The Vietnam market is "waking up" from a down time in security projects. This coincides with the country's economic growth — Vietnam's average GDP annual growth rate increased by 6. 7 percent from 2000 to 2017, while the GDP rate rose by 7.5 percent in the third quarter of 2017 alone.
The Vietnam market is "waking up" from a down time in security projects. This coincides with the country's economic growth over the past years - Vietnam's average GDP annual growth rate increased by 6. 7 percent from 2000 to 2017, while the GDP rate rose by 7.5 percent in the third quarter of 2017 alone.
This growth is mainly supported by thriving sectors such as industry, manufacturing and construction from both public and private demand. Foreign direct investment (FDI) is a strong influential factor in the market, with the country receiving an estimated US$ 12.5 billion FDI in the first nine months of 2017.
“We see a lot of confidence in the market from foreign investors and this had a catalyst effect on all sectors,” said Terence Ng, GM for Security Systems in Bosch Vietnam. “One of the key drivers for FDI in the market is manufacturing, especially from Korea, Japan and Singapore. Korean conglomerates like Samsung and LG are here in consumer electronics; the Japanese invest in infrastructure projects and Singaporean investors are investing in industrial parks. These are large opportunities that have entered the market starting from 2015 till today.”
The government has laid down key strategies in its Socio-Economic Development Plan (SEDP) for 2016-2020 to increase GDP per capita to $3,200 -3,500 by 2020. This includes promotion of infrastructure development and enacting laws and policies in favor of investments from the private sectors, helping to generate excellent business opportunities for security and fire safety suppliers.
"We forecast a 15 percent market growth in 2017 and 20 to 25 percent in 2018. The key market drivers are growing demand for public security, city surveillance and traffic enforcement. Commercial and retail verticals will continue to have high volumes in the low-end market. However, there is a chance that government investment in public security may see a lower rate," said Jinseok Yu, Head of Hanwha Techwin Singapore.
"Although CVI is still popular in Vietnam, we see an increasing demand in basic smart applications such as trespassing detection and people counting or more advanced requirements, surveillance solutions integrated with the POS system. While price is still a decisive factor in the Vietnamese market, IP systems with basic smart solutions and functions are getting popular in the last couple years. This year, we see a growing demand on applying smart home and smart building applications — not only for surveillance but also for alarm systems — in retail and offices. Many cases from retail and office directly requires the deployment of Wi-Fi in their surveillance systems, instead of coaxial,” said James Cui, Indochina Regional Sales Manager for Dahua Technology.
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