MOC has announced the 10 most outstanding features of the construction sector in 2024. The year marked a milestone in market growth with a growth rate of 7.8-8.2 percent, the highest since 2020 and higher than the target set by the government in Resolution 01 (6.4-7.3 percent).

This growth rate is the highest the construction sector has achieved since 2020, which serves as a driving force for the GDP growth of the economy. The urbanization rate reached 44.3 percent, exceeding the National Assembly’s target of 43.7 percent. The construction sector also met two other targets set by the government – the 18 percent wastewater collection and the 26.5 sq m of floor area per head.

Assessing the real estate market in 2024, MOC said many solutions have been implemented to remove obstacles from the market. 

"The real estate market has seen positive changes, overcoming the most challenging period and setting the momentum for recovery and development," MOC stated.

Another highlight of last year was the attention on social housing development. On May 24, the Secretariat issued Directive 34 on strengthening the Party's leadership over social housing development under new conditions.

MOC has submitted to the government a draft resolution on preferential capital arrangement for social housing development. This draft includes a proposal for a preferential loan package of VND100 trillion for social housing loans, sourced from bond issuance, applicable for five years. These efforts will lay the groundwork for accelerating social housing development across the country.

Apparatus streamlining

Vigorous implementation of Resolution 18 and the plan on reorganizing and streamlining the apparatus was also marked as one of the construction sector's 10 highlights in 2024.

MOC has worked actively with Ministry of Transport (MOT) to complete the report summarizing the Resolution 18 implementation and the draft scheme on merging MOC and MOT. It is expected that after reorganization, there will be 24-27 units remaining, which means a decrease of 35-41 of units.

The year 2024 also saw significant changes in researching, producing, supplying, and utilizing green materials, new materials, and alternative materials in construction projects. The government has laid down policies to promote the development of green materials.

With appropriate policies, many types of green materials and new materials have been increasingly researched and developed, helping increase the number of green buildings in Vietnam. In 2022, there were about 200 green buildings. The figure was 300 in 2023, and over 500 green buildings in 2024.

Also in 2024, the National Assembly approved of the Law on Urban and Rural Planning. The perfecting of institutional regime continued to be a highlight of the construction sector.

Furthermore, the proactive decentralization of authority in state management and actions to resolve obstacles for national key projects and works, along with the continued implementation of Resolution 06, were deemed highlights by MOC this past year.

Merger

MOT and MOC will merge to form a new ministry with the number of units decreasing by 41 percent, from 42 units to 24-27.

Do Thi Phong Lan, deputy director of the Department of Organization and Personnel, confirmed at the press conference on merging the two ministries held on December 27 that the merger plan has been completed. The plan will be sent to the Ministry of Justice for appraisal and to the Ministry of Home Affairs (MHA) which will analyze reports from ministries before reporting to the government’s steering committee on apparatus streamlining.

Regarding the name of the new ministry after the merger, she said the two ministries have agreed to call it ‘the Ministry of Construction and Transport’.

Regarding the structure of the new ministry, there are 42 units, including 19 from MOC and 23 from MOT. After the merger, the figure will reduce to 25-27, including six general staff units, 13-16 professional units and five public non-business units.

As for the implementation of Resolution 18, MOC affirmed that the ministry has been implementing the resolution resolutely with thoroughness and a clear awareness of the importance and influence of the resolution.

“Though the functions and tasks assigned to MOC have increased and the assigned staffing quota is very limited, MOC still has strictly implemented the streamlining of the apparatus, maintaining a compact, efficient and effective apparatus structure,” Lan said.

Hong Khanh