Vietnam Infrastructure Report

Providing expert analysis, independent forecasts and competitive intelligence on the Infrastructure industry.

Report includes: BMI Industry View, Industry SWOT Analysis, BMI Industry Forecast, BMI's Infrastructure Risk Reward Index, Market Overview and Company Profiles.

Why you should buy this report

  • Gain independent insight into the outlook for the infrastructure industry through BMI's 10 year forecasts
  • Understand the market through analysis of projects , investment plans and key players
  • Understand the threats to your operations and investments and protect your company against future risks
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Vietnam Infrastructure Report
Product Price
$1,295.00

BMI View : We maintain our positive outlook for Vietnam's construction sector, which will continue to be supported by strong economic growth and regulatory changes. We forecast transport infrastructure to outperform in 2016, followed by the energy and utilities sub-sector. We also maintain our positive outlook on the residential and non-residential construction sector, supported by large FDI inflows and a strong project pipeline, which will register the strongest growth over the long term.

Latest Updates And Structural Trends

  • The government's decision to select investors for 23 large-scale transport infrastructure PPP projects worth VND39.9trn (USD1.83bn) in 2016 poses upside risks to the transport infrastructure sector, which we forecast to grow at 7.1% in 2016.

  • We maintain our positive outlook for the residential and non-residential segments, which we forecast to grow at an annual average of 6.5% between 2016 and 2020. Real estate and manufacturing sectors will continue to be the key drivers of growth in the sector.

  • We forecast Vietnam's energy and utilities sector to grow at 5.9% in 2016, following the transport infrastructure sector. The growth will slow beyond 2016, averaging at 5% between 2016 and 2025.

  • Despite our positive outlook for Vietnam's infrastructure sector, we highlight that fiscal weakness poses major risks to construction growth. Consistent fiscal deficits in Vietnam as a result of a lack of spending prudence could undermine much needed infrastructure development and weigh on economic growth.

Infrastructure - Construction Industry Forecasts (Vietnam 2015-2021)
2015e 2016f 2017f 2018f 2019f 2020f 2021f
e/f = BMI estimate/forecast. Source: Vietnam General Statistics Office, BMI
Construction industry value, VNDbn 215,873.39 232,993.45 259,029.04 287,501.51 318,830.25 353,458.93 391,414.87
Construction Industry Value, Real Growth, % y-o-y 2.06 5.88 6.27 6.09 6.10 6.06 6.04
Construction Industry Value, % of GDP 5.1 5.1 5.0 5.0 5.0 5.0 4.9

Risk/Reward Index

  • Vietnam has achieved a score of 54.3 out of 100 in our Asia Pacific infrastructure Risk/Reward Index. It remains in the lower half of the rankings in 14th position, out of 21 countries. This is largely owing to the high business risks due to corruption and significant potential for delays to project development.

  • That said, the country actually has one of the fastest moving business environments in the region. Rapid expansion has raced ahead of the regulatory environment and after Indonesia the country is an outperformer among emerging South East Asian countries in terms of rewards.

  • Industry Risks represent the largest hurdle for Vietnam at present, as the country continues to score only 40 in this category, below the regional average of 61. This is indicative of structural weaknesses in the infrastructure sector, which in turn pose long-term risks to investors.

Infrastructure Risk Reward Index (Vietnam 2016-2016)
Risk/Reward Index Rewards Industry Rewards Country Rewards Risks Industry Risks Country Risks
Source: BMI
Vietnam 54.3 55.3 52.5 60.4 52.0 40.0 60.0
BMI Industry View
5
Table: Infrastructure - Construction Industry Forecasts (Vietnam 2015-2021)
5
Table: Infrastructure Risk Reward Index (Vietnam)
6
SWOT
7
Industry Forecast
9
Infrastructure & Construction - Real Estate And Manufacturing To Drive Growth - Q2 2016
9
Latest Updates
9
Table: Construction And Infrastructure Industry Data (Vietnam 2015-2025)
10
Transport Infrastructure - Outlook And Overview
17
Table: Transport Infrastructure Industry Data (Vietnam 2015-2025)
17
Table: Competitiveness Of Vietnam's Infrastructure
19
Table: Transport Projects
31
Energy And Utilities Infrastructure - Outlook And Overview
32
Table: Energy And Utilities Infrastructure Data (Vietnam 2015-2025)
32
Table: Key Projects: Energy & Utilities
48
Residential/Non-Residential Building - Outlook And Overview
49
Table: Residential and Non-Residential Building Industry Data (Vietnam 2015-2025)
49
Table: Construction & Social Infrastructure
54
Industry Risk Reward Ratings
55
Vietnam - Infrastructure Risk/Reward Index
55
Rewards
55
Risks
56
APAC Infrastructure RRI: Affirming A Benign 2016 Outlook
58
Table: Asia Risk/Reward Index
65
Market Overview
66
Competitive Landscape
66
Table: Vietnam: Key Companies Financial Data
67
Company Profile
68
Cavico Corporation
68
Electricity Vietnam Group
71
Methodology
75
Industry Forecast Methodology
75
Sector-Specific Methodology
76
Risk/Reward Index Methodology
80
Sector-Specific Methodology
81
Table: Infrastructure Risk/Reward Index Indicators
81
Table: Weighting Of Indicators
82

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.