Vietnam Facility Management Market - Growth, Trends, COVID-19 Impact, Forecasts (2022-2027)

Vietnam Facility Management market is Segmented by End-user (Commercial, Institutional, Public/Infrastructure, Industrial, and Other), Facility Management type (In-house Facility Management and Outsourced Facility Management), and Offering type (Hard FM and Soft FM).

Market Snapshot

Vietnam Facility Management Market
Study Period: 2020-2027
Base Year: 2021
CAGR: 5 %

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Market Overview

The Vietnam facility management market is expected to register a CAGR of 5% over the forecast period 2022 to 2027. Norway is supposed to be one of the most mature and sophisticated outsourced markets for facility management services.

  • GDP growth in Vietnam is predicted to reach 6.6 % in 2022 and 6.8 % in 2023, according to updated IMF forecasts from October 2021, subjected to post-pandemic global economic recovery. The strong growth in GDP is one of the potential drivers for the Vietnam Facility Management market.
  • Textiles, food, furniture, plastics, paper, tourism, and telecommunications are all major state-owned sectors in Vietnam. Agriculture accounted for 14.8% of GDP, Industry 33.7%, and Services 41.6%, indicating that the economy is heavily reliant on industry and service sectors, which provides opportunities for Facility Management Services.
  • Cleaning remains one of Vietnam's best and most frequently outsourced building services, and sanitization demand during a pandemic drives its marginal increase. The only FM service segment exhibited positive growth during the pandemic.
  • The Companies JLL and CBRE led the market in terms of competition, leveraging their real estate expertise in their FM operations in Vietnam. Other players, such as ADEN Services and Atalian/Unicare, are putting up a tough fight, and their market share may grow during the forecast period. Other local FM companies are also likely to enhance their market positions.
  • The Companies JLL and CBRE led the market in terms of competition, leveraging their real estate expertise in their FM operations in Vietnam. Other players, such as ADEN Services and Atalian/Unicare, are putting up a tough fight, and their market share may grow during the forecast period. Other local FM companies are also likely to enhance their market positions.
  • Facilities management organizations have experienced a diverse response to the COVID-19 outbreak. The restrictions on people's movement resulted in a drop in project work and a slowdown in activity at numerous client sites. The pandemic lockdown had a negative impact on significant industry participants such as JLL, CBRE, RCR Resolve FM Vietnam, Sodexo, Aden, and others.

Scope of the Report

Facility management (FM) is a profession that incorporates many disciplines to ensure functionality, safety, comfort, and efficiency of the built environment by integrating people, process, place, and technology. FMs contribute to the business's bottom line through their responsibility for maintaining what is often an organization's most significant and most valuable assets, such as property, equipment, buildings, and other environments that house personnel, productivity, inventory, and other elements of the operation. The objective of professional FM as an interdisciplinary business function is to coordinate the demand and supply of facilities and services in both public and private organizations.

By Type of Facility Management Type
In-house Facility Management
Outsourced Facility Mangement
Single FM
Bundled FM
Integrated FM
By Offerings
Hard FM
Soft FM
By End-User
Commercial
Institutional
Public/Infrastructure
Industrial
Others

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Key Market Trends

Industrial Sector is Expected to Witness Significant Growth

  • According to the latest report by JLL real estate services firm, Vietnam has become an attractive location for foreign investors due to the country's policies supporting foreign direct investment (FDI), political stability, and robust economic growth. Also stated, Vietnam is one of Southeast Asia's top foreign investment destinations.
  • In May 2022, Sovico Corporation partnered with JERA to assess the feasibility of delivering liquefied natural gas (LNG) for power projects in Vietnam. Service and JERA will look at forming a partnership to provide clean, reliable, and efficient energy at a reasonable price to meet the region's expanding energy demands.
  • With Samsung, Microsoft, Intel, and LG investing in chip and smartphone production as well as R&D, Vietnam has become a high-tech investment hub. In March 2021, the prime minister released Decision No.10/2021/QD-TTg, which detailed the criteria for defining high-tech businesses and went into effect on April 30, 2021. This law relates to companies in Vietnam that produce high-tech products or provide high-tech services.
  • Supporting industries in Vietnam attracted a significant portion of foreign direct investment (FDI) into industrial parks (IPs) in the southern provinces and cities. For instance, in 2021, Local IPs attracted $1.1 billion in capital and investment projects in the supporting industry and other manufacturing companies, accounting for more than 80% of total capital and investment projects.
  • According to the Ministry of Planning and Investment(MPI), Vietnam continues to be one of the most attractive investment destinations for Japanese companies, especially after Vietnamese Prime Minister Pham Minh Chinh's November 2021 visit to Japan, during which he oversaw the signing of 25 major cooperation agreements worth up to USD12 billion, much of which will be disbursed in 2022.
  • Furthermore, the two prime ministers agreed to boost commercial collaborations between Japanese and Vietnamese enterprises and to strengthen the investment environment for businesses by cooperating in areas such as digital transformation, diversification of the production base, and growth of supporting industries toward resilient global supply chains, which include both nations and are crucial to economic revitalization.
Vietnam Facility Management Market

Service Sector is Expected to Witness Significant Growth

  • In April 2022, Lockout – Tagout (LOTO) is a safety procedure introduced by RCR Vietnam that ensures practical switching on or off and isolation before maintenance. Workers can also be protected from unsafe energy discharges, significant physical harm, or death by properly completing LOTO procedures.
  • With the country's tremendous economic expansion, people's lifestyles and attitudes change radically in Vietnam. While unpackaged food remains widely available at markets, more and more supermarkets have begun to provide packaged fruit, meat, and fish in recent years. Consumers are also becoming more accustomed to the convenience, comfort, and security that come with shopping in air-conditioned malls. As a result, as Vietnam evolves into a more sophisticated society, the demand for safety and security is continuously increasing.
  • In terms of revenue generation, soft services dominated the market in Vietnam during the Pandemic. The rise in demand for cleaning and security services in the country has been fueled by growth in sectors such as real estate, increased demand for retail and commercial spaces, increased foreign direct investment, and increased commercial activities.
  • In May 2022, Shinhan Financial Group, South Korea's second-largest bank, agreed to acquire a 10% investment in Tiki, a Vietnamese e-commerce startup, making it the company's third-largest shareholder.
Vietnam Facility Management Market

Competitive Landscape

The Vietnam Facility Management Market is a fragmented market. It is a highly competitive market without many dominant players present in the market.

  • February 2022 - LOGOS Vietnam Logistics Venture and Manulife Investment Management announced the formation of a joint venture to obtain an 11-hectare build-to-suit logistics asset in the greater Ho Chi Minh City area and support Vietnam's expanding demand for modern, high-quality logistics facilities.
  • January 2022 - Aden Group joined AutoFlight at its Shanghai headquarters, where the two firms signed a Memorandum of Understanding for engagement in smart air mobility and logistics. The agreement establishes a framework for the two firms to collaborate on new zero-carbon solutions based on AutoFlight's eVTOL (electric vertical take-off and landing) technology and Aden Group's digitalization expertise worldwide network of 1,500 customers in China and the rest of the Asia-Pacific region.

Recent Developments

  • January 2022 - Aden Group joined AutoFlight at its Shanghai headquarters, where the two firms signed a Memorandum of Understanding (MoU) for engagement in the domains of smart air mobility and logistics. The agreement establishes a framework for the two firms to collaborate on new and zero-carbon solutions based on AutoFlight's eVTOL (electric Vertical Take-Off and Landing) technology and Aden Group's digitalization expertise worldwide network of 1,500 customers in China and the APAC region.
  • November 2021 - CBRE Group, Inc. (NYSE: CBRE) and Turner & Townsend Holdings Limited announced the transaction in which CBRE purchased a 60% ownership interest in Turner & Townsend and formed a strategic partnership with the company had been completed. CBRE's diversification strategy advanced in four dimensions: asset types, lines of business, clients, and geographies.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Impact of COVID-19 on the Facility Management Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Vietnam policies Encouraging Foreign Direct Investment (FDI) Drives the Growth in Industrial Sector

      2. 5.1.2 Service Sector Drives the Growth in Vietnam

    2. 5.2 Market Restraints

      1. 5.2.1 Increased instances of Data Breaches and Security Threats

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type of Facility Management Type

      1. 6.1.1 In-house Facility Management

      2. 6.1.2 Outsourced Facility Mangement

        1. 6.1.2.1 Single FM

        2. 6.1.2.2 Bundled FM

        3. 6.1.2.3 Integrated FM

    2. 6.2 By Offerings

      1. 6.2.1 Hard FM

      2. 6.2.2 Soft FM

    3. 6.3 By End-User

      1. 6.3.1 Commercial

      2. 6.3.2 Institutional

      3. 6.3.3 Public/Infrastructure

      4. 6.3.4 Industrial

      5. 6.3.5 Others

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 CBRE Group Inc.

      2. 7.1.2 Jones Lang LaSalle Incorporated

      3. 7.1.3 RCR Vietnam

      4. 7.1.4 Sodexo Inc.

      5. 7.1.5 ADEN Vietnam

      6. 7.1.6 ATALIAN Global Services

      7. 7.1.7 Savills Vietnam

      8. 7.1.8 AEON Delight

      9. 7.1.9 PMC

      10. 7.1.10 P. Dussmann Co. Ltd

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE TRENDS

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Frequently Asked Questions

The Vietnam Facility Management Market market is studied from 2020 - 2027.

The Vietnam Facility Management Market is growing at a CAGR of 5% over the next 5 years.

JLL Vietnam, CBRE Group, RCR Vietnam, Sodexo, ADEN Vietnam are the major companies operating in Vietnam Facility Management Market.

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