INFRASTRUCTURE CONSTRUCTION SECTOR: EXPECTED TO BREAK THROUGH

In 2024, the disbursement of public investment was relatively slow. In 11M2024, the public investment disbursement reached VND495.9 tn, (+1.8% YoY, and achieving 64.3% of the target). Specifically, the disbursement for the transportation sector projects amounted to VND62.748 tn, (-14.1% YoY, and achieving 85.6% of the target).

However, we observe that the Government is concentrating resources on addressing legal obstacles, alongside expediting the completion of key infrastructure projects such as the North-South Expressway (Phase 2), Long Thanh International Airport, and the North-South Railway.

According to the Resolution of the 10th Central Conference, 13th tenure, the Government’s vision for Vietnam’s GDP growth rate for the 2026-2030 period is set at 7.5%-8.5% per year. We believe that a key factor in achieving this ambitious GDP growth target will largely stem from robust public investment disbursements.

Therefore, we anticipate that public investment will be swiftly accelerated from the beginning of 2025 as new laws come into effect. Additionally, during the 2026-2030 period, the Government will continue to vigorously implement a series of key projects.

Beneficiary sectors: steel, cement, asphalt, infrastructure construction, logistics, civil real estate and industrial parks.

Recommended Stocks: HPG, PLC, VLB, VCG, HHV.