This Frost & Sullivan research service titled Strategic Analysis of the Industrial Air Pollution Control Equipment Market in Vietnam provides an overview of the market along with a complete analysis of drivers, restraints, and market trends that are influencing the revenues of this market.
Market Overview
Investments in Coal-based Thermal Power Plants trigger Growth in the Industrial Air Pollution Control Equipment Market in Vietnam
Air pollution is a matter of serious concern in Vietnam with the industrial sector contributing largely to the negative changes in air quality. The industrial air pollution control equipment (APCE) markets in Vietnam are expected to witness a boom between 2010 and 2014, following the commissioning of several coal-fired power plants. Investments in coal-based thermal power plants will be the major contributors to revenue growth and new opportunities will stem from other pollution control systems such as de-nitrification, oxidation systems, and volatile organic compound (VOC) abatement systems. The industrial APCE equipment markets in Vietnam are poised for consistent growth owing to the development of major industries such as power plants, cement, pulp and paper as well as steel and mining.
As such, the electrostatic precipitation and flue gas desulphurization markets will offer the most potential for the future, followed closely by bag filters, and scrubbers. New regulations and progressively stringent implementation will also ensure strong growth momentum for the market. The major sources of air pollution include power plants, cement mills, fertilizer plants, steel mills, and chemical plants. “In Hanoi, the SO2 emitted from industrial production accounted for 99.9 percent of the total emissions, historically, while transportation and municipal activities result in less than 1 percent of the total SO2 emissions,” notes the analyst of this research service. “Total SO2 emissions increased by 11.6 percent in 2003 over 1996 and are expected to increase by 33.4 percent in 2010 over 2003 levels.”
Lack of Awareness on the Importance of APCE Restrains Market Progression
Vietnam is one of the fastest growing economies in the Asia Pacific region and the country has maintained an impressive growth rate since 2000, buffered by growth in exports, increase in consumption spending, and strong investments. Vietnam is undergoing the process of transformation from an inward-looking planned economy to one that is globalized and market-based. Being predominantly an agricultural society, industrialization, and environmental concerns are relatively recent phenomena in Vietnam. Considering the scenario, a lack of awareness of the importance of APCE is reining in market development. In addition, budgetary constraints faced by the government have also posed roadblocks for the market. Paucity of funds and reduced government spending on infrastructure are impacting cement plants, consequently restraining market growth for APCE.
The market is moderately price sensitive and rising prices could severely affect revenues, while fall in production is unlikely to boost consumption by any significant measure. Regardless, price is the most important parameter to be considered for the purchase decision. “Increasing price competition and shrinking revenues have led to a shakeout in the industry,” says the analyst. “Hence, competitors that manage their cost effectively are likely to emerge as winners.” Companies in this space must adopt well-developed strategies in terms of positioning and branding to gain competitive mileage. For foreign participants, local presence will be critical for establishing sales channels, government links, contacts, providing faster and more efficient service, to monitor market, trends, and overcome local issues such as language.
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