Infrastructure Insight: Vietnam

Synopsis

The report provides a detailed look into the infrastructure sector in Vietnam, including analysis of the state of the current infrastructure, the regulatory and financing landscapes, and the major projects in the construction pipeline.

The report covers all key infrastructure sectors: roads, railways, electricity and power, water and sewerage, communication, and airports and ports.

Summary

Vietnam's infrastructure construction industry will continue to expand at a strong pace over the forecast period (2017-2021) reflecting higher investments in infrastructure projects, especially in critical projects in the transport, energy, telecommunication and water sectors.

According to Timetric's Infrastructure Intelligence Center (IIC), the infrastructure construction market's value increased from US$188.4 billion in 2011 to US$326.1 billion in 2016, and is projected to reach US$572.2 billion by 2021, in nominal value terms. 

This is based on the assumption that a number of large-scale projects will proceed as planned, including the North-South Express Railway, Long Thanh International Airport and the Ho Chi Minh City (HCMC) Metro Rail System.

Scope

A concise analysis of the administrative, economic and political context for infrastructure in Vietnam.

An in-depth assessment of the current state of infrastructure in Vietnam, including roads, railways, electricity and power, water and sewerage, communications, airports and ports.

A focus on main political and financial institutions involved in the infrastructure market, as well as the competitive and regulatory environment.
For each infrastructure sector, an explanation of the key drivers of growth in new investment and an analysis of the project pipeline, with a detailed look at the prospects for major projects and the companies that have secured contracts.

Reasons To Buy

• Assess the current state of Vietnam infrastructure, and the main drivers of investment, including the key institutions and financing methods. 

• Investigate forecasts and gain an understanding of key trends in each of the main infrastructure sectors.

• Analyze the main project participants operating in each sector, to better understand the competitive environment. 

• Identify top projects by sector, development stage and start date, to inform your expansion strategy.

Key Highlights

Timetric is currently tracking 208 strategic infrastructure construction projects in Vietnam, at all stages of development from announcement to execution. These projects have a total investment value of US$300.1 billion. 

Electricity and power projects account for the largest share of infrastructure projects in the pipeline, with a total project value of US$135.6 billion; this is followed by railway projects with a pipeline value of US$89.1 billion. The pipeline value for airports and other infrastructure construction projects amounts to US$35.5 billion, and for road infrastructure projects it stands at US$35.4 billion. For water and sewerage projects, the total pipeline value stands at US$6.4 billion.

While significant investments in infrastructure have made progress in the last few decades, more productive infrastructure is required. In the 2016-2017 World Economic Forum's Global Competitiveness Report, Vietnam ranked 85 out of 138 countries surveyed for the overall quality of its infrastructure, ahead of the Philippines (112) but behind Thailand (72) and Indonesia (80).

In April 2016, the prime minister approved the Socio-Economic Development Plan (SEDP) for 2016-2020. The SEDP lays out strategies under which the government expects to achieve an average GDP growth of 6.5-7% per year, and lift GDP per capita to US$3,200-3,500 by 2020. Key strategies focus on private sector development, urban infrastructure integration, industrial restructuring, service sector development and developing the agricultural sector.