Vietnam Infrastructure Report

Published 23 January 2015

  • 125 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Vietnam Infrastructure Report

BMI View: Following an estimated performance of 1.8% in 2014, we forecast a modest pick-up to 4.3% real growth for Vietnam's infrastructure industry in 2015. While we note this rate remains well below the potential suggested by the country's strong foreign direct investment and improving business environment it is, nevertheless, reflective of an improving macroeconomic environment.

The major developments in Vietnam's infrastructure sector are:

While the infrastructure sector struggled in 2014, we expect growth to pick up modestly in 2015 as the macroeconomic environment improves. Nevertheless, we note there is a lack of upside in near-term spending from the domestic public and private sectors, which is brought on by the dominance and excessiveness of the country's state-owned enterprises (SOEs). While the existence of these SOEs makes it easier for the government to channel resources directly to certain projects, their structure remains unwieldy and inefficient.

On October 28 2014, an international consortium led by India-based road developer IL&FS Transportation Networks (ITNL) signed a contract to acquire a 70% stake in an expressway project that connects the capital city of Vietnam, Hanoi, with the port city of Hai Phong. The contract was signed with state-owned entity VIDIFI, the owner of the 105km expressway project. Besides ITNL, the international consortium consists of Philippine-based Strategic Alliance Holdings and Hong Kong-based Tung Sing Group. Under the terms of the contract, VIDIFI and the ITNL-led consortium are expected to form a joint-venture (JV) to manage the project over a 30-year period. About 70% of the expressway is completed, with the rest scheduled to be finished by the end of 2015.

The Vietnam Railway Administration has urged the transport ministry to appraise and approve a USD10bn plan to upgrade the North-South railway in the country. According to the plan, the trans-Vietnam railway, from Hanoi railway station to the Hoa Hung railway...

Table of Contents

BMI Industry View
7
SWOT
8
Infrastructure SWOT
8
Industry Forecast
10
Construction And Infrastructure Forecast Scenario
10
Table: Construction And Infrastructure Industry Data (Vietnam 2012-2017)
10
Table: Construction And Infrastructure Industry Data (Vietnam 2018-2023)
11
Conducive Monetary Conditions
15
Improving Economic Environment
16
Renewed Interest From Foreign Investors
17
Potential Not Maximised
18
Transport Infrastructure - Outlook And Overview
21
Table: Transport Infrastructure Industry Data (Vietnam 2012-2017)
21
Table: Transport Infrastructure Industry Data (Vietnam 2018-2023)
22
Table: Competitiveness Of Vietnam's Infrastructure
24
Table: Vietnam Railway Corporation's Main Targets
30
Major Projects Table - Transport
38
Table: Major Projects - Transport
38
Energy And Utilities Infrastructure - Outlook And Overview
50
Table: Energy & Utilities Infrastructure Data (Vietnam 2012-2017)
50
Table: Energy & Utilities Infrastructure Data (Vietnam 2018-2023)
51
Major Projects Table - Energy & Utilities
65
Table: Major Projects - Energy & Utilities
65
Residential/Non-Residential Building - Outlook And Overview
78
Table: Residential & Non-Residential Building Industry Data (Vietnam 2012-2017)
78
Table: Residential & Non-Residential Building Industry Data (Vietnam 2018-2023)
79
Major Projects Table - Residential/Non-Residential Construction & Social Infrastructure
86
Industry Risk Reward Ratings
88
Vietnam - Infrastructure Risk/Reward Ratings
88
Vietnam Risk/Reward Index
88
Rewards
88
Risks
89
Asia Pacific Infrastructure Index
90
Developed Markets: Favoured
92
Giants Of Asia: Rewards Sizeable, Risks Sizeable
94
South East Asia: Environment Deteriorating Slightly
95
Table: Asia Pacific Infrastructure Risk Reward Index
97
Market Overview
98
Competitive Landscape
98
Table: Vietnam EQS Data
98
Company Profile
99
Cavico Corporation
99
Electricity Vietnam Group
102
Global Infrastructure Overview
107
Global Industry Overview
107
Table: Construction Industry Value, Real Terms, % Change
108
Table: BMI's Top 5 Markets
112
Methodology
114
Industry Forecast Methodology
114
Sector-Specific Methodology
115
Risk/Reward Index Methodology
119
Sector-Specific Methodology
120
Table: Infrastructure Risk/Reward Index Indicators
120
Table: Weighting Of Indicators
121

The Vietnam Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Vietnam Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Vietnamese infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Vietnam to test other views - a key input for successful budgetary and planning in the Vietnamese infrastructure market.
  • Target business opportunities and risks in the Vietnamese infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Vietnam.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc