Timetric’s Construction Intelligence Center (CIC) has released a report looking at the potential investment in the Asia Pacific Region, which finds that over US$1 trillion is set to be invested in the region’s major economies within the next few years.
India alone has projects valued at US$411 billion, putting it firmly in the lead with China following at US$200 billion of planned investment and Indonesia in third place with US$124 billion. Meanwhile, smaller markets are increasing their level of investment – for example, Vietnam has US$56 billion in planned investment in industrial building projects.
Of the US$1.08 trillion of industrial projects planned or underway in the 15 APAC countries studied, Timetric estimates that the metal and material production plants sector will dominate with projects worth US$446 billion, followed by manufacturing plants with US$314 billion. The 15 countries of Australia, China, India, Indonesia, Kazakhstan, Malaysia, Mongolia, Pakistan, Philippines, South Korea, Taiwan, Thailand, Turkmenistan, Uzbekistan and Vietnam have over 70% of projects worth US$756 billion at pre-construction stage.
“While the developed Asia-Pacific economies tend to invest more in industrial buildings, the less industrialised countries in the Asia Pacific region are exhibiting the highest growth in industrial construction from a low base. We estimate that countries like Vietnam, Indonesia, Mongolia and Turkmenistan are forecast for GDP growth of 6% or more by 2019. This is being manifested in investment in mineral extraction, processing or manufacturing to drive these developing economies,” says Neil Martin, Manager at Timetric CIC.
The largest value project tracked by CIC is the US$50 billion Vung Ang Economic Zone in Vietnam, which is already underway and includes the huge Ha-Tinh Steel Complex and Son Duong Port project. Other major projects in the region are the US$14.7 billion Pyeongtaek Chip Production Plant in South Korea which is planned to start producing semi-conductors in 2015, and the US$12 billion Sino Iron Ore Mine in Australia, which is already in execution and is set to be the world’s biggest magnetite iron ore mine when fully operational.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/16012015/new-report-points-to-positive-outlook-for-asia-pacific-149/