Construction sector records highest six-month growth in four years

The construction sector grew by 7.34% in the first half of 2024, the highest performance in the first half of the 2020-2024 period, Ministry of Construction (MoC) chief Dau Minh Thanh said at a conference organized by the ministry on July 11.

Hanoi (WAN) – The construction sector recorded a growth of 7.34% in the first half of 2024, the highest performance in the first half of the 2020-2024 period, said Dau Minh Thanh, head of the Ministry of Construction (MoC) office, at a conference organized by the ministry on July 11.

Thanh said the real estate sector grew by 2.45% during the period, while the country’s urbanization rate increased by more than 43.1%.

The official noted that there has been an increase in searches for real estate information by home seekers and investors, as well as an increase in the number of transactions involving apartments, houses and plots.

Meanwhile, real estate supply has shown signs of recovery with many projects restarting.

According to the official, the fall in bank interest rates also prompted investors to offer incentives to customers, which increased their confidence and market liquidity.

He added that in the first half of this year, the MoC took many concrete actions aimed at stimulating the development of social housing.

Since 2021, 503 social housing projects have been launched nationwide with 418,200 units. Of these, 75 projects have been completed, providing 39,884 homes. Meanwhile, this year’s overall target set by the government is to complete 130,000 social homes nationwide.

To achieve this goal, the MoC called on local authorities to implement the project “Construction of at least one million social housing units for low-income earners and workers in industrial zones in 2021-2030”.

Regarding the disbursement of the VND120 trillion (USD4.72 billion) credit package for the real estate sector, Thanh said that currently, in addition to the four state-owned commercial banks, namely BIDV, Vietinbank, Agribank and Vietcombank, two other banks, Tpbank and VPBank, have registered to join the program with an amount of VND5 trillion each. He noted that so far, the banks have disbursed more than VND1.23 trillion.

The MoC has submitted five decrees and one decision to the government and prime minister detailing the implementation of the Housing Act 2023 and the Real Estate Business Act 2023. It plans to finalize a circular detailing several articles of the Housing Act and another that will guide the implementation of a framework training program for real estate agents and real estate trading floor operators, the official said./.