Vietnam Infrastructure Report Q4 2014

Business Monitor International
September 17, 2014
133 Pages - SKU: BMI5329161
Countries covered: Vietnam

Vietnam Infrastructure Report Q4 2014

BMI View: While we maintain that the Vietnamese infrastructure sector boasts strong potential owing tothe country's robust economic growth outlook, high levels of foreign direct investment and an improvingbusiness environment, our real growth forecasts for the sector for 2014 and 2015 remain subdued at just1.3% and 4.3% respectively.

The major developments in Vietnam's infrastructure sector are:

Our relatively downbeat forecast for infrastructure sector growth in 2014 results from the fact that thesector's recovery is taking longer than expected. Specifically, we note that there is a lack of upside innear-term spending from the domestic public and private sectors, which is brought on by the dominanceand excessiveness of the country's state-owned enterprises. While the existence of these SOEs makes iteasier for the government to channel resources directly to certain projects, their structure remainsunwieldy and inefficient."



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