Vietnam is currently experiencing a market rebound from a slowdown two years ago. Between 2012 and 2014, the country experienced some macroeconomic instability, whereby inflation soared and the Vietnamese dong dropped, leading to a GDP growth slowdown during that period. With the government’s effort to steer its target
Vietnam is currently experiencing a market rebound from a slowdown two years ago. Between 2012 and 2014, the country experienced some macroeconomic instability, whereby inflation soared and the Vietnamese dong dropped, leading to a GDP growth slowdown during that period. With the government's effort to steer its target from growth to stabilization, that situation has improved. This year, the country's GDP growth is estimated by the World Bank to grow 6.2 percent from 2015.
In terms of security, players are even more upbeat, with exhibitors at Secutech Vietnam this year putting security growth at an average of 15 percent. Growth drivers are manifold but mostly come from two areas: government spending and private investment.
In terms of government spending, the Vietnamese government holds a clear mandate of improving its infrastructure and announced an investment plan of US$300 billion by 2030, according to Research and Markets. Among airport upgrade projects, the Civil Aviation Authority of Vietnam has proposed a plan to build a new terminal at Tan Son Nhat International Airport in Ho Chi Minh City, seeking to increase the airport's capacity by 30 percent to 40 million passengers a year, VnExpress reported. A six-line metro system is also currently being built in Ho Chi Minh City, with the first two lines set to open in the early 2020s, according to Saigoneer.com.
As for private investment, the General Statistics Office of Vietnam reported in the past eight months, 1,619 new FDI projects were licensed, increasing by 32.8 percent year-over-year. The top two sectors were manufacturing and real estate, with investment totaling $10.5 billion and 836 million, respectively.
These factors will combine to increase the demand for security. “Company owners would want to protect their assets and secure a safe workplace for their employees, and building owners would want to provide stable environment and peace of mind for their tenants. For that reason such rise in investments in the country will invariably lead to a massive boost for the security market,” said Terence Ng, General Manager for Vietnam and Cambodia at Bosch Security Systems.