Product Code: 1750-5593
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.
Table of Contents
BMI Industry View
- Table: Infrastructure - Construction Industry Forecasts (Vietnam 2015-2021)
- Table: Infrastructure Risk Reward Index (Vietnam 2016-2016)
- Construction and Infrastructure Forecast - Q3 2016
- Latest Updates
- Table: Construction And Infrastructure Industry Data (Vietnam 2015-2025)
- Transport Infrastructure - Outlook And Overview
- Table: Transport Infrastructure Industry Data (Vietnam 2015-2025)
- Table: Competitiveness Of Vietnam's Infrastructure
- Table: Transport Projects
- Energy And Utilities Infrastructure - Outlook And Overview
- Table: Energy And Utilities Infrastructure Data (Vietnam 2015-2025)
- Table: Key Projects: Energy & Utilities
- Residential/Non-Residential Building - Outlook And Overview
- Table: Residential And Non-Residential Building Industry Data (Vietnam 2015-2025)
- Table: Construction & Social Infrastructure
Industry Risk Reward Ratings
- Vietnam - Infrastructure Risk/Reward Index
- APAC Infrastructure RRI: Affirming A Benign 2016 Outlook
- Table: Asia Risk/Reward Index
- Competitive Landscape
- Table: Vietnam: Key Companies Financial Data
- Cavico Corporation
- Electricity Vietnam Group
- Industry Forecast Methodology
- Sector-Specific Methodology
- Risk/Reward Index Methodology
- Sector-Specific Methodology
- Table: Infrastructure Risk/Reward Index Indicators
- Table: Weighting Of Indicators