Vietnam Infrastructure Report Q1 2015

Business Monitor International
November 5, 2014
121 Pages - SKU: BMI5372112
Countries covered: Vietnam

Vietnam Infrastructure Report Q1 2015

BMI View: While we have upgraded the real growth forecast for Vietnam's infrastructure industry to 1.8%in 2014 (from 1.3% previously), we note that this rate remains well below the potential suggested by thecountry's strong foreign direct investment and improving business environment. For 2015, we continue toexpect a pick-up to 4.3%.

The major developments in Vietnam's infrastructure sector are:

Our relatively downbeat forecast for infrastructure sector growth in 2014 and 2015 results from the factthat the sector's recovery is taking longer than expected. Specifically, we note that there is a lack ofupside in near-term spending from the domestic public and private sectors, which is brought on by thedominance and excessiveness of the country's state-owned enterprises (SOEs). While the existence ofthese SOEs makes it easier for the government to channel resources directly to certain projects, theirstructure remains unwieldy and inefficient.



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