Mr Le Viet Hai discussed ways to advance the construction industry.

DNHN - Mr Le Viet Hai, chairman of the Association of Construction and Building Materials of Ho Chi Minh City, stated at a recent meeting between the Prime Minister and business leaders that a national strategy is required for the construction industry

After three decades of retrospection, Vietnam's construction industry has made significant progress through innovation. This development can be described as miraculous, and it occurred in a unique historical context that cannot be found in any other nation.

The construction industry makes a substantial contribution to the nation's economy...

Vietnam has mastered the technology by capitalising on the advantages of latecomers to seize the opportunity of the construction industry's explosive growth after fifty years of stagnation. Indeed, it was a very advantageous opportunity. From a subcontractor to a joint venture partner, Vietnamese construction enterprises have quickly matured and are now capable of being general contractors for large-scale projects with high technical requirements, such as the Son La Hydropower Plant, Bai Chay Bridge, Deo Ca Tunnel, Hoa Phat Steel Factory, Vinfast Automobile Factory, Lego Factory, Landmark 81 Building, Saigon Centre Building, Vietinbank Tower and Empire City.

Vietnam's construction industry has not followed the normal development path that can be described as a leap when built on the most modern tools and systems; however, efforts have been made to learn and integrate the quintessence of science and technology in the construction industry from Korea, Japan, China, and many other Asian countries. Europe, America, Australia,…

Internal contractors with a team of highly qualified engineers have replaced foreign contractors in the majority of large-scale projects with stringent technical requirements over the past decade. Domestic construction companies have nearly monopolised the domestic market and provided the economy with a significant competitive advantage by significantly reducing investment rates for numerous projects at significantly lower costs than other construction companies. international general contractor. In the 1990s of the previous century, for instance, buildings constructed by foreign contractors cost no less than $2,000/m2; however, as the cost of labour and materials has risen, the construction cost of these buildings has also risen. Only about $1,000 per square metre is charged for Grade A properties.

In addition, our civil engineering workforce is three times the global average, with 9,000 civil engineers per 1 million inhabitants compared to 3,000 globally. There are currently 67 universities with construction-related specialised departments, including civil engineering, bridges and roads, irrigation, architects, interior design, project management, construction economics,... This is an advantage for Vietnam's construction industry, which is in danger of falling behind as the young world turns away from the construction industry and many developed nations lack this human resource.

Since 2015, few foreign contractors have participated in the domestic construction market; we have mastered the market but lost the opportunity to learn. Meanwhile, Vietnam's research and development efforts remain weak. If this circumstance continues, we will fall behind. Vietnam will once again lose its domestic market to international contractors in the absence of a suitable strategy.

In recent years, the negative fluctuations of the global economy and Vietnam, in particular, have exacerbated the difficulty of already challenging construction projects. Since 2017, construction permits have been issued for very few urban housing projects, while the human resource in the industry has continued to increase, the number of jobs has not increased and has declined sharply.

As a result of underemployment creating an imbalance between supply and demand, contractors have been severely harmed; the construction market has become extremely competitive, rendering construction businesses unprofitable.

In recent years, the slow payment of investors has become increasingly serious, causing many contractors to weaken and suffer because they are unable to maintain production resources due to insufficient cash flow. Construction and the production and distribution of building materials fail or are in danger of failing.

It is necessary to have a national strategy for the construction industry to become a spearhead economic sector

Currently, the global construction market is valued at approximately 13.5 trillion USD, and it is anticipated that by 2030 it will reach approximately 19 trillion USD. However, in Vietnam over the past three years, the total output of the construction industry was only approximately 80 billion USD, which is only about 0.6% of the global market size. If successful in exploiting this market, construction will become a leading economic sector of the country, capturing approximately 1.8% of this market.

Developing the construction industry for the global market not only brings the aforementioned economic benefits but also aids in resolving the problem of a severe shortage of highly qualified human resources in the industry.

Developing the construction industry into a global market is also an effective method for enhancing the competitiveness of Vietnam's construction industry, ensuring that we always have the opportunity to acquire and integrate the best of the world. This is an essential strategic factor that enables us to maintain sufficient strength to defend the domestic market.

For the construction industry to conquer foreign markets and become a linchpin sector of the nation's economy, we must have solutions to nurture and continuously improve the construction industry.

The recommended solutions include seven strategic tasks of Vietnam's construction industry that I presented in the book "Golden Decade-New History" published just three years ago, in my opinion. value is still intact.

We must also recognise that this is a once-in-a-lifetime opportunity; if we delay, we will not be able to succeed because the golden population period with abundant human resources will quickly pass. ends in 2034, and this opportunity will never again be available. If Vietnam misses this opportunity, it will be difficult to escape the middle-income trap.

We are well aware of the roles and responsibilities of construction companies in implementing this strategy, and we will make every effort to implement it successfully alongside the government, our colleagues, and our supply chains. strategic objectives listed above.

In addition, as Vice President of the Vietnam Corporate Culture Development Association and based on the experience of Hoa Binh Construction Group, I would like to point out that to survive any crisis, quickly restore production and business, and realise the aspiration to reach a sustainable international level, the Vietnamese business community in general and construction enterprises in particular, must pay close attention to and implement corporate culture.

It is necessary to define corporate culture; as directed by Prime Minister Pham Minh Chinh, business culture is a breakthrough solution.

Le Viet Hai - Chairman of Ho Chi Minh City Association of Construction and Building Materials, Chairman of the Board of Directors of Hoa Binh Construction Group