State projects set to boost 2022 construction income
The domestic construction market is expected to grow by 6% to 850 billion baht next year, due to state infrastructure development projects and better economic prospects thanks to the speedy rollout of Covid-19 vaccinations, says Civil Engineering Plc.
In addition to the government's investments and its ongoing efforts to inoculate the population, the reopening of the country since Nov 1 is also seen as a positive factor.
The construction sector has the potential to grow because the government is boosting the domestic economy through new infrastructure development projects in many areas, said Chaiwat Utaiwan, chairman of the Civil board.
"The government is speeding up mega-investment projects in the Eastern Economic Corridor [EEC]," he said.
A high-speed rail system linking three airports and the third-phase development of Laem Chabang and Map Ta Phut deep-sea ports are among the key projects in the EEC area, which covers parts of Chachoengsao, Chon Buri and Rayong on the eastern coast.
The government wants to develop the EEC area into Thailand's high-tech industrial hub, featuring 12 targeted S-curve industries.
Other developments like highway projects and the Thailand-China high-speed railway will also help drive the construction sector, said Mr Chaiwat.
Civil was awarded state projects under Public Private Partnership contracts. They include the cross-border high-speed train project and an intercity motorway project linking Ayutthaya's Bang Pa-in district with Nakhon Ratchasima in the northeast.
The company expects the state investments to continue to play a key role in driving the construction sector as private investments are expected to grow more slowly.
Civil also believes urbanisation in big provinces, which will be seen more clearly next year due to economic recovery, will be good for construction companies.
Better economic prospects mean the company is planning to raise funds through an initial public offering on the Stock Exchange of Thailand, according to Piyadit Atsavasirisuk, chief executive of Civil.