Brian Jeffrey
The Ministry of Construction (MOC) has revealed the top ten key developments in the construction industry for 2024. This year marks a significant moment in market expansion, achieving a growth rate of 7.8-8.2 percent, the highest since 2020, surpassing the government’s goal of 6.4-7.3 percent set in Resolution 01.
This remarkable growth in the construction sector has acted as a catalyst for overall GDP growth. Additionally, the urbanization rate has climbed to 44.3 percent, exceeding the National Assembly’s target of 43.7 percent. The construction sector also successfully hit two other governmental targets: an 18 percent wastewater collection rate and a per capita floor area of 26.5 square meters.
In its evaluation of the real estate landscape for 2024, MOC highlighted that various solutions have been initiated to address market challenges.
“The real estate sector has shown encouraging developments, moving past its toughest times and paving the way for recovery and progress,” stated MOC.
Another significant aspect of last year was the increased focus on social housing. On May 24, the Secretariat issued Directive 34 to enhance leadership in social housing construction under new circumstances.
Additionally, MOC proposed a draft resolution to the government for establishing a preferential capital arrangement for social housing, which includes a suggested loan package of VND 100 trillion for a period of five years sourced from bond issuance. These measures aim to fast-track social housing initiatives nationwide.
Robust implementation of Resolution 18 and efforts to reorganize the administrative structure were also prominent highlights in the construction sector for 2024.
MOC has collaborated closely with the Ministry of Transport (MOT) to finalize the report on Resolution 18’s application and discuss a proposal for merging MOC and MOT. Following the reorganization, it’s anticipated that the number of units will decrease to 24-27, marking a reduction of 35-41 units.
The year 2024 also witnessed advancements in the research, production, supply, and utilization of green materials and alternatives in construction. The government has introduced policies to foster the growth of green materials.
Thanks to effective policies, there has been a rise in the research and development of various green and alternative materials, leading to an increase in the number of green buildings in Vietnam. The count of green buildings surged from around 200 in 2022 to over 500 in 2024.
In 2024, the National Assembly also endorsed the Law on Urban and Rural Planning. Continued enhancements in the institutional framework were cited as another key feature of the construction sector.
MOC also highlighted proactive decentralization in state governance and efforts to tackle challenges faced by national key projects and initiatives, aligned with the ongoing realization of Resolution 06.
The merger between MOT and MOC is set to create a new ministry with a substantial decrease in the total number of units from 42 to between 24-27.
Do Thi Phong Lan, deputy director of the Department of Organization and Personnel, confirmed at a press conference held on December 27 that the merger plan has been finalized. This plan will be submitted to the Ministry of Justice for assessment before being reviewed by the Ministry of Home Affairs (MHA), which will analyze findings from the ministries before reporting to the government steering committee on efficiency improvements.
Regarding the new ministry’s name post-merger, both ministries have agreed on ‘Ministry of Construction and Transport.’
The new structure of the merged ministry will be streamlined to 25-27 units, consisting of 6 general staff units, 13-16 professional units, and 5 public non-business units, down from the current total of 42 units—19 from MOC and 23 from MOT.
With respect to the execution of Resolution 18, MOC maintains a strong commitment, recognizing the resolution’s critical role.
“Despite the increased responsibilities and limited staffing, MOC is dedicated to ensuring a compact, efficient, and effective structural organization,” stated Lan.
