FM Boom in Southeast Asia—Focus on the Vietnamese Market, Forecast to 2023

FM Boom in Southeast Asia—Focus on the Vietnamese Market, Forecast to 2023

A Hotspot for Facilities Management Driven by Economic Growth and Foreign Investments

RELEASE DATE
30-Sep-2019
REGION
Asia Pacific
Research Code: 9AAF-00-54-00-00
SKU: EN01153-AP-MR_23652
$1,500.00
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SKU
EN01153-AP-MR_23652
$1,500.00
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Description

he Vietnamese facilities management (FM) market is expected to record a growth rate of 5.5% in 2019. By 2023, the total market is expected to record a compound annual growth rate (CAGR) of 6.0%, reaching $470.8 million. Rapid growth in Vietnam’s economy is driving building construction in various sectors, such as healthcare, financial, industrial, and residential, thereby boosting the demand for FM services. Moreover, there is growing awareness on the benefits of outsourcing building services for reducing operational cost. Major restraints to growth in the FM market in Vietnam include preference for managing certain building services in-house, cost sensitivity, and lack of knowledge on outsourcing benefits. These factors often defer engagement with third-party providers of FM services.

The market is highly fragmented, with the share of individual participants being not more than 5%. There are no apparent market leaders, as each service provider serves its own clientele. The distinctive requirements and standards sought by end users from different sectors have resulted in a growing preference for sector-focused service providers. End users prefer local service providers that are familiar with the domestic workforce and the local language and culture.

In the Vietnamese FM market, there needs to be a strong focus on key services—cleaning, repair and maintenance, and security. There is also a need for higher R&D investments for enabling greater automation in security services and cost reduction to offer competitive prices. FM companies need to keep up with anticipated trends such as provision of green cleaning and energy management services using environment-friendly chemicals, substantial R&D investment, and partnerships with energy efficiency experts. For example, green cleaning is already an upcoming trend in other countries. In Vietnam, it is still considered as a new trend and adopted in niche segments such as green buildings and private hospitals.

Going forward, the market will move toward domestic hybrid building service providers offering all kinds of services to customers. This can be done by building specialized teams, hiring skilled resources in specific areas of focus, or executing M&As with other FM companies.

The scope of the FM market for this study covers cleaning, security, and repair and maintenance. The end-use sectors covered in this study are commercial, education, healthcare, public sector, and industrial.

Key Issues Addressed

  • What are the key growth drivers and restraints for the FM market in Vietnam?
  • What is the size of the FM market in Vietnam, and how is it growing year on year?
  • Which are the end users and FM service types that are likely to impact the market opportunity moving forward?
  • Who are the leading FM providers, and what are the purchase criteria in this market?
  • What are the emerging opportunities that FM providers in Vietnam can leverage?

Table of Contents

Key Findings

Scope

Market Definitions

Market Definitions (continued)

Key Questions this Study will Answer

Market Drivers

Drivers Explained

Market Restraints

Restraints Explained

Revenue Forecast and Discussion

Percent Revenue Forecast by Service Type

Revenue Forecast by Service Type

Revenue Forecast Discussion by Service Type

Percent Revenue Forecast by End User

Revenue Forecast by End User

Revenue Forecast Discussion by End User

Percent Revenue Breakdown by Service Type and End User

Competitive Landscape

Notable Market Participants

Common Competitive Factors of Top Participants

Purchase Decision Trends

Purchase Decision Trends (continued)

Services—Growth Opportunity 1: Focus on Key Services

Services—Growth Opportunity 2: Service Innovation

Services—Growth Opportunity 3: Invest in IFM

End Users—Growth Opportunity 1: FM Going Green

End Users—Growth Opportunity 2: Pivot to Key End Users

Strategic Imperatives for Success and Growth

Conclusions

Legal Disclaimer

List of Exhibits

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
he Vietnamese facilities management (FM) market is expected to record a growth rate of 5.5% in 2019. By 2023, the total market is expected to record a compound annual growth rate (CAGR) of 6.0%, reaching $470.8 million. Rapid growth in Vietnam’s economy is driving building construction in various sectors, such as healthcare, financial, industrial, and residential, thereby boosting the demand for FM services. Moreover, there is growing awareness on the benefits of outsourcing building services for reducing operational cost. Major restraints to growth in the FM market in Vietnam include preference for managing certain building services in-house, cost sensitivity, and lack of knowledge on outsourcing benefits. These factors often defer engagement with third-party providers of FM services. The market is highly fragmented, with the share of individual participants being not more than 5%. There are no apparent market leaders, as each service provider serves its own clientele. The distinctive requirements and standards sought by end users from different sectors have resulted in a growing preference for sector-focused service providers. End users prefer local service providers that are familiar with the domestic workforce and the local language and culture. In the Vietnamese FM market, there needs to be a strong focus on key services—cleaning, repair and maintenance, and security. There is also a need for higher R&D investments for enabling greater automation in security services and cost reduction to offer competitive prices. FM companies need to keep up with anticipated trends such as provision of green cleaning and energy management services using environment-friendly chemicals, substantial R&D investment, and partnerships with energy efficiency experts. For example, green cleaning is already an upcoming trend in other countries. In Vietnam, it is still considered as a new trend and adopted in niche segments such as green buildings and private hospitals. Going forward, the market will move toward domestic hybrid building service providers offering all kinds of services to customers. This can be done by building specialized teams, hiring skilled resources in specific areas of focus, or executing M&As with other FM companies. The scope of the FM market for this study covers cleaning, security, and repair and maintenance. The end-use sectors covered in this study are commercial, education, healthcare, public sector, and industrial.--BEGIN PROMO--

Key Issues Addressed

  • What are the key growth drivers and restraints for the FM market in Vietnam?
  • What is the size of the FM market in Vietnam, and how is it growing year on year?
  • Which are the end users and FM service types that are likely to impact the market opportunity moving forward?
  • Who are the leading FM providers, and what are the purchase criteria in this market?
  • What are the emerging opportunities that FM providers in Vietnam can leverage?
More Information
No Index No
Podcast No
Author Janice Wung
Industries Environment
WIP Number 9AAF-00-54-00-00
Is Prebook No
GPS Codes 9835-A4,9343-A4