Infrastructure sector in Vietnam - Growth, Trends, and Forecasts (2020 - 2025)

Infrastructure sector in Vietnam - Growth, Trends, and Forecasts (2020 - 2025)

The Infrastructure in Vietnam is estimated to grow at a CAGR of approximately 4% during the forecast period. Vietnam has been one of Asia's fastestgrowing economies over the past decade, with an average GDP growth rate of 6.2% between 2000 and 2017. Recognizing this, the Vietnamese government has made transport infrastructure a priority and aims to raise investment from USD 7bn (2001 – 2008) to USD 120bn (2020). Government plans to develop further infrastructure, with power and toll roads likely to be the main areas for expansion and quality improvements. Other infrastructure, including ports and railways, will also be developed. Infrastructure has been a central factor in Vietnam’s fastpaced economic development. However, economic growth is putting increasing pressure on Vietnam’s infrastructure. Freight volumes are expanding rapidly. Road traffic has increased by an astounding 11% annually and the demand for energy is expected to grow by about 10% per year until 2030.

Key Market Trends

Increase in FDI in Vietnam

According to Foreign Investment Agency (FIA), a total of USD 14.22 billion in FDI has been disbursed for 2019 – a 7.3 % yearonyear increase – and 2,759 new projects with a total commitment of USD 10.97 billion have been approved. A total of 112 countries and territories invested in the country in 2018, with Japan leading the way with USD 8.59 billion – followed by South Korea (USD 7.2 billion) and Singapore (USD 5 billion). The country’s manufacturing and processing sector have traditionally gained the most interest from foreign investors, and the two sectors attracted USD16.58 billion in FDI 2018 – followed by the real estate sector (USD 6.6 billion) and retail sector (USD 3.67 billion).

Demand for road infrastructure

A series of new transport infrastructure projects are now getting underway in Vietnam’s Ho Chi Minh City. In all, 13 key traffic projects are being carried out, having been planned by the Ho Chi Minh City (HCMC) management board for traffic projects, The works are worth a total of USD 150 million. As one of the fastestgrowing economies in ASEAN, Vietnam has a seemingly endless wish list for infrastructure. In 2019, just 20 percent of the country’s national roads are paved, and a recently approved plan to build a 1,372km northsouth highway by 2030 is estimated to cost USD 14bn. The rising population in major cities in recent years has strained and exceeded the capacity of the existing connectivity networks and utility systems. With 50% of Vietnam’s population expected to be living in cities, Hanoi and Ho Chi Minh are building rapid transit systems exceeding USD 22 billion in the hope of reducing private vehicle ownership and improving air quality.

Competitive Landscape

The Infrastructure sector in Vietnam is fragmented, the market is expected to grow during the forecast period due to demand for the infrastructure sector, FDI inflow in the country as well and many other factors are driving the market.

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1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porters Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Market Insights
4.6.1 Current Economic and Construction Market Scenario
4.6.2 Technological Innovations in the industry
4.6.3 Impact of Government Regulations and Initiatives on the Industry
4.6.4 Impact of COVID -19 on the market
5 MARKET SEGMENTATION
5.1 By Infrastructure segment
5.1.1 Social Infrastructure
5.1.1.1 Schools
5.1.1.2 Hospitals
5.1.1.3 Defence
5.1.1.4 Others
5.1.2 Transportation Infrastructure
5.1.2.1 Railways
5.1.2.2 Roadways
5.1.2.3 Airports
5.1.2.4 Waterways
5.1.3 Extraction Infrastructure
5.1.3.1 Power Generation
5.1.3.2 Electricity Transmission & Disribution
5.1.3.3 Water
5.1.3.4 Gas
5.1.3.5 Telecoms
5.1.4 Manufacturing Infrastructure
5.1.4.1 Metal and Ore Production
5.1.4.2 Petroleum Refining
5.1.4.3 Chemical Manufacturing
5.1.4.4 Industrial Parks and clusters
5.1.4.5 Others
6 INFRASTRUCTURE SECTOR IN VIETNAM - INVESTMENT ANALYSIS
7 COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Central power corporation
7.2.2 Coteccons construction joint stock company
7.2.3 Hoa binh construction group joint stock company
7.2.4 Civil engineering construction corporation no1 - jsc
7.2.5 Song da corporation - jsc
7.2.6 Nam long investment corporation
7.2.7 Vietnam expressway corporation
7.2.8 Minh duc concrete and construction company limited
7.2.9 Fecon corporation
7.2.10 Cofico construction
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
9 APPENDIX

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