Vietnam is back on track to become a thriving market with a boost in foreign direct investment (FDI), as the country’s economy picks up from a dip during last year’s anti-China protests .FDI in the first month of 2015 reached a total of US$663.4 million, which is a 67.1 percent increase over the same period last year.
Vietnam is back on track to become a thriving market with a boost in foreign direct investment (FDI),
as the country's economy picks up from a dip during last year's anti-China protests .FDI in the first month of 2015 reached a total of US$663.4 million, which is a 67.1 percent increase over the same period last year.
During 2010 to 2014, the average GDP growth was 5.8 percent. However, after a series of riots in southern and central Vietnam last year, the economy fell into a temporary rut mainly due to a drop in Chinese investments and delays in existing projects.
But the economy has recovered since then, and analysts expect to see further strong growth this year. GDP expanded 6.1 percent in the first half of 2015, compared to 5.3 percent in the previous year. The general improvement in the economy has paved way for more opportunities for various industries including the security sector.
Infrastructure Projects Boom in Vietnam
In an attempt to ease the flow of investment and improve sentiments, the government has also committed to creating a fair and attractive business environment, kicking the year off with several infrastructure and building projects.
Optimistic Forecast for Security
As infrastructure projects begin to roll out thanks to the growing economy, the security industry is among the major sectors that stand to benefit from it.. In 2014, the safety and security equipment market in Vietnam was worth $143 million, a $10 million increase compared to 2012, according to the United States of America Department of Commerce. The numbers are expected to continue to grow as development of foreign-invested construction and property projects expand.
Earlier this year, Bosch Security Systems' surveillance products were installed in the Lotte Center in Hanoi, which is one of the tallest buildings in Vietnam at 65 floors. Indoor and outdoor IP PTZ dome cameras and IP dome cameras were installed throughout the building to monitor activities in the public, office, and residential areas to help deter and prevent crime. Together with Ho Chi Minh City's plan to replace 29 dilapidated or ageing apartment buildings with new ones by 2020, the building sector is expected to boom in the next few years.
Also, since last year's riot resulted in damages to numerous factories in industrial parks, security demand in this sector has grown exponentially, such as real-time and scalable monitoring, attendance monitoring systems, perimeter security, access control intercom, biometric systems, product line quality control surveillance monitoring, and vandal-proof surveillance.
Overall, the year is optimistic for Vietnam, as the booming foreign investments fuel project developments, which reflect greatly on Vietnam's recovery. The security industry to also reaping the benefits on the growing economy, with increasing opportunities in infrastructure and industrial park projects.