Vietnam’s construction market forecast to lure more foreign investors
More foreign participation is forecast in Vietnam’s construction market over the coming years, buoyed by the gradual opening up of the Vietnamese economy to foreign investors and the Government’s emphasis on infrastructure development.
The enactment of the Public-Private Partnership (PPP) Law in 2020 signals the Government’s intention to attract more private sector investments in the infrastructure sector. (Photo: luatvietnam.vn)
Hanoi (VNS/VNA) — More foreign participation is forecast in Vietnam’sconstruction market over the coming years, buoyed by the gradual opening up ofthe Vietnamese economy to foreign investors and the Government’s emphasis oninfrastructure development.
The information was included in a recent report by FitchSolutions on the outlook for Vietnam’s construction and infrastructuresector.
According to analysts from the UK-based financial data and research group, morethan half of construction roles are awarded to foreign contractors, reflectingthe openness of Vietnam’s construction market. Foreign participation is mainlyrepresented by the Republic of Korea, Japanese and Chinese engineeringcompanies. Japanese financiers are particularly active in supporting projectsin Vietnam, highlighting their dominance as an important exporter ofinfrastructure.
“When analysing the mix of nationalities of companies operating in Vietnam’sburgeoning construction and infrastructure market, we note that the country hasone of the most diverse competitive landscapes within the Southeast Asiaregion,” the analysts noted.
According to Fitch, opportunities for foreign companies to participate in Vietnam’sconstruction market exist mainly in areas where private or foreigncompanies have competitive advantages. These areas include designing,consulting, building and managing projects and supplying high-value industrialgoods such as rolling stock and wind turbines.
Based on data from Fitch’s proprietary Infrastructure Key Projects Database(KPD), local Vietnamese companies unsurprisingly dominate the construction scene,holding 43 percent of construction roles awarded.
“The enactment of thePublic-Private Partnership (PPP) Law in 2020 signals the Government’s intentionto attract more private sector investment in the infrastructure sector,and we believe foreign players will play an increasingly important role overthe next decade,” Fitch said.
Leading the foreign nationalities in construction roles are RoK and Japanese./.
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The enactment of the Public-Private Partnership (PPP) Law in 2020 signals the Government’s intention to attract more private sector investments in the infrastructure sector. (Photo: luatvietnam.vn) 
