Chủ đề: construction

Northern Lang Son province and the Sun Group began construction of the Mau Son cable car and eco-tourism complex at Mau Son Peak in Loc Binh district on May 20. This is a key project within the Mau Son tourism development roadmap to 2030 to become a national tourist site. The project is expected to be completed in 2025, with 5 million visitors targeted by 2030.

The Covid-19 pandemic and rising material prices eroded the profit margins of most construction companies in 2021. Growth in the industry is now at its lowest for ten years, but Vietnam’s construction market remains a bright spot in the region. Construction companies still have many opportunities for growth.

A transport connection project in northern mountainous provinces is being funded by the ADB and the Australian Government, with total investment of more than VND5.3 trillion ($235 million) and including eleven bidding packages implemented over four years from 2021 to 2024. The first bidding package was deployed in December 2021 and the remaining ten will begin between April and June.

The Ministry of Transport (MoT) plans to begin 38 projects and complete 30 others this year. It has been assigned an unprecedented medium-term public investment plan amounting to more than VND50 trillion ($2.2 billion).

The Ministry of Transport will begin eight important traffic projects before the end of the year, including six road projects nationwide and two waterway projects in the Mekong Delta, with total investment of more than VND25 trillion ($1.09 billion). One of the six road projects is the Results-based Operation for Local Bridge Construction and Road Asset Management project (LRAMP) in 50 cities and provinces, with investment of more than VND9.2 trillion ($400.33 million) from the World Bank’s ODA fund and counterpart capital from Vietnam.

Construction businesses have faced a host of difficulties from Covid-19, such as supply chain disruptions, suspended operations, and project closures. These difficulties are summarized in a Ministry of Construction report on implementing solutions to support businesses and individuals affected by the pandemic.

Vietnam’s road network development strategy to 2030 needs an estimated VND900 trillion ($39.47 billion), but in reality the figure may be as high as VND1.5-1.7 quadrillion ($65.78-74.56 billion), according to experts. The opportunity also remains to exploit other sources of capital, such as foreign investment, other than only relying on bank loans.

The key North - South Expressway project has been delayed due to a lack of soil for embankments. The government has therefore issued a resolution on strengthening “specific mechanisms” for the People’s Committees of cities and provinces the project passes through.

Construction sites in Da Nang outside of “red zones” will be permitted to resume work from September 16, with worker numbers to be limited under pandemic prevention measures.

Central Da Nang city has allowed 25 key construction works to resume given that Covid-19 has been largely brought under control in the local area, to contribute to the city’s socio-economic development. It also assigned districts to make decisions on which works can resume.

The Ministry of Construction has proposed that all construction in “red zones” (areas at high risk from Covid-19) be suspended, except for projects assisting pandemic prevention and control.

The Vietnam Association of Construction Contractors (VACC) and a number of other associations have suggested urgent solutions to allay the difficulties facing construction and real estate businesses affected by Covid-19. Recommendations include extending the time to pay value added taxes; cutting corporate income taxes by 50 per cent; implementing a 0 per cent interest rate on bank loans in service of construction sites and projects that have had to cease construction due to anti-pandemic measures; and deferring payment of land use fees.

After many delays, an ODA project connecting traffic in the three provinces of Lai Chau, Lao Cai, and Yen Bai with the Noi Bai - Lao Cai Highway will begin construction in October. The project is funded by the Asian Development Bank and the Australian Government, with total capital of VND5.34 trillion ($233.44 million).

The Hanoi Department of Transport has permitted six key traffic projects in the capital to continue during the current social distancing period. Contractors assigned by the department have committed to undertaking pandemic prevention measures.

The steel price has increased 40 per cent this year compared to 2020, pushing up construction costs by 10 per cent. Many contractors have delayed construction while waiting for prices to fall, to avoid financial damage.

The Prime Minister has approved the building of infrastructure at an eco-industrial park in northern Hung Yen province with total investment capital of VND1.788 trillion ($76.9 million). On 143 ha, the project is expected to be completed within 36 months.