A pillar for the construction and materials industry.

Focus on improving the infrastructure system.

Resolution 01/NQ-CP on the main tasks and solutions for implementing the socio -economic development plan and the state budget estimate for 2025 demonstrates the government's strong determination to accelerate economic recovery and growth.

In order to successfully achieve the goals and tasks of the socio-economic development plan for 2025 and the entire 5-year period from 2021 to 2025, the Government requests all levels, sectors, and localities to focus on directing and managing the country's GDP growth in 2025 to reach at least 8% and strive for double-digit growth under more favorable conditions (higher than the target set by the National Assembly of 6.5-7%, aiming for 7-7.5%), and the GRDP growth target of localities in 2025 to be at least 8-10%.

The construction materials industry is thriving due to increased infrastructure investment over the past year. Photo: Hai Linh

This includes completing a comprehensive and modern strategic infrastructure system, prioritizing key national transportation infrastructure projects, expressways, high-speed rail; inter-regional projects and major urban infrastructure, digital transformation infrastructure, etc.

Focus resources and strive to achieve the national target of having 3,000km of expressways and over 1,000km of coastal roads by 2025. Focus on removing difficulties and obstacles in the implementation of large-scale infrastructure projects; ensure the supply of raw materials, control raw material prices, and manage land use targets to accelerate progress and ensure the quality of expressway projects.

There are breakthrough, practical, and effective solutions, especially policy mechanisms, to attract investment in infrastructure projects through public-private partnerships; at the same time, report to competent authorities for approval of the principles, mechanisms, and policies to definitively resolve outstanding issues and obstacles in some investment projects under the public-private partnership method. Focus on effectively implementing the Plan for the Implementation of the Power Development Plan VIII and the Plan for mobilizing resources to implement the Political Declaration on establishing a just energy transition partnership (JETP)...

Focus on developing cultural, educational, and healthcare infrastructure, and responding to climate change. Develop agricultural and rural infrastructure to support the restructuring of the agricultural sector in conjunction with the construction of new rural areas. Prioritize critical, damaged, or potentially unsafe irrigation works, dikes, dams, and reservoirs. Continue investing in the renovation, upgrading, and construction of new fisheries infrastructure and irrigation infrastructure serving agricultural production.

 

The year 2025 still holds many potential risks for building materials businesses, especially regarding raw material prices. Coal – the main fuel in production – is expected to rise sharply (US$7.29 billion will be spent to import 60.6 million tons of coal), and electricity prices are projected to increase by 2.41-3.34% due to the implementation of the new retail electricity pricing structure. These two factors account for the largest proportion of building materials production.

Building materials expert, Master Pham Ngoc Trung

In its 2025 strategic report, SSI Research, an investment analysis and consulting center, predicts that 2025 will bring strong supporting factors after a long period of waiting and expectation for change, as Vietnam begins to enter a new era – an era of national progress. This new era also means preparing for unprecedented changes.

These include reforms that began in late 2024, such as streamlining the government apparatus and a determination to accelerate public investment in infrastructure and address outstanding issues in the real estate sector.

According to SSI Research, if successful, these three domestic factors could help boost growth in 2025. Current reforms are aimed at creating a better investment environment in Vietnam, with a vision to streamline administrative procedures and improve infrastructure efficiency.

Leveraging public investment

VinaCapital's Investment Director, Dinh Duc Minh, stated that looking back at 2024, economic growth exceeded expectations, with GDP increasing by nearly 7.1% (compared to the initial forecast of 6% in 2024). The driving force behind Vietnam's economic development in 2025 will come from domestic public investment and the government's strong commitment to infrastructure development. Accordingly, consumer goods, construction, and building materials sectors are likely to attract investment capital.

Expressways, Long Thanh Airport, the Metro in Ho Chi Minh City... were completed last year. Without the highest level of determination from the Government in every directive and action, these projects would have been difficult to put into operation.

In addition, the National Assembly has approved a growth target of 6.5-7%, striving to achieve a growth rate of 7-7.5%, and Mr. Minh hopes that Vietnam can achieve this goal.

According to SSI Research, in order to achieve double-digit GDP growth as targeted by the Prime Minister, accelerating public investment, especially infrastructure upgrades and the recovery of the real estate sector, will be the two main investment priorities in 2025.

Furthermore, supportive policies are expected to significantly boost the supply of real estate in 2025, in Hanoi, Ho Chi Minh City, and other provinces and cities. The government is working to reduce the time required for licensing new projects and resolve legal issues for existing projects. At the same time, domestic consumption, which has been significantly impacted by the prolonged stagnation of the real estate market, may need more time for consumer confidence to recover and consumption to resume.

Therefore, Vietnam's economic growth in 2025 is expected to come primarily from investment and production, rather than from consumption in the short term. Consequently, the analysis team has a more optimistic outlook on the construction, building materials, residential real estate, and information technology sectors in 2025.

Experts at ACB Securities (ACBS) believe that, along with increased public investment, businesses in the infrastructure construction, building materials sectors such as steel, cement, asphalt, logistics, residential real estate, and industrial parks are expected to benefit. For example, the North-South Expressway Phase 2 project, with a total investment of VND 146,990 billion and a length of 729km, began construction in 2023 and is expected to be substantially completed in 2025, with operation starting in 2026. Accordingly, large enterprises such as Vinaconex, Deo Ca, and CIENCO 4 have been awarded contracts, and the period of 2025-2026 is considered a "profit peak" for these companies.

In addition, several other key projects such as Long Thanh Airport, Ho Chi Minh City's Ring Road 3, and Hanoi's Ring Road 4 are also being accelerated. In particular, the North-South high-speed railway project, with a total investment of $67.3 billion, is expected to start construction in 2027 and be completed in 2035, creating a construction market worth $33.5 billion and opening up significant opportunities for businesses in the infrastructure and materials construction sectors.

According to experts, public investment has made recent progress. Several large-scale projects are being added to the public investment list, and the BT (build-transfer) model will be relaunched in 2025. This is crucial to attracting private sector participation in infrastructure projects. Streamlining the government apparatus will reduce recurring government spending and help increase public investment capital.

Source: https://kinhtedothi.vn/dau-tu-co-so-ha-tang-diem-tua-cho-nganh-xay-dung-vat-lieu.html