Wednesday, February 26 2020


Construction sector creates more favourable conditions for people, businesses

Update: February, 04/2020 - 10:29


Minister of Construction Phạm Hồng Hà. — Photo

Minister of Construction Phạm Hồng Hà talks to the Government Portal about the outstanding results of the construction sector in 2019

Could you tell about the results of the construction sector last year?

The sector reached a growth rate of 9.1 per cent last year, contributing 1 per cent to the nation’s economic growth. State management of construction was improved, with more quality guaranteed.

The country's urban system expanded to 835 areas, while the urbanisation rate reached 39.2 per cent, exceeding the target set by a resolution in the 12th Party Congress. The real estate market was controlled, following four years of continuous growth. The construction material market developed, meeting the requirements of domestic consumption and exports. Housing development support programmes were launched, and 95 per cent of people who contributed to the revolution benefitted.

The sector focused all its efforts on key and long-term tasks and made proposals to fix construction problems in 2019. The sector also focused on institutions and State management tools to better serve people and businesses. The business and investment environment improved while the quality of construction works was raised.

How did you improve institutions and the business and investment environment to create more favourable conditions for people and businesses?

The task of improving institutions and State management tools is a key, long-term task. There were some outstanding results in 2019. Firstly, the ministry completed a huge amount of legal documents. It also proposed a range of projects to the Government, including one to develop materials for coastal and island constructions by 2025, and a strategy for urban development. 

Secondly, the revised Law on Construction, which is expected to be approved at the 14th National Assembly in May 2020, aims to reform administrative procedures and simplify investment and business conditions, including reducing the evaluation and licensing time from 30 days to 20 days. 

Thirdly, the ministry has advised the Government to issue a decree on construction cost management along with two projects to perfect technical regulations and prices.

What solutions do you have to develop social housing?

The ministry has proposed both short-term and long-term solutions to manage and develop the housing and real estate markets in 2020 and in the future. Restructuring the real estate market in parallel with implementing the National Housing Development Strategy, especially social housing, is vital. The ministry plans to diversify residential real estate and promote the development of social housing for workers and houses for rent.

At the same time, it will continue to strictly monitor the use and exploitation of urban land funds for social housing projects as well as submit solutions to restore old residential buildings. The ministry will also closely co-operate with relevant agencies and localities to monitor the implementation of social housing projects to promptly deal with any violations.

What is your message to the sector’s officials and staff?

In 2020, the ministry has set targets for total construction production value increasing by 9-10 per cent compared to 2019, the urbanisation rate reaching about 40 per cent, the proportion of urban people provided with clean water at 90 per cent, and the average housing area reaching 24sq.m per person.

To achieve the goals, every official and construction worker needs to be motivated to carry out their tasks. All of us have to work together to eliminate violations and corruption. — VNS

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