Construction activity in ASEAN to grow rapidly
Published by Lucy Stewardson,
Prepared by leading data and analytics company GlobalData, a recent white paper has found that the construction output of ASEAN member states will increase by an average of 6% per year from now until 2022. The white paper was prepared for the the region's construction, infrastructure and concrete tradeshows, INTERMANT ASEAN 2018 and Concrete Asia 2018, both of which will be held in September of this year.
“The Southeast Asia region continues to develop at a rapid pace, with economic growth projected to reach an annual average rate of 5.1% during 2018 - 2022, the fastest among all global regions, and an acceleration from the healthy rate of 4.8% recorded in the past five years,” said Danny Richards, GlobalData’s Lead Economist for Construction Industry. “Much of this growth is being driven by investment in new infrastructure, while increasing domestic demand is driving the expansion in construction of buildings across the residential and non-residential sectors."
“The region’s construction industry as a whole will grow by 6.1%,” Richards continued. “This is marginally behind the projected growth of 6.5% in the thriving emerging markets in the Middle East and Africa, but the ASEAN region presents investors and developers with a lower level of risk of projects being put on hold or cancelled, according to GlobalData’s Construction Risk Index."
“Reforms to encourage Public Private Partnerships (PPPs) are almost universal across the ASEAN region. The Philippines, Myanmar, Laos and Vietnam have undergone reforms to create more accessible markets for private sector investment in construction through PPPs. Land ownership is another area that is under reform. Once a notoriously difficult process, acquiring land in Indonisia is now much fairer and transparent. Vietnam has also implemented an initiative in which foreign investors are allowed to acquire land and hold a majority stake in a commercial or residential project."
“According to GlobalData, the combined value of mega-projects (with a minimum value of US$25 million) across ASEAN stands at US$2.9 trillion. The region provides huge opportunities with respect to a large volume of early stage projects. Just under US$1.5 trillion of projects are currently in the planning and pre-planning stages, suggesting significant construction spend is to occur for some time.”
Read the article online at: https://www.worldcement.com/asia-pacific-rim/30082018/construction-activity-in-asean-to-grow-rapidly/
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