VIETNAM IN BRIEF
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With an area of around 330,000 square kilometers, Vietnam is bordered by China to the
north and Cambodia and Laos to the west. It has a population of around 100 million
(compared with 95.54 million in 2017). Vietnam's labor costs are relatively low. Exchange rate
is relatively stable and urbanization is developing rapidly. At present, Vietnam's urbanization
rate is 35.21%. The Vietnamese government's goal is to reach 940 cities nationwide by 2020
with urbanization rate of 45%. After joining the World Trade Organization in 2006, market was
gradually opened up, investment environment was further improved, import and export as
well as processing trade industries developed rapidly in Vietnam.
On July 1, 2015, the government revised the "Rental Housing Law” which relaxed the
re-strictions on foreigners' purchases and ushered in a new round of climax in the shrinking
real estate market. Statistics from the Ministry of Planning and Investment show that by the
end of 2017, there were 4,500 real estate companies with a year-on-year increase of 60% and
nearly 15,000 construction companies with an increase of 9.1% year-on-year. In the past ten
years, the average growth rate of the construction industry has reached 12% which is higher
than the average economic growth level in Vietnam. According to the forecast of relevant
departments, the real estate scale will reach 15 billion U.S. dollars in 2020.
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Vietnam currently has about 200,000 elevators in use and13,000 new elevators in 2018. By 2020, Vietnam's new elevatormarket is expected to reach 20,000 units. Vietnam's elevatorindustry has limited processing capacity with parts and components importation bas-ically. The Vietnam elevator market is growing rapidly with $74.76 million in 2017 and is expected to reach $160 million by 2025. The Vietnamese government plans to build 13 subway lines in Ho Chi Minh and Hanoi by 2025. New subways and other infrastructure will bring a lot of opportunities for elevator companies. |