The Government has recently approved a plan of restructuring theconstruction sector to increase the quality and competitiveness for theperiod of 2014-2020.
The restructure aims at meeting the demandof socio-economic development and the country's industrialisation andmodernisation process, increasing the production capacity, quality andcompetitiveness, and gradually approaching the international market.
The plan sets an annual growth target of 9 – 14 percent for the construction section during the period.
Interms of construction investment, the plan set a target by the 2020 ofbuilding essential construction works which are well-designed, goodquality and reasonable prices.
According to the plan, spontaneousand lavish investment, losses and corruption in the constructioninvestment, especially for the State-funded project, will be closelycontrolled.
Management and using the public fund sources will beclosely supervised as well as increase the proportion of non-Stateinvestment capital, especially focusing on model of public-privatepartner (PPP).
In the field of urban development, the plan aimsto develop sustainable, clean and green urban cities, and to form somecities as big and modern as the ones of the other countries in theregion. By the year of 2020, the target of urbanisation will be reachedabout 40 percent.
During the period of 2016-2020, 12.5 million ofsq.m of social houses in urban areas will be built and per capitahousing area will reach 25 sq.m nationwide.
Thereal estate market will be sustainably developed with a proper mechanismto overcome the present imbalance of demand-supply. The constructionsector must provide a wide range of products and service as well as meetthe demands of housing and real estate. It should further invest intobuilding social houses and high-end houses as well as house-for-rentprojects.
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 ofmanagement and control to the real estate market by legal tools andregulate the market by issuing proper policies relating to credit andtax issues.
The projects relating to real estate andhousing nationwide will be also re-assessed and re-classify requiringthe real demand of the market.
The constructionsector must have concrete plans to solve suspended projects in bigcities 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 investinto social houses for privileged people, public employees, armedforces, 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 theState-owned companies with a model which the government will not holdmain shares.
The management will be improved inorder to ensure the businesses operating under the market mechanism andhealth competition.-VNA