Construction Industry Asia Forecast: Vietnam Review

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Construction Industry Asia Forecast Vietnam
Review

• Axis Capital Group construction equipment
  Singapore Jakarta Hong Kong

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Construction Industry Asia Forecast Vietnam
Review
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• Vietnam has transformed from one of the poorest
  country in the world to being one of the worlds
  lower middle-income country in less than three
  decades.

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• The country has already met 5 of its 20
  millennium development goals. This year, the
  country is focusing on focusing on its
  infrastructures to continue growing and
  developing.

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• Axis Capital Group, a construction company based
  in Singapore which sells and rents capital
  construction equipments in Jakarta, Indonesia,
  Vietnam and other developing countries in Asia
  has witnessed the growth and big leap of the
  country in its construction industry.

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• According to reviews, in 2013, when the countrys
  economy grew by 5, its construction spending
  also grew by 6.68.

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• With improved credit facilities, the Residential
  Construction with the help of international
  construction assistance is expected to drive the
  construction market in Vietnam during the coming
  years.

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• The construction industry market in Vietnam is
  dominated by the low-cost and affordable housing
  sector.

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• With the sustained growth of the countrys
  economy over the years, the purchasing power of
  the population has increased, particularly of the
  middle class population. This has created demand
  for affordable housing in the country.

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• The government of Vietnam is also focusing on
  providing housing facilities to the low-income
  groups. The gap between the demand and supply of
  energy in Vietnam has led to construction
  companies focusing on energy-efficient practices
  in building construction.

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• Features such as rainwater harvesting and
  renewable energy powered water- heating
  systems are being extensively implemented in both
  and new construction projects.

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• While other sectors of the economy like
  agriculture, manufacturing and services are
  struggling to stay afloat the industry has
  achieved positive growth thanks to the
  Government's economic stimulus measures, lower
  interest rates and failing prices of building
  materials.

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• Figures from the Ministry of Construction show
  that the industry achieved a year-on-year growth
  rate of 5.4 in the first half of this year. In
  its report at the mid-term Consultative Group
  Meeting in June, the World Bank forecast that the
  industry could achieve double-digit growth this
  year.

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• Over the long term, the construction industry has
  much room for growth thanks to the big complaints
  and demands for infrastructure and housing
  development.

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• In the transport sector, Vietnam plans to develop
  as expressway system from the North to the South,
  deepwater seaports in Haiphong, Khanh Hoa and Ba
  Ria-Vung Tau and a big international airport in
  Dong Nai.

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• In the energy sector, many hydropower projects
  will be built between now and 2020 to meet the
  increasing power demand. In the tourism sector,
  more luxury hotels will be developed to
  accommodate international visitors.

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• Tourism authorities have estimated that Hanoi
  will need additional 13,000 rooms of three to
  five star standard and HCM 7,000 rooms by 2020.

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• In the housing sector, the Government has
  approved an urban upgrading program to 2020 with
  total investment amounting to VND175 trillion,
  aiming to upgrade cities from grade four up,
  housing areas of low-income people and urban
  centers with poor technical infrastructure.
  Meanwhile, people also want to upgrade or build
  homes.