The Ministry of Construction announced that in 2024, the construction sector’s gross domestic product (GDP) reached 7.8–8.2%, surpassing the annual plan (set at 6.4-7.3%) and marking the highest result since 2020; the urbanization rate nationwide reached 44.3%; the proportion of the urban population provided with clean water through centralized systems reached 94%; the rate of wastewater collection and treatment was 18%; and the average housing area nationwide reached 26.5 sq. m per person.
The number of completed social housing units in 2024 is estimated at 21,000, accounting for over 16% of the total plan of 130,000 units.
According to a compilation of data from local authorities, from 2021 to the present, there have been 644 social housing projects implemented nationwide, with a scale of 580,109 units. Of these, 96 projects with 57,652 units have been completed; construction has commenced on 133 projects with 110,217 units; and 415 projects with 412,240 units have been approved in principle for investment.
Regarding the VND 120 trillion support package, 16 projects have signed loan agreements with a total commitment of VND 4,200 billion and outstanding loans of VND 1,727 billion.
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Results of the Construction Sector’s Tasks in 2024
Source: Ministry of Construction
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Additionally, the output of some key construction materials in 2024 is as follows: cement production reached approximately 91 million tons, a 2% increase compared to 2023; ceramic tiles reached about 450 million sq. m, a 15% increase; sanitary ware reached nearly 14.5 million units, a 15% increase; construction glass reached about 147 million sq. m, a 16% decrease; lime production was 2.2 million tons, a 5% decrease; and decorative stone reached about 11 million sq. m.
Furthermore, an assessment of the production and business performance of enterprises under the Ministry from the beginning of the year revealed that the real estate and construction materials market is still facing challenges, with fluctuations in material and fuel prices, rising foreign exchange rates, and intense competition among enterprises directly impacting the business results of construction companies.
Consequently, the total production and business value of the general corporations is estimated at over VND 54,587 billion, equivalent to 95% of the 2024 plan and 8% lower than the 2023 performance. The corporations’ revenue is estimated at nearly VND 52,285 billion, equivalent to 98% of the plan and 4% lower than the previous year. However, the corporations’ profit exceeded expectations, with an estimated profit of over VND 652 billion, far surpassing the planned loss of over VND 4 billion.
Based on the positive results achieved in 2024 and previous years, the Ministry of Construction has set targets and directions for 2025, including a nationwide urbanization rate of at least 45%; 95% of the urban population to have access to clean water through centralized systems; a 15% reduction in clean water loss and leakage in cities; an 18.5% rate of urban wastewater collection and treatment meeting national technical standards; an average housing area of 27 sq. m per person; and the completion of over 100,000 social housing units.
At the same time, the Ministry of Construction will continue to focus on drafting laws and ordinances in the law and ordinance-making program for 2025, as well as the government and prime minister’s 2025 work programs and the Ministry of Construction’s program for building legal documents and schemes. The Ministry will also work on the formulation of detailed regulations for laws with a deadline for submission in 2025 and documents from the 2024 work program that have been postponed to 2025.
Minister Nguyen Thanh Nghi stated that 2025 is a crucial year for achieving the goals set for the 2021-2025 period. Therefore, the entire construction sector strives to accomplish the targets set by the Government. In particular, units under the Ministry will focus on organizational restructuring as a top priority, as well as legislative development and improvement. They will also strengthen the inspection of the implementation of mechanisms and policies, making timely adjustments and supplements to meet practical demands.
The Minister also requested that local authorities pay attention to land allocation and work to remove obstacles to promote social housing development, worker housing, and expedited programs to support housing for people with meritorious services. Close coordination with the Ministry of Construction is essential in implementing tasks related to the construction sector.
Affordable Housing Development: Falling Short of the 130,000 Unit Target for 2024
As of December 14, 2024, only 36 out of 63 provincial People’s Committees have published documents on their electronic portals, announcing projects that meet the eligibility criteria for preferential loans from the 120,000 billion VND program.
“Government Subsidizes 20% of Infrastructure Costs for Social Housing Projects in Dong Nai Province”
Social housing projects, accommodation for armed forces, and worker dormitories in industrial parks in the province of Dong Nai will benefit from a 20% funding boost for the construction of technical infrastructure.
Housing for All: A Call to Action for 3,800 Social Housing Units in Ho Chi Minh City
The vibrant city of Ho Chi Minh is gearing up to boost investments in seven land projects, spanning over 27 hectares. With a vision to construct more than 3,800 social housing units, the city is taking proactive steps to cater to the housing needs of its growing population. This initiative underscores the city’s commitment to providing affordable and quality living options for its residents, ensuring that everyone has a chance to call Ho Chi Minh City their home.
The Housing Prospect: 70,000 Social Homes
With the support and collaboration of businesses, Ho Chi Minh City has the opportunity to meet its social housing development targets by 2030. This ambitious goal is within reach, and with the right strategies and partnerships, the city can provide much-needed affordable housing for its residents, creating a brighter and more inclusive future for all.
Why Aren’t Buyers Willing to Invest in Real Estate?
“Housing prices are a significant barrier for prospective homeowners, despite the increasing demand for housing and favorable loan interest rates.” said Dr. Can Van Luc, Member of the Monetary and Financial Policy Advisory Council.
