Construction Industry Eyes Two-digit Growth in 2009

At the Mid-year Consultative Group Meeting 2009 recently held in Dak Lak province, the World Bank (WB) forecast Vietnamese construction industry to grow at double-digit pace.

 

According to the World Bank’s report, the burst of real estate bubble, interest rate hike and soaring steel and cement prices sank the construction industry. The Vietnamese construction industry slid 0.4 per cent, the first negative growth in a decade.

 

In 2009, when the interest rate was lower and cement and steel prices dropped, the construction industry revived. In the first quarter, GDP of the construction sector expanded 6.9 per cent.

 

Based on sales reported from suppliers and producers of construction materials like cement and steel, the construction industry is believed to return its growth path. Mr Tom Tobin, Managing Director of HSBC Vietnam, said: “Although industrial and service sectors are on the fall, the construction sector is positively progressing and growing up.

 

Lower prices of construction materials and attractive interest rates have given a boost to constructional works, even FDI projects.”