Civil construction to benefit from public investment wave: insiders

Illustrative image (Source: VNA)

Hanoi (VNA) – Civil construction is likely to be one of the sectors that enjoy direct or indirect benefits from the Government’s public investment wave, according to insiders.

A report by Mordor Intelligence showed that Vietnamese construction market value reached 57.5 billion USD in 2020 and is expected to hit 94.9 billion USD in 2026, with an annual growth rate of 8.7 percent in the 2021-2026 period. The sector made up 8 percent to the country’s growth on the average in the past 10 years, it said

Meanwhile, the General Statistics Office revealed that in 2021, the production value of the sector topped 1.9 quadrillion VND (83.6 billion USD), up 5.1 percent year on year despite COVID-19 impacts.

In the coming time, public investment will be a great resource that the Government pours into infrastructure projects to promote growth and support economic recovery.

In 2022, the Ministry of Transport is allocated the largest ever middle-term public investment captial amount of over 50 trillion VND. In the next five years, it plans to implement 67 new projects, including 12 ones belonging to the North-South Expressway.

In reality, civil engineering firms have seen promising signals from public investment.

In the fourth quarter of 2021, Coteccons Construction JSC signed contracts for new biding packages worth 10 trillion VND.

Meanwhile, as of October 2021, total backlog value of Hoa Binh Construction Group hit over 16 trillion VND.

Experts held that the demand for infrastructure and civil construction is rising in parallel with the increase in the property market, creating favourable conditions for the implementation of projects.

However, they underlined that competition will also become fiercer, especially in price as construction material prices are likely to continue to surge./.

VNA