Vietnam’s construction sector grows in 2016

According to media reports, Vietnam’s construction sector grew by 9.1% in 2016 on the back of the economic recovery, the government’s investments in infrastructure and residential construction as well as the increasing issuance of building permits. The growth in 2016 followed a growth of 10.8% in 2015, 7.6% in 2014, 5.9% in 2013 and 6.4% in 2012 on a yearly basis.

The country’s construction sector is expected to improve further between 2017-2021 on the back of the government’s plans to improve living conditions in rural areas, to increase the share of passenger and freight transport by railway and to develop sea ports in order to increase trade volume in the country.

Accordingly, the government is planning to build schools, hospitals, roads, water-treatment facilities in rural areas; construct a dual-track railway line connecting two Vietnamese cities, Hanoi and Ho Chi Minh City; construct two express railway sections as well as upgrades to the existing railway and build 1 million affordable houses with an aim to increase housing area per capita, all by 2020.

The reports also indicated that the country is planning to improve the manufacturing sector in order to become a fully industrialized country by 2020.