Myanmar’s Construction industry worth US$ 13.5 bn by 2020

Myanmar’s Construction industry worth US$ 13.5 bn by 2020

Myanmar’s Construction industry worth US$ 13.5 bn by 2020
June 23
11:51 2016

A report by Timetric Construction Intelligence Center (CIC) has found that over the next five years Myanmar’s construction industry is to grow at rate of 10.37% over five years. In 2015 the industry’s value was worth Ks 9 trillion (US$ 8.2bn) and expected to climb to Ks 15 trillion (US$ 13.5bn) in 2020, according to the press release.

The improvement of the country’s economic conditions depends on government investments in residential, energy and utilities, and public infrastructure projects, as well as a rise in foreign investments, according to the report.

Danny Richards, Lead Economist at Timetric’s CIC said in release, “Government flagship programs” such as the National Export Strategy (NES), and National Electrification Plan will Promote industry growth over the next five years, adding, “ However, the financing environment and lack of transparency in the tendering process will prevent the construction industry from expanding at a faster pace”.

Residential construction was the Largest market in Myanmar’s construction industry over the last five years, accounting for 49.9% of the industry value in 2015. The market rose from (US$ 3.6bn) in 2011 to value (US$ 5bn) in 2015.

The growth was driven by government investments in affordable housing programs that are being undertaken around the country apart of the governments second National Development Program.

During the next couple of years the market is forecast to remain the largest in the industry to value Ks11 trillion (US$ 9.7bn) in2020.

Infrastructure construction was the second-largest market in the construction industry during the review period, accounting for 19.4% of the industry’s total value in 2015. The market rose from Ks 2 trillion (US$1.3bn) in 2011 to Ks 3 trillion (US$ 1.9bn) in 2015.

Over the forecast period infrastructure constructions is expected to maintain its position supported by ongoing government efforts to improve this segment.

The government will invest Ks 28 trillion (US$ 26.8bn) under the National Transport Master Plan, allocating funds to road, rail, water and air transportation projects until 2030. Consequently , infrastructure construction is expected to reach Ks 6 trillion (US$ 4.2bn) in 2020.

Credit To: The Global New Light of Myanmar


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