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Vietnam will still become the country with the most developed construction industry in Asia in 2020.

Despite the difficulties caused by the Covid-19 epidemic, Vietnam will still become the country with the most developed construction industry in Asia in 2020.
GlobalData: Vietnam’s construction industry led the Asian market in the third quarter
According to the General Statistics Office of Vietnam, the growth rate of our country’s construction industry in the third quarter was 5.7% higher than the same period last year. GlobalData, a leading global data analysis company based in the UK, said Vietnam’s construction industry would continue to grow in the last quarter of 2020 and could record average growth rates for for the whole year it is about 5.5%.

Before the Covid-19 pandemic broke out, the average growth rate of our country’s construction industry in the five years (2015-2019) reached 9.6%. However, the disruption of many activities due to strict government measures to prevent the spread of the corona virus caused the construction industry in Vietnam to record a 5% lower growth rate for the first time in 7 years . Specifically, the growth rates in the first quarter and second quarter of 2020 are 4.4% and 4.6%, respectively.

Dhananjay Sharma, construction analyst at GlobalData commented: “Efforts to attract foreign investors through public-private partnerships (PPP) will support the construction industry in 2020-2024. In June 2020, the National Assembly of Vietnam passed an investment law in the form of PPP to regulate investment activities and attract private investment under the PPP model “.

“Vietnam plans to expand investments in infrastructure projects to help support overall construction output growth while focusing on improving regional connectivity through infrastructure development. railway, road and air transport ”.

The housing construction sector is likely to remain under pressure in the short term. Currently, the government is still supporting the implementation of plans to build affordable housing for low-income workers. Besides, in order to support private investors, the government is also encouraging many investors to build affordable housing segment. Specifically, $ 1.3 billion was spent on housing construction in this segment from 2018 to 2022.

Mr. Sharma concluded: “The rise of Vietnam offers an alternative solution for many production facilities of large corporations in China. Foreign investment will continue to increase, which will have a strong impact on the economy as a whole ”.

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