Vietnam Shows Great Demand for Fasteners

Vietnam is a country with many foreign manufacturers. There are many business opportunities in this Southeast Asian country. Market reports show that in the first 2 months of 2016 Vietnam reported a surplus of USD0.865 billion and the newly added foreign investment was worth USD2.8 billion (up 135% over the same period last year). A market analyst said, “Vietnam has been one of the fastest growing economies in Asia. The strategic location and rapid growth of Southeast Asia both help make Vietnam one of the most attractive countries for foreign investors.” So, what would be the quickest way for fastener companies to tap into Vietnamese market?

The first way is through the machine engineering & related components sector. According to the data provided by Vietnamese officials, the total value of the infrastructure construction of Vietnam in the following 10 years will be USD160 billion. These construction projects include the 5,000 kilometers long freeway, 300-400 kilometers long railways, and 12 airports. With the growing Vietnamese market, there is high demand for building machines, facilities, materials, bulldozers, road rollers, hydraulic presses, etc. However, Only 6% of metal processing and industrial products are made by Vietnam itself and the remaining 94% are imported. As a result, Vietnam is a very potential market.

The second way is through the automobiles, motorcycles, and related components sector. Motorcycles have been the major transport way for local Vietnamese people. Over the past 5 years, the annual sales of motorcycles in Vietnam were over 2.5-3 million units. Vietnam has become the 5 largest strategic market for motorcycle manufacturing and its government also encourages local companies to assemble and manufacture motorcycles. With the improvement of the infrastructure in Vietnam, the demand for sedans and trucks in cities is also increasing. The economic development in Vietnam is going really well. However, machines and facilities used in Vietnam are not as state-of-the-art as in other countries, so this is a market fastener companies should focus on.