10 typical highlights of the Construction industry in 2024

Completing draft laws and specialized legal corridors

On November 26, 2024, the 8th Session of the 15th National Assembly voted to pass the Law on Urban and Rural Planning (Law No. 47/2024/QH14) with a high approval rate. The Law takes effect from July 1, 2025. Along with that, the Prime Minister approved the Urban and Rural Planning System for the 2021-2030 period, with a vision to 2050 in Decision No. 891/2024/QD-TTg. In the coming time, the Ministry of Construction will focus on drafting and submitting to the Government for promulgation 2 Decrees, 1 Decision and promulgating under its authority 2 Circulars guiding the law, ensuring synchronous implementation with the law.

Along with the amended Land Law passed at the 7th Session of the 15th National Assembly , the two Laws on Housing and Law on Real Estate Business took effect 5 months earlier, from August 1, 2024. To put the policy into practice early, the Ministry of Construction submitted and the Government issued 5 Decrees and 1 Decision to ensure they take effect simultaneously with the Law on Housing and the Law on Real Estate Business.

Two other draft laws drafted by the Ministry of Construction, the Law on Urban Development Management and the Law on Water Supply and Drainage, have also been included in the 2025 Law and Ordinance Development Program by the National Assembly. It is expected that the National Assembly will give opinions at the 9th Session (May 2025) and pass it at the 10th Session (October 2025)...

Promote decentralization

In 2024, the Ministry of Construction reviewed and advised the Government to issue a Decree replacing Decree No. 15/2021/ND-CP and a number of related Decrees on construction investment project management, strongly decentralizing administrative procedures under the Ministry's authority to localities for implementation.

With the above thorough decentralization, it is expected that after the Decree takes effect, the number of administrative procedures from the Central agencies that will be further decentralized to localities for implementation will be about 95% regarding appraisal and inspection of acceptance work and 100% regarding the issuance of practice certificates and certificates of construction activity capacity; reducing about 10% of project and construction dossiers requiring appraisal procedures at State agencies.

Actively remove difficulties for key national projects

Implementing the Government's direction in Official Dispatch No. 02/2024/CD-TTg, the Ministry of Construction and the Ministry of Transport coordinated to organize an online conference with relevant ministries, branches and 46 localities, and established an inter-ministerial working group to focus on removing difficulties related to construction norms and unit prices, exploitation and supply of construction materials for projects. Up to now, the Ministry has issued 250 norms, timely amendments and supplements to remove difficulties and obstacles related to construction norms and unit prices for key and important national transport projects and works.

The Ministry of Construction also coordinated with ministries, branches and localities to handle newly arising requirements according to their functions and tasks, and inspected 120 times as planned, of which 7 projects and packages were approved for completion and put into use... The projects assigned by the Prime Minister were strictly controlled and promptly directed so that investors and contractors complied with design requirements, technical instructions and technical standards and regulations applicable to the project.

Highest growth since 2020

In 2024, the growth of the Construction industry will reach about 7.8% - 8.2%, exceeding the target assigned by the Government in Resolution No. 01/NQ-CP (6.4% - 7.3%). This is also the highest growth rate achieved by the Construction industry since 2020, which is the driving force for the overall GDP growth of the economy; The urbanization rate will reach 44.3%, exceeding the target assigned by the National Assembly of 43.7%. Compared with the target assigned by the Government in Resolution No. 01/NQ-CP, the Construction industry will simultaneously achieve 2 other targets, including: Wastewater collection and treatment rate of 18%; Average housing area nationwide is 26.5 m2 of floor space/person.

Special attention to social housing

Implementing Directive No. 34-CT/TW of the Secretariat on strengthening the Party's leadership over social housing development in the new situation; Decision No. 927/2024/QD-TTg of the Prime Minister on the Plan to implement Directive No. 34-CT/TW; Resolution No. 161/2024/QH15 on continuing to improve the effectiveness and efficiency of implementing policies and laws on real estate market management and social housing development.

The Ministry of Construction has issued a Plan to implement Decision No. 927/QD-TTg (Decision No. 1017/2024/QD-BXD) to enhance the effectiveness and efficiency of State management, innovate methods and models of management and development of social housing to attract and encourage domestic and foreign economic sectors to participate in investment, development of social housing and implement housing support policies for the subjects.

In 2024, the Ministry of Construction will coordinate with the Government Office to organize 2 conferences to remove difficulties and promote social housing development. Currently, the Government is submitting a draft Resolution on preferential capital sources for social housing development. Accordingly, it is proposed to implement a preferential package of 100,000 billion VND for social housing loans from bond capital, applicable for 5 years. The above efforts will be the premise for social housing development work nationwide to accelerate in the coming time.

In 2024, the real estate market has overcome the most difficult period.

Real estate market overcomes the most difficult period

In recent times, the Government, the Prime Minister, the Ministry of Construction, together with ministries, branches and localities, have issued many drastic instructions and implemented many synchronous solutions to remove difficulties for the real estate market. The Prime Minister's working group on removing difficulties and obstacles in implementing real estate projects has worked with localities and enterprises to listen to reports, grasp information, situations and review each specific project. From there, they exchanged, guided and answered to remove difficulties and obstacles in implementing projects.

In 2024 alone, 210 more real estate projects have had their difficulties resolved. Along with the completion of the legal system, drastic solutions from the central to local levels, and the efforts of businesses and investors, the real estate market has had positive changes, overcoming the most difficult period.

Focus on implementing Resolution No. 06-NQ/TW

In order to promptly institutionalize Resolution 06-NQ/TW with a synchronous system of legal documents, the Ministry of Construction has accelerated the appraisal of planning tasks and projects, organized the appraisal of classification and recognition of urban areas. By the end of November 2024, the country has 900 urban areas, including 2 special-class urban areas, 21 class I urban areas, 39 class II urban areas, 44 class III urban areas, and 97 class IV urban areas.

Implement the Resolutions of the Politburo, the National Assembly Standing Committee and the Government on the arrangement of administrative units at district and commune levels. In 2024, the Ministry of Construction established a working group to proactively work with 30 provinces and centrally run cities to urge the implementation of general urban plans and urban development programs; 22 administrative units, including cities and towns, have been reorganized; 59 towns in 5 provinces and cities have been proposed to be reorganized, meeting the set goals and plans.

Promote research and production of new materials

The Ministry of Construction has developed and promulgated or transferred to competent authorities to promulgate full standards, regulations, technical instructions, and technical economic norms on the treatment and use of ash, slag, and gypsum used as raw materials for the production of construction materials and in construction works according to the tasks set out in Decision No. 452/QD-TTg of the Prime Minister; Developed Standard TCVN 13754: 2023 on saline sand for concrete and mortar to ensure the requirements for using sea sand for construction works...

Strengthening administrative reform and digital transformation

In 2024, the Ministry of Construction issued Decision 926/QD-BXD, approving the Digital Transformation Project of the Construction Industry for the period 2024 - 2025, with a vision to 2030. The project aims to gradually modernize administration, make the administrative procedure settlement process transparent, and improve the quality of online public service provision in the Construction Industry.

In administrative reform, the Ministry has implemented 8/9 administrative procedures (TTHC) reaching 88%; is providing 35 online public services out of a total of 119 TTHC under the management of the Construction sector. Implementing a comprehensive connection of the Ministry's information system for handling administrative procedures with the system for monitoring and measuring the level of provision and use of online public services automatically, evaluating results in real time (EMC system).

The Ministry also piloted the application of GIS in publicizing information on construction and urban planning on the Vietnam construction and urban planning information portal.

Resolutely implement the project to streamline the apparatus

Implementing the direction of the Central Steering Committee and the Government Steering Committee to summarize Resolution 18-NQ/TW, the Ministry of Construction has urgently and actively worked with the Ministry of Transport to complete the summary report and draft the Project to merge the Ministry of Construction and the Ministry of Transport to report to the Prime Minister on time.

Source: https://kinhtedothi.vn/10-typical-characteristics-of-the-construction-industry-in-2024.html