Construction enterprises are bullish about the sector’s prospect in 2024. (Photo: VNA) Accordingly, 52.5% of the surveyed expect positive changes, 36.9% forecast thesector will remain unchanged as compared to 2023, while 10.5% believe themarket could grow gloomier this year.
Although the construction market may not carve out robust results in 2024,enterprises expressed their hope that 2024 could be “the first brick” that lays foundation for a recovery and new development circle.
Vietnam Report General Director Vu Dang Vinh said that enterprises expect theirbusiness will be backed by stable macroeconomy, ensured major balances, andbrighter realty market with legal bottlenecks to be removed and better marketconfidence.
The State Bank of Vietnam has set a credit growth target of 15% this year,creating favourable conditions for credit institutions to provide sufficientcapital for the market in a timely fashion, Vinh stressed, adding interestrates have cooled down, easing burden for construction firms.
Vinh described public investment as a pillar and locomotive for the Vietnameseeconomy at the moment and in both mid- and long-terms, saying investment intransport infrastructure development has been accelerated, and disbursement ofpublic capital will be at its peak this year for key transport projects.
Some 677.3 trillion VND (29.29 billion USD) is set aside for public investment thisyear, and 95% of which must be disbursed under a Prime Minister’s decision. Ofthe total amount, up to 422 trillion VND is for transport infrastructureconstruction, which is expected to prop up the construction sector.
According to Vinh, the domestic construction market is expected to benefit fromthe FDI wave, with 36.6 billion USD funneled into the country in 2023, ayear-on-year surge of 32.1% despite global economic uncertainties. Around 23.18billion USD was disbursed in the year, up 3.5% year-on-year, and marking arecord high thus far.
He said the strong foreign capital inflow has created a more exciting prospectfor 2024 as Vietnam’s geopolitical and production position have beenconsolidated.
During January – February this year, 2.8 billion USD in foreign capital was disbursed,the highest figure recorded for the same time in the past five years, opening upnumerous opportunities for the industrial construction sector.
Besides, enterprises’ positive sentiment also comes from their intrinsicstrength with effective financial management capacity, successful applicationof digital transformation into management and operation, high-quality humanresources, and improved prestige and brands, he added./.
VNA
