Government Policies Transforming Vietnam Construction Industry: Ken Research

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Government Policies Transforming Vietnam
Construction Industry Ken Research
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The Vietnamese construction industry, which has
recorded good growth during the period 20122016,
is expected to continue its growth run in the
next five years. This possibility is indicated in
the overview of the Vietnamese construction
industry by Ken Research in its report
Construction in Vietnam, Key trends and
opportunities to 2021.
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• The report presents detailed market analysis,
  information and insights into the Vietnamese
  construction industry. It contains valuable data
  about this industry's growth prospects by market,
  project type and construction activity. The
  report also presents a critical insight into the
  impact of the industry trends and issues, and the
  risks and opportunities for those interested in
  doing business in this industry.
• Going by the 9.1 growth recorded by it in 2016,
  the Vietnamese construction industry presents
  bright growth prospects. This growth figure is in
  real terms, measured at constant 2010 US dollar
  exchange rates. The four years preceding 2016
  also recorded continuously improving annual
  growth rates 6.4 (2012), 5.9 (2013), 7.6
  (2014) and 10.8 (2015). The numbers look to
  improve further with the government facilitating
  the growth process.

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• Government role in growth
• The main push to growth of the Vietnamese
  construction industry came from the countrys
  economic recovery, coupled with governments
  investment in infrastructure and residential
  construction, and the increased issuance of
  building permits. In addition, the government
  invested in the development of industrial
  facilities under the Socio-Economic Development
  Plan (SEDP) for 2011-2015.
• The government is looking forward to invest more
  in future to enhance the growth prospects. It
  will invest in public infrastructure and
  educational healthcare buildings under the
  2016-2020 development Plan. Due to investments in
  transport infrastructure, energy and utilities
  and affordable housing projects, the country's
  construction industry is expected to expand in
  real terms over the forecast period (2017-2021).

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• The governments new master plan for seaport
  system development up to 2020 and the 2020
  Broadband Plan, launched in January 2016, would
  give impetus to economic development and growth.
  By these plans, the government expects to create
  investment opportunities and ensure social and
  economic inclusion.
• The industry's output value is anticipated to
  post a forecast-period (2017-2021) CAGR of 7.78,
  compared to the 8.33 CAGR recorded during the
  review period (2012-2016).
• Improving the standard of living
• The governments initiative to invest in the
  construction sector would lead to many positive
  outcomes, like improvement in the standard of
  living, especially for those living in rural
  areas.

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With focus on urbanization, the government is not
neglecting the growth and development of rural
areas. The launch of new rural building
programme for 2016-2020, which aims to build
schools, hospitals, roads, water-treatment
facilities and other related infrastructure in
rural areas, shows the farsightedness of the
government to check the overpopulation of urban
areas. A better transportation is also a
priority of the Vietnamese government. Under the
Vietnam's Railway Development Strategy 2020, the
government aims to increase the share of
passenger and freight transport through railways
from 0.5 of the passenger transport market and
1.0 of the total freight transport in 2015 to
13.0 and 14.0, respectively, by 2020.
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The Ministry of Transport (MOT) proposed a plan
to develop the North/South railway
infrastructure, including the construction of a
dual-track broad gauge line connecting Hanoi and
Ho Chi Minh City, two express railway sections,
and upgrades to the existing railway. The
government is strategizing to build 1.0 million
affordable houses by 2020 to increase Vietnam's
housing area per capita from 16.7m2 per person in
2015 to 25.0m2 per person by 2020. To achieve
this goal, it has launched various social housing
programmes such as the Housing for Poor Rural
Families Programme, low-rent housing for
industrial zone employees, and low-income urban
social housing-local government.
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• Major Players in Vietnamese Construction Industry
  
• Leading players in the Vietnamese Construction
  Industry are Petrovietnam Construction Joint
  Stock Corporation, Vietnam Construction and
  Import-Export Joint Stock Corporation, Cotec
  Construction Joint Stock Company, Hongha Vietnam
  Joint Stock Company, HoaBinh Construction and
  Real Estate Corporation
• Conclusion
• The current policies of the Vietnamese government
  are transforming Vietnam economy into a
  manufacturing economy. In fact, the government
  aims to develop a fully industrialized sector by
  2020. There would be likely emergence of new
  start-ups and upgrades in industries through
  various government supported programmes and
  initiatives such as the Mekong Business
  Initiative (MBI), the Finland-Vietnam Innovation
  Partnership Programme (IPP) and the National
  Technology Innovation Fund (NATIF).

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• Key Topics Covered in the Report
• Vietnam Construction Industry Research Report
• Vietnam Construction Industry Trends
• Vietnam Construction Market Forecast
• Global Construction Industry Research
• Vietnam Commercial Construction Industry
• Vietnam Residential Construction Market
• New Construction Projects Vietnam
• Vietnam Construction Equipment Market
• Vietnam Construction Industry Competition
• For more coverage click on the link below
• https//www.kenresearch.com/manufacturing-and-cons
  truction/infrastructure/construction-vietnam-key-t
  rends-opportunities/82332-97.html

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Related link https//www.kenresearch.com/manufac
turing-and-construction/infrastructure/worldwide-c
onstruction-industry-research-report/115-97.html
Contact Ken Research Ankur Gupta, Head
Marketing Communications query_at_kenresearch.com
91-124-4230204
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