Boosting public investment in the second half of 2023


  • According to the report of the Ministry of Finance, the estimated disbursement of public investment from the beginning of the year to April 30, 2023 was VND 110,633 billion (+16% YoY), reaching 14.66% of the plan. However, the disbursement rate compared to the plan was lower than 17.09% of the same period in 2022. According to the Ministry of Finance, the reason for the lower disbursement rate was due to the fact that the ministries, central agencies and localities were focusing on allocating capital plans for projects; completing investment procedures, focusing on bidding for selection of construction contractors.
  • After the bidding process in Q1/2023, the disbursement value of public investment is expected to increase sharply in the last 8 months of the year when the projects start construction. Besides, with the target of 90% disbursement in 2023, we estimate that the disbursement value of the remaining 8 months will be at least VND 591,359 billion, up +33% compared to the last 8 months of 2022.
  • With the above trend, companies directly involved in the construction of key infrastructure projects such as North-South Expressway Phases 1 and 2, Long Thanh Airport phase 1, Ring Road 3 and 4 are the strongest beneficiaries. Direct beneficiaries include construction material companies (including PLC, HPG) and companies directly involved in the construction process of projects (including VCG, LCG, HHV, C4G, FCN, CTD).


Tien Le

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