Vietnam’s Construction Boom: Promise and Pitfalls in Urbanisation Surge

In the throes of rapid urbanisation, Vietnam’s construction industry is a double-edged sword, filled with promise and challenges. The demand for infrastructure projects has surged, with construction investment accounting for a substantial 30% of GDP annually. Success stories abound, showcasing the nation’s transformative journey and renewal. Yet, the sector is also littered with subpar projects that fail to meet standards, leading to severe losses. The quality of construction is not just an industry concern but a matter of national economic development and public safety.

The crux of the issue lies in management and supervision. Architect Trần Tuấn Anh emphasizes the potential of the construction sector but also highlights the economic downturn’s impact on growth and the skilled worker shortage. Cumbersome licensing processes, inconsistent regulations, and the struggle to match infrastructure capacity with development needs exacerbate the challenges. Anh calls for an improved legal framework, investment in research and technology, and stricter penalties for violations.

Looking abroad, many countries offer lessons in strict construction management. China’s quality management system, implemented since the 1980s, enforces rigorous standards and certifications. Singapore’s approach mandates compliance with various requirements before approval, with independent supervisors overseeing projects. Japan’s comprehensive legal framework and direct government supervision set a high bar for quality assurance.

Yet, Vietnam’s construction management faces inefficiencies and mismanagement, leading to wasted resources. Overlapping legal documents, inconsistent procedures, and a fragmented national construction database hinder progress. Ninh Viết Định, an arbitrator at VIAC, stresses the need for effective state management to optimize resource allocation and stimulate economic activity.

To adapt to international practices, Nguyễn Thế Điệp, president of the Hà Nội Real Estate Club, advocates for learning from foreign experiences and adopting relevant management models. Anh suggests decentralizing responsibilities to local authorities and refining construction standards and regulations. Closer coordination among law enforcement agencies and stronger anti-corruption measures are also crucial.

The future of Vietnam’s construction industry hangs in the balance. Will it rise to the challenge, adopting international best practices and strengthening state management? Or will it stumble under the weight of inefficiencies and poor quality projects? The path forward demands not just policy overhauls but a collective commitment to transparency, fairness, and compliance. The stakes are high, with the sector’s success tied to the nation’s economic growth and public well-being. The industry’s clarion call is clear: change is not an option, but a necessity for sustainable development.

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