Outlook positive for Vietnam construction industry

Outlook positive for Vietnam construction industry
Published: 11 March 2009

With work on several large infrastructure projects scheduled to begin this year, the construction and construction material industries in Vietnam are set for a recovery, experts say.

Among projects underway, work on the 105.5km Ha Noi-Hai Phong highway started this month. The VND22trn (US$1.25bn) project will include nine major bridges, 21 medium-sized bridges, and 22 fly-overs. The first phase of the highway will be opened to traffic by 2012.

The Ministry of Transport also plans to begin work on an expressway from Noi Bai to Lao Cai next April. Land acquisition for the 245km, VND20trn (US$1.14bn) expressway is nearly complete.

In the south, work on the 51km HCM City-Long Thanh-Dau Giay highway is expected to begin in the second quarter. It will cost VND15trn (US$858m).

Authorities also plan to speed up work on several other highways that have fallen behind schedule such as Cau Gie-Ninh Binh and Trung Luong-My Thuan.

In terms of housing plans, Minister of Construction Nguyen Tran Nam says his ministry plans to spend VND6trn (US$342.2m) to build 24,000 low-in-come apartments in 2009-10.

With the Government announcing an economic stimulus package and loosening monetary policy, work has resumed on several stalled construction projects, the ministry says.

Analysts say with so many major construction works kicking off, this year’s demand for construction materials especially cement and steel, is likely to be considerable.

Source: VietNamNet/Viet Nam News