Construction sector grows 9.2% in 2018
17:01 | 04/01/2019

VGP – In 2018, the production value of the construction sector attained a growth rate of 9.2%, while the work of building institutions, strengthening the effectiveness and efficiency of specialized state management saw many important results, thereby contributing to joining the whole nation in fulfilling the socio-economic targets.

Deputy Prime Minister Trinh Dinh Dung at the event - Photo: VGP

These are the contents confirmed in the report of the Ministry of Construction (MOC) at a conference to review the sector’s performance in 2018 and implement the plans for 2019 in Ha Noi on January 4.

The event was attended by Deputy Prime Minister Trinh Dinh Dung and leaders of some ministries, departments, sectors and National Assembly bodies.

According to the report, the construction sector’s growth rate in 2018 (9.2%) was at a high level compared to the initial plan (8.46-9.21%) and higher than the national average. Among the 16 targets set for 2018, three were surpassed, 11 were met and only two failed to be satisfied, including building glass (265 out of 320 million square meters) and ceramic tiles (705 out 770 million square meters).

As reported by VPBank Securities (VPBS) and The FitchGroup Company, in the third quarter of 2018 alone, the total social investment capital reached VND507 trillion (US$21.8 billion), up 12.5% year on year, of which the State budget capital rose by nearly 15%, a two-fold increase compared to the growth rate of the previous two quarters. The private investment capital, which accounted for the largest proportion (42.5%), improved slightly and grew by nearly 19%, the highest in many years.

In addition, in the first 10 months of last year, more than US$5.7 billion worth of FDI was poured into the real estate market. Currently, up to 45 public-private partnership (PPP) projects have already been planned for implementation with a total investment of US$127 billion, mostly in the transport and energy areas.

Photo: VGP

Over 41% of administrative procedures abolished

Institution building was a highlight in the MOC’s working performance in 2018. The ministry’s administrative reforms, mainly administrative procedures, achieved a number of significant results, particularly in management over planning and urban development investment, verification of design and cost estimate, and granting of construction licenses.

As assessed by the World Bank, Viet Nam always stands third among ASEAN countries and 20th among the 190 economies concerning the target of granting construction licenses.

In the implementation of the Government’s direction on reducing administrative procedures and creating favorable conditions for business production, the construction sector abolished 41.3%, simplified 47.3% and maintained 15% of the total 215 business conditions last year.

The real estate and building material markets grow stably

The state management over the real estate market was effectively implemented, with the market’s growth being maintained. Besides, the sector also focused on developing new, environmentally friendly materials.

In 2018, the MOC continued to effectively implement the reshuffle and equitization of state-owned enterprises in the construction sector according to the plan approved by the Prime Minister.

By Vien Nhu

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