/PPVC modular construction technologies in HDB housing projects has delivered significant improvements in efficiency, safety and sustainability. Specifically, on-site manpower requirements were reduced by 30%–37%, while project construction timelines were accelerated by 50%–70%. Workplace accident risks were lowered by 85%, highlighting the substantial safety benefits of off-site prefabrication. Furthermore, total carbon emissions can be reduced by 25%–40% compared to conventional construction methods, depending on the proportion of modular application and the scale of the project.

4. The Development Potential of Modular Prefabrication Technology in Vietnam

With the rapid pace of urbanization, the growing demand for affordable housing (particularly social housing) and the government’s policy of industrializing and modernizing the construction sector, as reflected in Decision No. 2161/QD-TTg on the National Housing Development Strategy for the period 2021–2030 with a vision to 2045, prefabrication technology holds significant development potential in Vietnam.

The Prime Minister’s Decision on the National Housing Development Strategy has emphasized the importance of diversifying housing supply and accelerating the development of the social housing segment. In this context, modular prefabricated construction is emerging as a key and effective solution. Given the characteristics of social housing projects, large numbers of standardized apartments with highly repetitive layouts, the adoption of this mass-construction method can optimize both schedule and cost, thereby contributing to the realization of the strategy’s objectives.

However, to translate this potential into reality, Vietnam requires a comprehensive and well-coordinated approach. This roadmap will necessitate alignment across multiple dimensions:

• On mindset and design: A fundamental shift in thinking is required, emphasizing creativity in architectural and structural design in order to align with and fully leverage the advantages of prefabricated construction technology.
• On technology and production: Promote technological innovation while encouraging investment in the modernization of infrastructure and production lines at pioneering enterprises with proven experience, such as Xuân Mai, Phan Vu and Thu Duc.
• On policy: Establish a robust legal framework and supportive policies that create favorable conditions for enterprises and investors to actively engage in this sector.
• On quality management: Place strong emphasis on enhancing capacity in supervision, quality assurance, and maintenance procedures throughout the entire project life cycle.

The successful implementation of the aforementioned measures would not only address the pressing challenges of housing provision, particularly in the affordable and social housing segments, but also constitute a critical milestone in the modernization of the Vietnamese construction sector. This trajectory underscores a transformative shift toward an industry that is more efficient, sustainable, and resilient, thereby equipping Vietnam to effectively respond to the multifaceted developmental challenges of the future.

Written by MSc. Eng. Ha Anh Minh Director of P&T Consultants (Vietnam) Ltd.

References

1. “Using large-panel precast concrete in housing construction: Scientific research is needed”, Ngoc Ha - Construction Newspaper, June 13, 2013.
2. “Prefabricated houses - Technology of a not-so-distant time”, Nguyen Thi Phuong Thuy - Vietnam Scientists Heritage Center, October 27, 2020.
3. “HDB Pilots Advanced Construction Technologies to Design and Build Flats in Further Push to Raise Construction Productivity”, HDB News & Publications, 11 Oct 2022.
4. Research report of the Research Office of the HKSAR Legislative Council Secretariat (ISSH07/18-19), Hong Kong.
5. P&T E-Magazine published in August 2021.
6. Design project archive, P&T Design Consulting Co., Ltd. (Vietnam).