In its first edition report on the South East Asia video surveillance market, IMS Research (recently acquired by IHS Inc.) forecasts that the Vietnam is fastest growing market between 2010 and 2015, at a CAGR (Compound Annual Growth Rate) of 22.3 percent. However, it should be noted that the market in Vietnam was estimated to account for less than 10 percent market share in this region in 2010.
South East Asia is comprised of not only developed markets like Singapore, but also new emerging markets like Vietnam and Indonesia. In these emerging markets, the government is continuing its investment in infrastructure and industry development. For example, Vietnam recorded a year-on-year GDP growth rate of 7.7 percent for the industry and construction sector in 2010. Its aim is to become an industrialized and modernized country by 2020.
Cheryl Li, report author and research analyst at IMS Research comments, “The highest priorities for Vietnam are transportation, energy, irrigation and urban development projects. For example, about 600 kilometers of roadway construction is planned by 2015; the existing railway will be upgraded; and several international airports and electrical plants will be developed. All these projects create huge demand for security products and systems.”
Li continues, “Import tax has been as high as 30 percent – 35 percent in Vietnam; therefore many European and American manufacturers did not focus on this market. After entering the World Trade Organisation (WTO), Vietnam has reduced import tax, which has attracted more companies to this market. Most of the governmental projects use network video surveillance systems; therefore the network equipment market is forecast to exceed the analogue market by 2012 in Vietnam.”