Global Integration Business Consultants project - gibc

Executive
Summary
U.S. CONSTRUCTION SECTOR
� Construction activity can be divided into 3 phases: pre -construction,
construction and post-construction. These 3 phases are associated with the
following outlays:
� Soft costs (architecture, engineering, marketing, legal, management), site
development.
� Hard costs (actual construction costs such as labor and materials)
� Building Operations (maintenance, repairs, utilities and management)
� Sector has a multiplier effect on the economy - final economic impact of one
dollar spent in the economy is multiplied several times over by a given
factor.
� For the US, the multiplier factor is estimated to be 3.19. This is because of
inter-industry connections between the construction, manufacturing and retail
sectors.
The economic impact of pre-construction and post-constructions phases as value
generators are often overlooked and undervalued. The phases in Vietnam‟s
construction sector and the multiplier factor estimate can be used to determine
relation between the construction and real estate sector in Vietnam.
Real Estate
Overview
U.S.
Market
China
Market
Vietnam
Market