Vietnam Facility Management Growth Opportunities

Vietnam Facility Management Growth Opportunities

Innovative Business Models are the Way Forward for Vietnamese FM Advancement

RELEASE DATE
29-Oct-2021
REGION
Asia Pacific
Research Code: PC67-01-00-00-00
SKU: EN01281-AP-MT_25916
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Description

This study covers the Vietnamese FM market, which includes cleaning services, M&E services, and parking management only. The FM market in Vietnam accounted more than $250 million in 2020, after a 2.8% decline due to the COVID-19 pandemic. Nonetheless, market growth will remain favorable until 2026 with increasing FM demand and awareness on outsourced cleaning. The market is expected to grow at a CAGR of more than 5% in the 2020 to 2026 time period to reach nearly $400 million in 2026. Market growth will be driven by heightened awareness on hygiene and sanitation, and the desire to reduce cost of building operations.

The outlook of the market is likely to positively impact leading FM companies in Vietnam. Most end users (building owners) would require more holistic FM services and it is important that market participants are prepared with flexibility in workforce, use of efficient methods or technologies, and competitive pricing.

Cleaning service remains one of the most commonly outsourced building services in Vietnam, and its marginal growth in 2020 is due to sanitization demand in the midst of pandemic. It is the only FM service segment that registered positive growth in 2020.
M&E services segment declined in revenues in 2020. In addition to reduced M&E services and lack of new contracts due to the pandemic, this market segment is also restrained by indirect competition from single service providers of M&E services (independent electricians, plumbers, and HVAC contractors).

In 2020, the parking management segment accounted negative growth as well due to reduced demand for this service. The main driver for this segment is urbanization that leads to new development of buildings. Newer buildings are more likely to require a parking system. Furthermore, the future is expected to witness enforcement of regulation and policies to curb illegal parking, which is currently restraining the growth of parking management segment.

In terms of competition, JLL and CBRE led the market by leveraging their real estate capability in their FM business in Vietnam. However, other participants, such as ADEN Services and Atalian/Unicare are creating stiff competition and their market share may increase over the forecast period. Similarly, other local FM companies are expected to strengthen their market positions as well.

Key growth opportunities in the Vietnamese FM market include smart cleaning for service differentiation, future-ready M&E services for smart building management, and parking management capability for FM service expansion.

Author: Dennis Marcell Victor

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on the Facility Management (FM) Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Facility Management Market Scope of Analysis

Market Segmentation

Market Segmentation (continued)

Market Segmentation (continued)

Gross Domestic Product

Price and Inflation Trends

Foreign Investments

Wage Indicators

Construction

COVID-19 Impact

Key Growth Metrics

Growth Drivers

Growth Restraints

Revenue Forecast

Revenue Forecast Analysis

Revenue Forecast by Service Type

Revenue Forecast Analysis by Service Type

Revenue Forecast Analysis by Service Type (continued)

Percent Revenue by End User, FM Market

Percent Revenue by End User, Cleaning

Percent Revenue by End User, M&E Services

Percent Revenue by End User, Parking Management

Competitive Environment

Competitive Framework

Brief Profile of Market Participants

Brief Profile of Market Participants (continued)

Brief Profile of Market Participants (continued)

Brief Profile of Market Participants (continued)

Growth Opportunity 1—Smart Cleaning for Service Differentiation

Growth Opportunity 1—Smart Cleaning for Service Differentiation (continued)

Growth Opportunity 2—Future-ready M&E Services for Smart Building Management

Growth Opportunity 2—Future-ready M&E Services for Smart Building Management (continued)

Growth Opportunity 3—Parking Management Capability for FM Service Expansion

Growth Opportunity 3—Parking Management Capability for FM Service Expansion (continued)

List of Exhibits

List of Exhibits (continued)

Legal Disclaimer

This study covers the Vietnamese FM market, which includes cleaning services, M&E services, and parking management only. The FM market in Vietnam accounted more than $250 million in 2020, after a 2.8% decline due to the COVID-19 pandemic. Nonetheless, market growth will remain favorable until 2026 with increasing FM demand and awareness on outsourced cleaning. The market is expected to grow at a CAGR of more than 5% in the 2020 to 2026 time period to reach nearly $400 million in 2026. Market growth will be driven by heightened awareness on hygiene and sanitation, and the desire to reduce cost of building operations. The outlook of the market is likely to positively impact leading FM companies in Vietnam. Most end users (building owners) would require more holistic FM services and it is important that market participants are prepared with flexibility in workforce, use of efficient methods or technologies, and competitive pricing. Cleaning service remains one of the most commonly outsourced building services in Vietnam, and its marginal growth in 2020 is due to sanitization demand in the midst of pandemic. It is the only FM service segment that registered positive growth in 2020. M&E services segment declined in revenues in 2020. In addition to reduced M&E services and lack of new contracts due to the pandemic, this market segment is also restrained by indirect competition from single service providers of M&E services (independent electricians, plumbers, and HVAC contractors). In 2020, the parking management segment accounted negative growth as well due to reduced demand for this service. The main driver for this segment is urbanization that leads to new development of buildings. Newer buildings are more likely to require a parking system. Furthermore, the future is expected to witness enforcement of regulation and policies to curb illegal parking, which is currently restraining the growth of parking management segment. In terms of competition, JLL and CBRE led the market by leveraging their real estate capability in their FM business in Vietnam. However, other participants, such as ADEN Services and Atalian/Unicare are creating stiff competition and their market share may increase over the forecast period. Similarly, other local FM companies are expected to strengthen their market positions as well. Key growth opportunities in the Vietnamese FM market include smart cleaning for service differentiation, future-ready M&E services for smart building management, and parking management capability for FM service expansion. Author: Dennis Marcell Victor
More Information
No Index No
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Author Dennis Marcell Victor
Industries Environment
WIP Number PC67-01-00-00-00
Is Prebook No
GPS Codes 9343-A4