Thursday, 25 April 2019

Vietnam Facility Management Market Outlook to 2023


The report titledVietnam 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)covers introduction on Vietnam Facility Management market, business acquisition process vendor selection process, trends and developments, issues and challenges, SWOT analysis, competitive landscape and government regulations. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Market Overview
Vietnam Facility Management market is at a growing stage. The industry revenue has increased at a positive CAGR of over 5% during the period 2013-2018. This growth was supported by higher FDI inflows in the economy, public sector outsourcing, cost control measures, greater demand from end user sectors (such as commercial, industrial and others), rapid urbanization and technological advances, along with rising demand for commercial and residential spaces in the country, wherein market players catered to the needs of the clients for both hard and soft services. The customers in the market are highly price sensitive and a lack of awareness about the importance of facility management services has resulted in low penetration of these services.
Integrated Facility management market is relatively at a growing stage in the country and its popularity has grown in outsourcing of services and an aim to achieve cost and operational efficiency, for both clients and vendors. Facility management services are used by both local companies and MNCs in the country. However, the local companies usually prefer single or bundled services due to their small scale of operations whereas the MNCs prefer integrated facility management (IFM) services in Vietnam.
Vietnam Facility Management Market Segmentation
By Soft Services and Hard Services: Soft services dominated the market in Vietnam in terms of generating revenue in 2018. The development in sectors such as real estate, greater demand for retail & commercial spaces, increase in foreign direct investment and an increase in commercial activities has amplified the demand for soft services in the country owing to rise in need for cleaning and security services. On the other hand, hard services accounted the remaining revenue share in facility management market.
By Type of Services: Bundled services contributed a major share in terms of generating revenues for the industry in 2018. Bundled services are largely demanded by retail and commercial private sectors. This was followed by Single and integrated services.
By End User Sectors: Commercial sector contributed the highest revenue share in the overall facility management industry in Vietnam in 2018. This was followed by the industrial, hospitality, residential, infrastructure and other sectors respectively. Infrastructure sector was largely driven by government expenditure on maintaining and developing roadways, rails and airports.
By Personnel Type: The facility management market in Vietnam in 2018 was dominated by services which were provided through in-house labor to the other companies in the market. It accounted more than half share in total revenue in the FM market, the remaining share accounted by outsourced personnel.
By Soft Services (Housekeeping, Security, Landscaping and others): Housekeeping services was the largest contributor to the soft services industry in 2018 followed by Security Services, landscaping and other soft services including property services, mail delivery services and other services. Growth in residential, commercial and retail spaces has led to increase in demand for cleaning services in the country.
By Hard Services (Electromechanical services, Operations and Maintenance Services, Fire Safety and Security Systems): Electromechanical services (including HVAC) have dominated the hard services market in Vietnam followed by operational and maintenance services and fire safety and security systems during 2018 in terms of revenue. Electromechanical services has the highest share resulting from implementation of better technology and a growing demand for FM services from industrial sector where complex machinery and critical installations need to be services.
Competitive Landscape
The Vietnamese Facility Management services market is moderately concentrated in nature. JLL is the market leader and has the highest market share in the Facility Management market in Vietnam on the basis of revenue in 2018. This was followed by CBRE, RCR Resolve FM Vietnam, Sodexo, Aden, Atalian and others. These market players compete on the basis of price of services, quality and knowledge of services, track record and past history within the industry and sectors serviced, skilled workforce, and established client relationships.
In future, it is anticipated that Vietnam facility management industry revenue will increase at a positive CAGR during the period 2018 – 2023E. In Vietnam, it is expected that the demand for both soft and hard services will be augmented largely due to growth in the Government outsourcing through Public Private Partnerships (PPP) and Build operate transfer (BOT). Increasing demand from multinational clients is likely to drive future demand for Integrated Facility Management (IFM) services in Vietnam with industrial expansion, commercial office buildings and infrastructure sector being the future penetration sectors for IFM services. The growth in residential, retail, commercial, industrial and infrastructure sectors’ spending will further increase the demand of FM services.
Key Segments Covered:-
By Soft Services and Hard Services
Soft Services
Cleaning services
Security Services
Others
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
Residential Sector
Retail Sector
Industrial Sector
Infrastructure And Others
Key Target Audience:-
Facility Management Companies
Real Estate Construction Companies
Foreign investors
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023E
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:-
Executive Summary
Research Methodology
Introduction on Vietnam Facility Management Market
Vietnam Facility Management Market Size by Revenue (2013-2018)
Vietnam Facility Management Market Segmentation
Vietnam Facility Management Market Segmentation by Soft and Hard Services
Vietnam Facility Management Market by type of services (Single Services, Bundled Services and Integrated Services)
Vietnam Facility Management Market by End User Sectors
Vietnam Facility Management Market by Personnel Type
Trends and Developments in the Facility Management Market
Issues and Challenges in the Facility Management Market
Government Regulations in Vietnam Facility Management Market
SWOT Analysis of Vietnam Facility Management Market
Competitive Scenario in Vietnam Facility Management Market
Shares and Company Profiles of Major Players in the Market
Vendor Selection Process in Vietnam Facility Management Market
Vietnam Facility Management Market Future Outlook and Projections (2018-2023E)
Analyst Recommendations in Vietnam Facility Management Market
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