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The construction sector will grow satisfactory in 2018

According to the Sector Prospectus of 2018, BIDV Securities Company (BSC) expects constructions sector growth to remain positive in 2018, but the growth rate will begin to slow down.

Meanwhile, DAG Profile uPVC has occupied up to 40% market share in the Northan and 25% market share nationwide.
Meanwhile, DAG Profile uPVC has occupied up to 40% market share in the Northan and 25% market share nationwide.

Specifically, the infrastructure construction market is forecasted to continue to grow well thanks to the expected FDI inflows.

BSC expects 2018 that the construction sector will benefit from FDI will continue to grow strongly thanks to Vietnam is still a low labor cost in the region, the incentives, support of the government following the success of the APEC agreement.

In addition, the BSC noted that FDI inflows recorded record levels of more than $64 billion in 2008, more than three times the size of the 2007 APEC summit.

Construction growth is expected to remain positive in 2018, but growth rates will start to slow. As forecasted by BMI, the constructions sector will maintain a real growth rate of 9.63% in 2018 and reach an average of 7.8% in 2018-2021, mainly due to investment growth. of the private and foreign sectors.

BSC believes that the residential constructions market will slow down as the growth rate of the market will slow down as the growth rate of the real estate sector.

BSC believes that the residential construction market will slow down as the growth rate of the real estate sector, especially residential real estate, will slow down compared to 2017.

BSC found that the gross profit margin in the construction sector has tended to decrease from Q2/2017 (except for CLL and CTI due to the effect of a proportion of other segments). It is difficult for these companies to achieve high-profit margins.

As a réult, BSC forecasts that gross profit margin in Construction in 2018 will be lower than 2017 average. This is due to: Then enterprises will have to move the middle and popular segment, compete with other contractors; The price of raw materials of iron, steel,  … Tended to increase strongly in the past; The tendency is to push up the proportion in the mid-end housing segment-the lower-middle-income segment and the lower-margin industry.

However, BSC still optimistic about the construction industry based on the factor: Civil constructions enterprises with the contact infrastructure development are stable in the long term and the amount of FDI into Vietnam is expected to increase sharply in 2018

According to Cafe F.

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