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Vietnam Infrastructure Report Q2 2014

Vietnam Infrastructure Market: New market information published


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2014-02-10 03:17:02 - Vietnam Infrastructure Report Q2 2014 - a new market research report on companiesandmarkets.com

Vietnam´s construction sector is in an upward cyclical phase, as evidenced by a real growth rate of 5.3% y-o-y in the first nine months of 2013. We believe this could continue in 2014 and are maintaining our growth forecasts of 5.8% for 2014. Easy monetary conditions and greater investment interest from foreign sources in Vietnam´s construction sector is likely to support growth for the year.

Furthermore, the government continues its efforts to restructure state-owned enterprises and improve its business environment, both of which would level the playing field, free up public funds and improve profitability, and help to attract additional investment for infrastructure development over the coming years.

The major developments in Vietnam´s infrastructure sector are:

- In November 2013, the Vietnamese government

 

 

approved an amendment in its Land Law (see ´Revised Land Law A Major Step In Tackling Corruption´, December 9 2013). The revised legislation, which will come into effect on July 1 2014, is aimed at limiting land disputes by prohibiting the government from appropriating land for socio-economic development unless such projects have been approved by the prime minister and the Vietnamese parliament. We believe this revision is a major step in strengthening the regulatory framework and will increase transparency for projects that are implemented under the direction of the provincial government. It would also help reduce the risk of project delays which have been caused by long and costly disputes over compensation.

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