"Twelfth Five-Year" Investment Increases Continued Benefit of Construction Industry

2010 is the last year of the “Eleventh Five-Year Plan”. It is also the year of planning for the “Twelfth Five-Year Plan”. How will the direction of the industry develop in the future? This is a topic that is of great concern to construction entrepreneurs and related industries. Therefore, the 10th 21st Century Chinese Construction Entrepreneur Forum invited Zhang Hanya, president of the China Investment Association, to look forward to the “12th Five-Year Plan” trend of China's construction market.

Zhang Hanya said in his speech that during the 12th Five-Year Plan period, the investment role will generally be strengthened. After more than 20 years of construction, the number of projects will be relatively reduced, investment will decline, and economic promotion will also be reduced. Among them, Shanghai, Zhejiang, Guangdong and other provinces and cities have less and less growth, and even Shanghai has a negative growth. Therefore, the eastern region has basically been satisfied. Of course, the Midwest is still developing. During the “12th Five-Year Plan” period, a large amount of infrastructure in the central and western regions will be built. Therefore, speaking from the whole, there is a certain impact on investment, but it will not drop a lot.

Therefore, Zhang Hanya is optimistic about the development of the "Twelfth Five-Year Plan" construction industry. He said that China's construction industry has achieved rapid development in the 21st century. In 2001, the total output value of the construction industry was only 593.1 billion, and by 2009 it had reached more than 2,000 billion, which was a three-fold increase. The growth rate of the construction industry reached 16% in 2005. Although it was slightly lower in 2008, it reached 18.2% last year. Industrial growth rates in the same industry as the construction industry are higher in the first five years than in the construction industry. However, since 2004, the construction industry has exceeded the industrial growth rate. In addition, the proportion of the construction industry in GDP has also continuously increased, reaching over 6% in the previous year and the previous year. The rapid economic development has brought the construction industry into a golden period of development. Zhang Hanya predicted that during the period of the 12th Five-Year Plan, investment will increase by more than 20%. According to statistics, more than 60% of the total investment is in construction and installation, and machinery and equipment account for only 20%. It should be said that the construction industry is closely related to investment. With the increase of investment, the construction industry is more active because investment development actually requires the construction industry to implement it.

In response to the changes in the current investment structure, Zhang Hanya believes that this actually requires a corresponding change in the construction content of the construction industry. As the construction industry itself, the industry itself needs to change the mode of economic growth, but also to make structural adjustments. This is also the theme of this forum - economic transformation. This requires us to complete the goals of energy-saving buildings in accordance with the national requirements for energy-saving and emission reduction. Secondly, in order to promote the transformation of the economic model, construction companies also need to pay more attention to technology and management innovation. On the one hand, they require the support of human technology. On the other hand, construction companies should continue to develop.

In his speech at the forum, Zhang Hanya also emphasized that industry associations should assume greater responsibilities. He suggested that in order for the construction industry to achieve greater development space, industry associations should make more contributions in market reorganization and corporate rights.

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