Construction & Property Development

Vietnam - Construction Materials Association proposes tax cuts 

Source: Asia Pulse, 07 May 2010

The Vietnam Construction Materials Association has proposed that the Government consider a 5% reduction in Value Added Tax (VAT) from the current 10% on building materials to help the industry counter increased input costs. The association said that in the first quarter of 2010, the prices of building industry materials including sand, stone and cement have risen significantly along with price surges of electricity, petrol and coal.

The industry's exports in 2010 are estimated to reach roughly US$500 million and the figure is expected to increase to US$1 billion by 2015. The country's building material sector has grown strongly over the past few years, with cement currently meeting domestic demand. Production output of construction glass, tiles and sanitary ware also reached roughly 107 million square metres, 300 million square metres and 3.2 million units respectively yearly.

China - Asset investment growth in the building materials industry

Source: Asia Pulse, 07 May 2010

According to data released by the Ministry of Industry and Information Technology (MIIT), the fixed asset investment in China's building material industry increased 36.3% year on year to RMB84 billion (US$12.3 billion) in the first quarter, with the growth rate down 30% from the same period last year.

Specifically, the growth of fixed asset investment in cement industry and brick, tile and block industry fell 93% and 52% respectively during the first quarter. In contrast, the glass sheet industry and the sanitary ceramic manufacturing industry saw high-speed growth in fixed asset investment, both exceeding 110% year on year.

Australia - Construction growth forecast to grow through 2011

Source: The Sydney Morning Herald, 15 May 2010

According to the latest Australian Industry Group/Australian Constructors Association building outlook survey, total turnover from construction work will lift by 4.1% this calendar year, up from 2.7% in 2009, and by 7.4% in 2011. The survey of Australia's leading construction companies predicts engineering works will lead the way, with growth of 6.5% forecast this year and 8.9% next year.

The forecasts were made after the release of data that showed dwelling approvals rose by 15.3% in March, with most of the strength centred on a surge in private-sector apartments. Dwelling approvals are now up 51.6% on a year ago. Non-residential work is expected to begin to recover next year and the apartment building sector is expected to strengthen by 15%, although this is from a weak base, with companies predicting a fall of 22.7% this year.

Visit our Construction & Property Development practice