By the end of 2010 the annual construction material production is expected to show a 30 percent rise, according to the new report “Construction Site Supplies Market in Vietnam: Business Report 2010” by research firm The Market Publishers.
Despite the high cost of production in Vietnam, cement has been given a huge emphasis as a particular area for growth and export prospects this year. It is forecast to scale up by 11 percent, the report said.
The sectors of granite and sanitary ware manufacturing are forecast increase by 59 percent and 39 percent respectively. As underscored in the study, by the end of 2010 the export of construction materials made in Vietnam will make up $500 million and by 2015 it is going to reach $1 bn.
The optimistic forecasts for H2 10 as well as a galloping development of construction sector account for the high attractiveness of the real estate market for foreign investors which are subject to the government’s particular attention.
According to the Ministry of Construction in Vietnam, by the end of 2010 the investments are expected to increase by 34 percent, and the construction sector production – by 15 percent. Moreover, around 37 million sq m are required to be built to meet the existing market needs. The construction sector development is one of the government policy priorities. Thus, 12 sq m of living area are expected to be constructed for every person who lacks a place to live in, and there are more than 7 million needy people in Vietnam. The state development program of Vietnam housing fund to 2020 has been carried out to put that plan into practice.
Being 13th among the most densely populated countries in the world and demonstrating rapid development Vietnam’s economy has an enormous growth potential for the construction market and, in particular, domestic construction material demand growth. Today almost all construction equipments are imported to Vietnam and are up to the international standards. The major suppliers of construction equipment are Japan, China, Korea, Singapore, Germany.
The report says that 2009 saw a slowdown in construction industry where demand for steel products was 5.3 million tons, 4.7 million tons of which were manufactured at local plants. In 2009 a low level of production was also highlighted in the following manufacturing sectors: constructional steel (-9%), structural glass (-13%), roofing materials (-4%).
Source: dtinews.vn