Demand for Vietnam's construction machinery is large

Recently, CCPIT professionals stated that Vietnam’s market development in 2012 depends on three conditions: first, whether the euro crisis will pass; second, whether the US economy will be able to flourish; and third, whether Vietnam has new stimulus policies And new investment plans.

Vietnam is a relatively weak country in the manufacturing industry. The entire industry in Vietnam began to accumulate with assistance from China and the Soviet Union. Since the 1990s, Chinese, Taiwanese, South Korean and Japanese companies have come to invest in Vietnam. Japan mainly invests in the motorcycle industry in Vietnam; in Taiwan, there are more plastics machinery and packaging machinery; South Korea invests more in the real estate industry, and then there are some manufacturing industries later. Especially in southern Vietnam, all manufacturing equipment is imported from abroad.

At present, the Vietnamese agents are mainly divided into two categories, one is a local state-owned enterprise in Vietnam; the other is a private agent. In recent years, private agency companies have developed rapidly. In general, construction machinery agents in southern Vietnam are more dedicated and are mostly run by Chinese. The style of doing business is also relatively positive.

At present, in Vietnam, the speed of development of agents depends mainly on the products of the company's agents, and high-quality and inexpensive products are sold in Vietnam. In addition, the market attributes are determined by the attributes of the product. Agents' products must be suitable for this market in Vietnam. There was a case in which a company's rotary drilling rigs had been sold in Vietnam. However, some issues were exposed during the construction process. Because of the low topography in some parts of Vietnam, after the rotary drilling rig has drilled, all the water is poured out. Concrete pouring is a problem. Later, after the equipment was improved according to the needs of the local construction environment, the sales situation here was not bad. Therefore, if Chinese companies want to enter the Vietnamese market, they must first investigate the local work environment in Vietnam and the local people's level of operation of machinery, and develop products suitable for local Vietnam. For example, in Vietnam, where there is a lot of rain and the climate is hotter, the corrosion resistance and heat dissipation of mechanical products are stronger.

It is understood that according to the Vietnamese government’s plan, the Vietnam market will have 160 billion US dollars worth of projects to be developed in the next 10 years, including 5,000 km of expressways, 300-400 km of railways and many ports. There will be a large amount of investment from the private sector and the public sector flowing into these infrastructure construction projects.

The Vietnamese government is also encouraging the public-private partnership model, which has been proven to be an effective method for raising capital in Vietnam's infrastructure projects. This model is very attractive because it can combine the financial, regulatory and administrative support of the private sector with the public sector in the fields of construction, management and finance.

The Ministry of Construction of Vietnam stated that overseas investors are also looking for more real estate development projects in Ho Chi Minh City, and the government has issued licenses for these similar real estate projects. Vietnam is currently planning a mega-project: Vietnam's National Administration Center will move west. This work plan has taken two phases for 40 years and it is estimated that it will cost US$90 billion to complete. In addition, there is the construction of the seaport system (with an estimated investment of US$5 billion), the construction of Longcheng Airport (US$12 billion), the capital construction plan (US$60 billion), and the construction of 18 highways (US$48 billion).

Vietnam's infrastructure construction projects are on the rise. The level of economic development is similar to that of China in the 1980s. Construction machinery is in urgent need of excavators, bulldozers, graders, road rollers, elevators, tower cranes, concrete mixing equipment, steel structures, and truck cranes. , piling machinery and other products.

At present, Vietnam’s demand for machinery and technology is very strong, while Vietnam’s domestic industry is still in its infancy and cannot meet the needs of social development. More than 90% of machinery and equipment rely on foreign imports. However, the local construction machinery company in Vietnam prefers to sign a mechanical purchase contract or import contract with a foreign company given that consumers in the country have insufficient confidence in the local machinery purchase. The current development bottleneck of Vietnam's construction machinery industry is not easy to be broken. Domestic sales are sluggish, and foreign machinery imports account for 50% of Vietnam's total imports. For China's construction machinery companies, it is a rare opportunity for development.