The Impact of the COVID-19 on the Construction Industry in Vietnam
Keywords:Covid-19, construction industry, performance, impact, developing countries, Vietnam
The COVID-19 pandemic has generated a wide range of socio-economic disruption, which causes devastating in numerous aspects. Our knowledge of the true health of the construction industry under the ravage of COVID-19 outbreak is largely based on very limited data. This study aims to assess the impact of pandemic on the construction industry through an investigation in Vietnam. Data were collected through 129 respondents whose online questionnaire survey completed according to their recent direct or indirect participation in delivering construction projects during the spread. The implications of COVID-19 on the construction industry were examined based on simple percentage analysis and Relative Importance Index approaches. Three principal facets of the construction industry were considered: firms' business activities, project performance, and workforce demand. The findings highlighted the multilevel, multidimensional nature of the epidemic consequences on the construction sector. Notably, the revenue and profitability, in a general sense, have decreased during the COVID-19 period, while most of the production and business costs had remained unchanged. Further, the pandemic was argued to impair construction practitioners' incomes and mental health and sabotage projects' schedule and cost.
Afkhamiaghda, M., & Elwakil, E. (2020). Preliminary modeling of Coronavirus (COVID-19) spread in construction industry. Journal of Emergency Management, 18(7): 9-17.
Al Amri, T., & Marey-PÃ, M. (2020). Impact of Covid-19 on Oman's Construction Industry. Technium Social Sciences Journal, 9(1): 661-670.
Alaghbari, W., Al-Sakkaf, A. A., & Sultan, B. (2019). Factors affecting construction labour productivity in Yemen. International Journal of Construction Management, 19(1): 79-91.
Alenezi, T. A. N. (2020). Covid-19 Causes Of Delays On Construction Projects In Kuwait. In: IJERGS.
Alon, T., Doepke, M., Olmstead-Rumsey, J., & Tertilt, M. (2020). This Time It's Different: The Role of Women's Employment in a Pandemic Recession. Retrieved 23/03/2021 from https://www.nber.org/papers/w27660
Alon, T. M., Doepke, M., Olmstead-Rumsey, J., & Tertilt, M. (2020). The impact of COVID-19 on gender equality. Retrieved 23/03/2021 from https://www.nber.org/papers/w26947
Alshenqeeti, H. (2014). Interviewing as a data collection method: A critical review. English linguistics research, 3(1): 39-45.
Andersen, E. S., Birchall, D., Jessen, S. A., & Money, A. H. (2006). Exploring project success. Baltic journal of management, 1(2): 127-147.
Araya, F. (2020). Modeling the spread of COVID-19 on construction workers: An agent-based approach. Safety science, 133: 105022.
Ataguba, O. A., & Ataguba, J. E. (2020). Social determinants of health: the role of effective communication in the COVID-19 pandemic in developing countries. Global Health Action, 13(1): 1788263.
Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30): 17656-17666.
Belout, A., & Gauvreau, C. (2004). Factors influencing project success: the impact of human resource management. International journal of project management, 22(1): 1-11.
Bowen, P., Dorrington, R., Distiller, G., Lake, H., & Besesar, S. (2008). HIV/AIDS in the South African construction industry: an empirical study. Construction Management and Economics, 26(8): 827-839.
Brainerd, E., & Siegler, M. V. (2002). The economic effects of the 1918 influenza epidemic. Retrieved 23/03/2021 from https://users.nber.org/~confer/2002/si2002/brainerd.pdf
Bsisu, K. A.-D. (2020). The impact of COVID-19 pandemic on Jordanian civil engineers and construction industry. International Journal of Engineering Research and Technology, 13(5): 828-830.
Burkle, F. M. (2020). Declining public health protections within autocratic regimes: impact on global public health security, infectious disease outbreaks, epidemics, and pandemics. Prehospital and disaster medicine, 35(3): 237-246.
Can, L. V. (2020). Update the impact of the COVID-19 epidemic on Vietnam's economic sectors. Vietnam Financial and monetary magazine. Retrieved 22/03/2021 from https://thitruongtaichinhtiente.vn/cap-nhat-tac-dong-cua-dai-dich-covid-19-doi-voi-cac-nganh-kinh-te-viet-nam-28398.html
Daniel, S. J. (2020). Education and the COVID-19 pandemic. Prospects, 1-6.
Dinh, H. H. (2020). Risks and issues: reactions of Vietnam and the experience to the world in the first wave of coronavirus pandemic. Asian Education and Development Studies, 10(2): 239-249. doi:10.1108/AEDS-07-2020-0165
Dinh, P. L., & Ho, T. T. (2020). How a collectivistic society won the first battle against COVID-19: Vietnam and their “weapons”. Inter-Asia Cultural Studies, 21(4): 506-520.
Dixon, S., McDonald, S., & Roberts, J. (2002). The impact of HIV and AIDS on Africa's economic development. Bmj, 324(7331): 232-234.
Durdyev, S., Mohamed, S., Lay, M. L., & Ismail, S. (2017). Key factors affecting construction safety performance in developing countries: Evidence from Cambodia. Construction Economics and Building, 17(4): 48.
El-Gohary, K. M., & Aziz, R. F. (2014). Factors influencing construction labor productivity in Egypt. Journal of Management in Engineering, 30(1): 1-9.
Flynn, L., Kaitano, A.-E., & Bery, R. (2012). Emerging pandemic threats and the oil and gas industry. Paper presented at the International Conference on Health, Safety and Environment in Oil and Gas Exploration and Production.
Gallant, J., Kroft, K., Lange, F., & Notowidigdo, M. J. (2020). Temporary Unemployment and Labor Market Dynamics During the COVID-19 Recession. Retrieved 22/03/2021 from https://www.nber.org/papers/w27924
Gamil, Y., & Alhagar, A. (2020). The Impact of Pandemic Crisis on the Survival of Construction Industry: A Case of COVID-19. Mediterranean Journal of Social Sciences, 11(4): 122-122.
Gerard, F., Imbert, C., & Orkin, K. (2020). Social protection response to the COVID-19 crisis: options for developing countries. Oxford Review of Economic Policy, 36(Supplement_1): S281-S296.
Gill, P., Stewart, K., Treasure, E., & Chadwick, B. (2008). Methods of data collection in qualitative research: interviews and focus groups. British dental journal, 204(6): 291-295.
Gruber, J., Prinstein, M. J., Clark, L. A., Rottenberg, J., Abramowitz, J. S., Albano, A. M., Davila, J. (2020). Mental health and clinical psychological science in the time of COVID-19: Challenges, opportunities, and a call to action. American Psychologist, 76(3): 409–426. doi:10.1037/amp0000707
Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2020). Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages? Retrieved 22/03/2021 from https://www.nber.org/papers/w26918
Gunduz, M., & Abdi, E. A. (2020). Motivational Factors and Challenges of Cooperative Partnerships between Contractors in the Construction Industry. Journal of Management in Engineering, 36(4): 04020018.
Hadi, A. (2011). Construction employment peaks before the recession and falls sharply throughout it. Monthly Labor Review, 134(4): 24-27.
Hai, D. T., & Van Tam, N. (2019). Application of the Regression Model for Evaluating Factors Affecting Construction Workers’ Labor Productivity in Vietnam. The Open Construction & Building Technology Journal, 13(1): 353-362.
Hansen, S. (2020). Does the COVID-19 Outbreak Constitute a Force Majeure Event? A Pandemic Impact on Construction Contracts. Journal of the Civil Engineering Forum, 6(1): 201-214.
Harinarain, N., & Haupt, T. C. (2014). Drivers for the effective management of HIV and AIDS in the South African construction industry—a Delphi study. African Journal of AIDS Research, 13(3): 291-303.
Hiyassat, M. A., Hiyari, M. A., & Sweis, G. J. (2016). Factors affecting construction labour productivity: a case study of Jordan. International Journal of Construction Management, 16(2): 138-149.
Hogg, R. V., Tanis, E. A., & Zimmerman, D. L. (2010). Probability and statistical inference: Pearson/Prentice Hall Upper Saddle River, NJ, USA:.
Jarkas, A. M. (2015). Factors influencing labour productivity in Bahrain's construction industry. International Journal of Construction Management, 15(1): 94-108.
Jarkas, A. M., Kadri, C. Y., & Younes, J. H. (2012). A survey of factors influencing the productivity of construction operatives in the state of Qatar. International Journal of Construction Management, 12(3): 1-23.
Jim Toole, F., & CERA, M. (2010). Potential Impact of Pandemic Influenza On the US Health Insurance Industry.
Karlsson, M., Nilsson, T., & Pichler, S. (2014). The impact of the 1918 Spanish flu epidemic on economic performance in Sweden: An investigation into the consequences of an extraordinary mortality shock. Journal of health economics, 36: 1-19.
Kissi, E., Agyekum, K., Adjei-Kumi, T., Caleb, D., & Micheal, E. D. (2020). Exploring the influence of religious elements on performance factors in developing countries: a case of the Ghanaian construction industry. International Journal of Productivity and Performance Management, ahead-of-print(ahead-of-print). doi:10.1108/IJPPM-11-2019-0546
Kurmann, A., Lale, E., & Ta, L. (2020). The impact of covid-19 on us employment and hours: Real-time estimates with homebase data. Retrieved 11/03/2021 from https://www.lebow.drexel.edu/sites/default/files/1588687497-hbdraft0504.pdf
Le, H. T., Mai, H. T., Pham, H. Q., Nguyen, C. T., Vu, G. T., Phung, D. T., Ho, C. S. (2020). Feasibility of intersectoral collaboration in epidemic preparedness and response at grassroots levels in the threat of COVID-19 pandemic in Vietnam. Frontiers in Public Health, 8: 648.
Loayza, N. V., & Pennings, S. (2020). Macroeconomic policy in the time of COVID-19: A primer for developing countries. Retrieved 11/03/2021 from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3586636
Lum, L. H. W., & Tambyah, P. A. (2020). Outbreak of COVID-19–an urgent need for good science to silence our fears? Singapore medical journal, 61(2): 55.
Luo, H., Liu, J., Li, C., Chen, K., & Zhang, M. (2020). Ultra-rapid delivery of specialty field hospitals to combat COVID-19: Lessons learned from the Leishenshan Hospital project in Wuhan. Automation in Construction, 119: 103345.
MacLean, L. M., Meyer, M., & Estable, A. (2004). Improving accuracy of transcripts in qualitative research. Qualitative health research, 14(1): 113-123.
Maldin, B., Inglesby, T. V., Nuzzo, J. B., Lien, O., Gronvall, G. K., Toner, E., & O'Toole, T. (2005). Bulls, bears, and birds: preparing the financial industry for an avian influenza pandemic. Biosecurity and bioterrorism: biodefense strategy, practice, and science, 3(4): 363-367.
Matangi, C. N. (2006). Skills under threat: the case of HIV/AIDS in the mining industry in Zimbabwe. Journal of International Development, 18(5): 599-628.
McGrail, M. R., Rickard, C. M., & Jones, R. (2006). Publish or perish: a systematic review of interventions to increase academic publication rates. Higher Education Research & Development, 25(1): 19-35.
McTague, B., & Jergeas, G. (2002). Productivity improvements on Alberta major construction projects: Phase I-Back to basics. Alberta, Canada: Alberta Economic Development.
Megahed, N. A., & Ghoneim, E. M. (2020). Antivirus-built environment: Lessons learned from Covid-19 pandemic. Sustainable Cities and Society, 61: 102350.
Meintjes, I., Bowen, P., & Root, D. (2007). HIV/AIDS in the South African construction industry: understanding the HIV/AIDS discourse for a sector‐specific response. Construction Management and Economics, 25(3): 255-266.
Nguyen, Q. T., Van Tam, N., Dinh, T. H., & Quy, N. L. D. (2020). Critical factors affecting labor productivity within construction project implementation: a project manager's perspective. Entrepreneurship and Sustainability Issues, 8(2): 751.
Obayelu, A. (2007). Socio-economic analysis of the impacts of avian influenza epidemic on households poultry consumption and poultry industry in Nigeria: empirical investigation of Kwara State. Livestock Research for Rural Development, 19(1): 4.
Ofori, G. (2018). Developing the construction industries in developing countries to enhance performance: the case of Ethiopia. Paper presented at the Seventh Ethiopian Construction Technology and Management Professionals Association (ECoTMPA) International Workshop on Recent Trends in Construction Industry.
Ogunnusi, M., Hamma-Adama, M., Salman, H., & Kouider, T. (2020). COVID-19 pandemic: the effects and prospects in the construction industry. International journal of real estate studies, 14(Special Issue 2): 120-128.
Otu, A., Charles, C. H., & Yaya, S. (2020). Mental health and psychosocial well-being during the COVID-19 pandemic: The invisible elephant in the room. International journal of mental health systems, 14: 1-5.
Page, S., & Yeoman, I. (2007). How VisitScotland prepared for a flu pandemic. Journal of Business Continuity & Emergency Planning, 1(2): 167-182.
Page, S., Yeoman, I., Munro, C., Connell, J., & Walker, L. (2006). A case study of best practice—Visit Scotland's prepared response to an influenza pandemic. Tourism Management, 27(3): 361-393.
Patterson, B. (1993). Crises impact on reputation management. The Public Relations Journal, 49(11): 48.
Phimister, I. R. (1973). The" Spanish” Influenza Pandemic Of 1918 And Its Impact On The Southern Rhodesian Mining Industry. Central African Journal of Medicine, 19(7): 8.
PricewaterhouseCoopers. (2020). COVID-19 Impact Assessment. Retrieved 10/03/2021 from https://www.pwc.com/vn/en/publications/vietnam-publications/economy-covid19.html
Raithel, S., Wilczynski, P., Schloderer, M. P., & Schwaiger, M. (2010). The value‐relevance of corporate reputation during the financial crisis. Journal of Product & Brand Management, 19(6): 389-400.
Rassy, D., & Smith, R. D. (2013). The economic impact of H1N1 on Mexico's tourist and pork sectors. Health economics, 22(7): 824-834.
Sfakianaki, E., Iliadis, T., & Zafeiris, E. (2015). Crisis management under an economic recession in construction: the Greek case. International Journal of Management and Decision Making, 14(4): 373-389.
Šontaitė-Petkevičienė, M. (2014). Crisis management to avoid damage for corporate reputation: the case of retail chain crisis in the Baltic countries. Procedia-Social and Behavioral Sciences, 156: 452-457.
Tansey, P., & Spillane, J. P. (2014). Government influence on the construction industry during the economic recession 2007–2013.
The World Bank Group. (2020). Global Economic Prospects. Retrieved 11/11/2020 from https://openknowledge.worldbank.org/handle/10986/33748
The World Health Organization, W. (2020). Coronavirus disease (COVID-19) pandemic. Retrieved 19/12/2020 from https://www.who.int/emergencies/diseases/novel-coronavirus-2019
Torales, J., O’Higgins, M., Castaldelli-Maia, J. M., & Ventriglio, A. (2020). The outbreak of COVID-19 coronavirus and its impact on global mental health. International Journal of Social Psychiatry, 0020764020915212.
Truelove, S., Abrahim, O., Altare, C., Lauer, S. A., Grantz, K. H., Azman, A. S., & Spiegel, P. (2020). The potential impact of COVID-19 in refugee camps in Bangladesh and beyond: A modeling study. PLoS medicine, 17(6): e1003144.
Välikangas, L., & Lewin, A. Y. (2020). The lingering new normal. Management and Organization Review, 16(3): 467-472.
Van Tam, N., Huong, N. L., & Ngoc, N. B. (2018). Factors affecting labour productivity of construction worker on construction site: A case of Hanoi. Journal of Science and Technology in Civil Engineering (STCE)-NUCE, 12(5): 127-138. doi:https://doi.org/10.31814/stce.nuce2018-12(5)-13
Walker, P., Whittaker, C., Watson, O., Baguelin, M., Ainslie, K., Bhatia, S., Cattarino, L. (2020). The impact of COVID-19 and strategies for mitigation and suppression in low- and middle-income countries. Science, 369(6502): 413-422. doi:10.1126/science.abc0035
Xiong, J., Lipsitz, O., Nasri, F., Lui, L. M., Gill, H., Phan, L. Majeed, A. (2020). Impact of COVID-19 pandemic on mental health in the general population: A systematic review. Journal of affective disorders.
Yoo, S., & Kim, J. (2015). The dynamic relationship between growth and profitability under long-term recession: The case of Korean construction companies. Sustainability, 7(12): 15982-15998.
Zengeni, D. M., & Zengeni, N. (2012). Impact of HIV/AIDS to the tourism sector human resources: Case of selected hotels in Harare. International Journal of Development and sustainability, 1(3).
How to Cite
Copyright (c) 2021 International Journal of Built Environment and Sustainability
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright of articles that appear in International Journal of Built Environment and Sustainability belongs exclusively to Penerbit Universiti Teknologi Malaysia (Penerbit UTM Press). This copyright covers the rights to reproduce the article, including reprints, electronic reproductions or any other reproductions of similar nature.
Authors who publish with this journal agree to the following terms:
- This Journal applies Creative Commons Licenses of CC-BY-NC-SA
- Authors retain copyright and grant the journal right of publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).