Macro Strategic Reports |

"Stocks benefiting from public investment" portfolio

22/06/2023

Summary

The global economic situation has been unstable, with several banks going bankrupt in a short period of time. Inflation rates remain high while consumer demand for goods is weakening. Tight monetary policies implemented by central banks are expected to have a negative impact on the global economy. Additionally, the ongoing Russian-Ukrainian conflict poses a threat to the recovery of the global economy.
The world economic downturn has also had an impact on the domestic market. In the first quarter of 2023, the GDP increased by 3.2% YoY, falling short of the 6.0% target set for the year. The General Statistics Office predicts that public investment will be a major driver of economic growth in the face of global weakness. A 1% increase in public investment capital is expected to contribute to a 0.6% increase in GDP. As a result, the National Assembly approved the public investment plan in 2023 with a total capital of over VND 700,000 billion, an increase of 25% YoY.
To take advantage of this situation, SSV has launched a portfolio of stocks that are expected to benefit from public investment. The companies selected in the list are expected to benefit strongly from the state's infrastructure investment projects. These companies mainly belong to the building materials and construction sectors.

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