VIR reported that after a period of social distancing to avert the pandemic outbreak in 2021, Vietnam’s construction companies had approached 2022 with an upbeat disposition due to the revival of economic activity and anticipated a surge in public investment and real estate market activity. However, 2023 has begun and there has been a significant gap between plans and execution for building companies. Both anticipated growth drivers for the construction industry failed to materialize as public funding was disbursed slowly and the real estate market slowed to a halt. Additionally construction industry was under pressure from growing input prices and outstanding debts. According to recent VNDIRECT research report, Vietnam’s building sector could revive due to the strategy of boosting public investment and the price adjustment of raw materials. In 2023, it is anticipated that over USD 33 billion in public investments will be made. VNDIRECT anticipates that the disbursement of public investment in 2023 will increase by 20-25% compared to the actual disbursement in 2022. This is due to the bottleneck of a dearth of construction stone and backfill soil being eliminated when the government grants mining permits for new mines, and the prices of construction materials such as iron and steel, cement, and construction stone are anticipated to decrease next year. In 2023, the background variables of lower input prices and better employment resulting from the public investment drive will hopefully improve the outlook for contractors.
VIR reported that after a period of social distancing to avert the pandemic outbreak in 2021, Vietnam’s construction companies had approached 2022 with an upbeat disposition due to the revival of economic activity and anticipated a surge in public investment and real estate market activity. However, 2023 has begun and there has been a significant gap between plans and execution for building companies. Both anticipated growth drivers for the construction industry failed to materialize as public funding was disbursed slowly and the real estate market slowed to a halt. Additionally construction industry was under pressure from growing input prices and outstanding debts. According to recent VNDIRECT research report, Vietnam’s building sector could revive due to the strategy of boosting public investment and the price adjustment of raw materials. In 2023, it is anticipated that over USD 33 billion in public investments will be made. VNDIRECT anticipates that the disbursement of public investment in 2023 will increase by 20-25% compared to the actual disbursement in 2022. This is due to the bottleneck of a dearth of construction stone and backfill soil being eliminated when the government grants mining permits for new mines, and the prices of construction materials such as iron and steel, cement, and construction stone are anticipated to decrease next year. In 2023, the background variables of lower input prices and better employment resulting from the public investment drive will hopefully improve the outlook for contractors.
