Key Findings

• The industry revenue for soft services is expected to increase at a CAGR of 5.2% during the period 2018-2023E, while the industry revenue for hard services will increase at a CAGR of 8.8% during the same period.
• Higher inflow of FDI across sector, government spending on infrastructure development and increasing demand of commercial office spaces from MNC’s and big corporate are likely to be the key focus areas for integrated facility management (IFM) services.
• Trends such as alternative use of spaces, development of smart cities environmental sustainability, sustainable procurement and adoption of technologies such as IOT and artificial intelligence are expected to shape the delivery of services in future.

Growing demand of Integrated Facility Management (IFM) Services: Vietnam integrated facility management market is at a growing stage and its penetration has been relatively low in the past due to the lack of standardization of contracts,  lack of awareness of the benefits of such services amongst end users and low affordability in the market. However, the growing trend in adopting IFM services can be attributed to greater focus on cost cutting measures and achieving operational efficiency by the end clients. In future, it is anticipated that, IFM will contribute 12.5% share in generating revenues for the facility management industry in Vietnam in 2023E.

Rapid increase in Outsourcing of Public Sector Projects: In future it is anticipated that, outsourcing of public sector projects through PPP and Build operate transfer (BOT) will increase the demand for managing critical environment (crude oil, Gas Pipe lines, electricity grids and others) that requires high skills. Moreover, they carry higher profit margins and require a longer tenure of service.

Disinvestment measures adopted by the Government: Due to inefficient operations of the state owned enterprises, the governments has taken measures to disinvest a large chuck of public sector enterprises over the last 5 years and are going to continue with this course. Privatization of industries will lead to better quality control measures and higher standards of production which will inevitably call for more facility management services.

Increase in Commercial activities: An increase in commercial activities has lead to greater utilization of available space, thereby placing importance on efficiency. This has also lead to the rise of alternate uses of space, co-working spaces and so on.  Commercial sector contributed the highest revenue share of 40.0% to the overall facility management industry in Vietnam in 2018. In-house personnel have contributed above 55% in generating revenues in the overall facility management market in 2018.

Analysts at Ken Research in their latest publication “Vietnam Facility Management Market Outlook to 2023 – By Single, Bundled and Integrated Services; By Soft Services (Housekeeping, Security, Landscaping and Others) and Hard Services (Electromechanical Services, Operations and Maintenance Services, Fire Safety and Security Systems), By End User Sectors (Commercial, Industrial, Hospitality, Residential, Infrastructure and Others)” believed that the facility management market in Vietnam will increase due to greater FDI inflows and increasing partnerships with major domestic players for specific expertise in the (soft and hard) services. The market is expected to register a positive CAGR of 6.0% in terms of revenue during the forecast period 2018-2023E.

Key Segments Covered

By Soft Services and Hard Services

• Soft Services
  • Housekeeping (including Cleaning)
  • Landscaping
  • Security
  • Others (Waste Management, Mail Delivery Services)
• Hard Services
  • Electromechanical Services (including HVAC)
  • Operational and Maintenance Services
  • Fire Safety and Security Systems

By Type of Services

• Single Services
• Bundled Services
• Integrated Facility Services

By End User Sectors

• Commercial sector
• Industrial Sector
• Hospitality Sector
• Residential sector
• Infrastructure and others

Time Period Captured in the Report:

• Historical Period: 2013-2018
• Forecast Period: 2019-2023E

Companies Covered:

• JLL
• CBRE
• RCR Resolve FM Vietnam
• Sodexo
• Aden
• Atalian
• Savills
• Aeon Delight
• PMC
• P. Dussmann Co. Ltd.

Key Topics Covered in the Report

• Introduction on Vietnam Facility Management Market
• Business Acquisition Process in Vietnam Facility Management Market
• Vietnam Facility Management Market Overview and Genesis
• Vietnam Facility Management Market Size by Revenue, 2018
• Vietnam Soft Facility Management Market Segmentation
• Vietnam Hard Facility Management Market Segmentation, 2018
• Trends and Developments in the Facility Management Market
• Issues and Challenges in the Facility Management Market
• Vendor Selection Process
• SWOT Analysis of Vietnam Facility Management Market
• Competitive Landscape in Vietnam Facility Management Market
• Vietnam Facility Management Market Future Outlook and Projections, 2018-2023E

For more information on the market research report, please refer to the below link:

https://www.kenresearch.com/manufacturing-and-construction/real-estate/vietnam-facility-management-market/197078-97.html

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SOURCE Ken Research