Vietnam - a developing cleaning market

14th of January 2019
Vietnam - a developing cleaning market

ECJ correspondent Bobbie van der List reports on the current situation in the Vietnamese professional cleaning sector.

Vietnam, one of the countries in southeast Asia that has a GDP growth surpassing any of its neighbours, is a very interesting place for investment, according to analysts of big Asian financial newspapers. Vietnam's cleaning industry could benefit greatly from this advantageous position vis-à-vis its regional competitors.

This is reflected by contract cleaning in Vietnam: according to Euromonitor contract cleaning continued to show growth in 2017. Not only foreign investment is contributing to this sense of optimism in the Vietnamese cleaning market, in addition the real estate market is also important for this wave of hope.

According to Euromonitor "the real estate market is also predicted to continue thriving as market demand for apartments from upper-middle-income urban consumers is expected to surge over the forecast period". It goes on to say that considering the expected rise in the number of foreign business and apartment buildings, "contract cleaning is predicted to witness healthy forecast performance".

PAN Services, HB Cleaning and Unicare are amongst the main players in contract cleaning in Vietnam. PAN Services is by far the biggest player and specialises in providing industrial cleaning and facility services for enterprises and organisations, including foreign business in Vietnam. It is a leader in industrial cleaning, concentrated in major cities in Vietnam and employs over 5,000 certificated cleaners and professional employees.

Challenges and opportunities

With greater purchasing power, and better availability of internet in rural as well as urban areas in Vietnam, hiring contract cleaners online will likely get a boost, and enable online providers to continue to be very competitive and boost their sales. "It is more than likely to attract foreign cleaners to come to Vietnam," according to Allied Market Research.

At the same time there are big obstacles and challenges on the road to the steadily growing professional cleaning market of Vietnam. According to Allied Market Research one issue is Vietnam's slow adaptation of widely used technologies in other southeast Asian countries. "In Vietnam the major challenge the industry is facing boils down to less investment in technology for cleaning services and lack of quality and labour assurances in the long run, which is the reason why unprofessional services are also increasing." Consequently, the professionalisation of the Vietnamese cleaning market is hampered, which could eventually lead international investors to turn their back on the market.

The solution? According to insiders and analysts it is crucial to take away quality and labour condition issues in the cleaning sector, separate providers of high quality cleaning - whether contract cleaning or industrial cleaning - from providers of low quality cleaning. One way to go about this is a more assertive government taking on a tougher stance towards low quality cleaning service providers, and ensure that higher wages are achieved.

The last point - higher wages - can also result in a pull factor for regional cleaning professionals, and further develop Vietnam's cleaning industry. Now however, wages are €176 - way below some of the other professional cleaning industries in southeast Asia.

 

 

 

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