Construction sector to bolster competitiveness

The Government has recently approved a plan of restructuring the construction sector to increase the quality and competitiveness for the period of 2014-2020.
The Government has recently approved a plan of restructuring the construction sector to increase the quality and competitiveness for the period of 2014-2020.

The restructure aims at meeting the demand of socio-economic development and the country's industrialisation and modernisation process, increasing the production capacity, quality and competitiveness, and gradually approaching the international market.

The plan sets an annual growth target of 9 – 14 percent for the construction section during the period.

In terms of construction investment, the plan set a target by the 2020 of building essential construction works which are well-designed, good quality and reasonable prices.

According to the plan, spontaneous and lavish investment, losses and corruption in the construction investment, especially for the State-funded project, will be closely controlled.

Management and using the public fund sources will be closely supervised as well as increase the proportion of non-State investment capital, especially focusing on model of public-private partner (PPP).

In the field of urban development, the plan aims to develop sustainable, clean and green urban cities, and to form some cities as big and modern as the ones of the other countries in the region. By the year of 2020, the target of urbanisation will be reached about 40 percent.

During the period of 2016-2020, 12.5 million of sq.m of social houses in urban areas will be built and per capita housing area will reach 25 sq.m nationwide.

The real estate market will be sustainably developed with a proper mechanism to overcome the present imbalance of demand-supply. The construction sector must provide a wide range of products and service as well as meet the demands of housing and real estate. It should further invest into building social houses and high-end houses as well as house-for-rent projects.

The revenue from real estate and land trading will account for 10-15 percent of the total State revenue.

To fulfil the objectives, the Government needs to further its role of management and control to the real estate market by legal tools and regulate the market by issuing proper policies relating to credit and tax issues.

The projects relating to real estate and housing nationwide will be also re-assessed and re-classify requiring the real demand of the market.

The construction sector must have concrete plans to solve suspended projects in big cities especially in Hanoi and Ho Chi Minh City.

As per the plan, the Government will have incentive policies through the financial aids, tax and credit programmes to encourage all economic sector to invest into social houses for privileged people, public employees, armed forces, and low-income people.

Besides, real estate trading will be opened for foreigners and foreign entities and overseas Vietnamese as well.

The restructuring will include speeding up the equitisation of the State-owned companies with a model which the government will not hold main shares.

The management will be improved in order to ensure the businesses operating under the market mechanism and health competition.-VNA

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