Macro Strategic Reports | ["Stocks benefiting from public investment" Portfolio] - Accelerating public investment in 2025, ready for breakthrough

["Stocks benefiting from public investment" Portfolio] - Accelerating public investment in 2025, ready for breakthrough

02/07/2025

Summary

With the 8% GDP growth target in 2025, the Government encounters significant challenges amid escalating global trade tensions and rising geopolitical uncertainties. In a context where external conditions present various risks, public investment is identified as one of the key pillars driving economic growth.
In 2025, the Government raised its public investment plan to approximately VND 875 trillion (up from VND 790.7 trillion previously) (+37.7% YoY). This is expected to serve as a major growth engine, particularly benefiting stocks related to public investment. As of May 31, 2025, disbursement reached about VND 199.3 trillion (+38% YoY), equivalent to 24.1% of the full-year target.
We expect that the acceleration of public investment in 2025 will provide support for construction and industrial park-related stocks, which are set to benefit from enhanced infrastructure development. We add an industrial park stock (KBC) due to its strong growth outlook after resolving recent legal obstacles. We continue to hold a positive long-term view on the industrial park stock group, despite the ongoing trade war dynamics. Given Vietnam’s favorable geographical location and infrastructure expansion, we expect Vietnam to attract FDI inflows in the long term. We also eliminate C4G due to the business result of the company was not as expected.

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