The Prime Minister recently approved a blueprint for the restructuring of the construction sector to maximise its efficiency and competitiveness before 2020.

The scheme seeks to raise the construction sector’s capacity to satisfy socio-economic development demand and serve national industrialisation and modernisation. It aims to augment the average annual growth of the sector’s production value by 9-14 percent.

Between now and 2020, the sector must eradicate the scatter, loss, waste and corruption in its investment, especially in projects funded through the State budget. It is required to gradually raise the proportion of non-budget capital in projects, and increase the application of the public-private partnership (PPP) investment model.

The newly approved blueprint aims to raise the development of cities to match the modernity and competitiveness of those in neighbouring countries. Some cities will have specified functions, such as specialising in heritage, tourism or scientific activities. The urbanisation rate is expected to reach 40 percent by 2020.

Per capita housing area is set to stand at 25 square metres nationwide by 2020. About 12.5 million square metres of social housing will be built in urban areas between 2016 and 2020.

The plan also defined the directions for restructuring the sector’s major industries and products, including social housing development, the real estate market and construction materials production.

The Government will introduce policies encouraging all economic sectors to invest in social housing and allowing Vietnamese expatriates and foreign individuals and organisations greater operation scope in the real estate market.

The construction sector is also set to accelerate the privatisation of State-owned enterprises and apply modern administration methods to facilitate company operation under the market mechanism.-VNA