An Allied Market Research report has found that Vietnam’s private security market is set to record a compounded annual growth rate of 7.9 percent a year between 2020 and 2027 at which point it will be worth US$1.29 billion.
The security sector in Vietnam employs a huge number of people. Almost every mid-sized enterprise with street frontage will have a security guard stationed in front. These are general low paying jobs, with security guards receiving not much more than the minimum wage in most cases. It’s not clear what training security guards receive, if any at all.
Of note, foreign investment in Vietnam’s security sector is restricted. Foreign security firms that wish to operate in Vietnam’s security services sector must meet the conditions outlined in Decree 96/2016/ND-CP. These include:
- They can only form a joint venture;
- They can only provide capital for equipment and machinery; and
- The minimum investment is US$1 million.