Market Trends of Vietnam Crane Industry
This section covers the major market trends shaping the Vietnam Crane Market according to our research experts:
Increasing Demand for Rental and Used Cranes may Hinder the Growth of the Market
Vietnam has emerged as a developing country majorly after becoming a member of WTO in 2007, the country has attracted several foreign direct investments especially from Korea, China, America, France, and Japan.
Construction and industrial activities in the country have increased significantly, thereby, creating a demand for cranes and other construction machinery.
Although the domestic firms in Vietnam have been offering crane rental service for more than a decade, the demand for the rental segment increased only since 2012. The end-users are benefited by the hassle-free operation of the construction and material handling activity. Renting the equipment augments in reducing the initial investment and the operational and maintenance costs.
Apart from crane rental services and leasing of cranes, the availability of used cranes has helped the fleet operators to maintain a wide range of diversified cranes at their disposal without requiring much capital investment, thereby, sufficing the business needs of customers with operational flexibility.
Asia Machinery Solutions (AMS), a leading crane rental company in Vietnam has been offering mobile cranes, crawler cranes, tower cranes, and forklifts for several industrial and construction activities. The company currently provides cranes with capacities ranging from 25 metric tons to 500 metric tons. AMS has directly imported equipment from leading Japanese manufacturers that include Kato Works, Tadano, Kobelco, and Hitachi Sumitomo.
A used crane is considered to be a significant cost-efficient investment for fleet operators. The saving made on a used crane is significantly high and would easily amount to hundreds of thousands of dollars, in comparison to a new crane purchase.
Price has been a determining factor, which prevents the purchase of a new crane, thereby, affecting the market growth to a significant extent. A lot of companies and fleet operators require the cranes to do the work but are reluctant to invest, as they doubt that they would not have enough work to recoup the investment from new equipment.
Additionally, another advantage of renting a crane is that the operators can get first-hand experience of the crane's performance before making a purchase decision. The increase in the prices of new cranes further affects the market for new cranes and pose a significant concern to the crane manufacturers.
Construction and Infrastructure Segment expected to Dominate the Market
Construction activities in Vietnam have increased over the last three years. The industry's output value - measured at constant 2017 US dollar exchange rates - increasing from USD 53.0 billion in 2017 to USD 57.5 billion in 2018.
The government in Vietnam aims at increasing the housing area per capita from 16.7 m2 in 2015 to 25 m2 by the end of 2020. Ongoing and future construction projects in the country include Thu Thiem Smart City, Metro lines development (USD 800 million), Long Thanh International airport (USD 16 billion), and expansion at the Tan Son Nhat International airport.
Considering all the ongoing and future construction activities in Vietnam, the crane market is expected to witness steady growth over the forecast period.
Manitowoc and Liebherr cranes are the most used cranes in the construction sector.
- During July 2018, Manitowoc cranes were used in the construction of Vietnam's tallest building, the Landmark 81 due to their speed and efficiency. The cranes supplied by Manitowoc were two MR 418 luffing jib cranes and two MCT 205 topless cranes.
- In addition to this, Manitowoc has also supplied tower cranes for the leading construction company in the country. Coteccons, a construction firm has also added 20 new MCT 205 cranes and three MCR 160 luffing jib cranes to its lineup to meet the construction demand.
