Public investment stocks are even more attractive

Public investment stocks are even more attractive

Your browser does not support the audio element. The disbursement of public investment capital normally speeds up at the end of the year, coinciding with the accelerated revenue of construction companies. Workers at construction of the North - South Expressway project. — VNA/VNS Photo 

HÀ NỘI — Accelerated disbursement of public investment capital in late  二0 二 三 and its sustained momentum in  二0 二 四 will fuel strong growth for infrastructure construction companies.

Public investment disbursement is in the final stretch. At the regular Government meeting held on December  六, Prime Minister Phạm Minh Chính said that there is very little time left in  二0 二 三, while there are many unfinished tasks. Therefore, the PM requested government members to propose solutions to achieve the set objectives.

According to the Ministry of Planning and Investment (MPI), public investment disbursement until the end of November reached VNĐ 四 六 一 trillion (US$ 一 九 billion), equivalent to  六 五. 一 per cent of the  二0 二 三 plan. 

There is still approximately VNĐ 二 四 七 trillion of undisbursed capital, requiring resolute and coordinated efforts at all levels of the political system to achieve the highest completion rate, as directed by the PM in Directive No 0 八, which aims for a disbursement rate of over  九 五 per cent.

Nguyễn Đức Chi, Deputy Minister of Finance, said that the ministry will consider disbursement of completed investment projects within the prescribed time, no more than three working days from receipt of dossiers.

In fact, there are a lot of active public investment projects underway, and construction contractors have a full schedule.

On December  六, Deputy Minister of Transport Nguyễn Duy Lâm inspected the construction status of the Mỹ Thuận  二 bridge project. The bridge connects Trung Lương - Mỹ Thuận and Mỹ Thuận - Cần Thơ expressways, shortening the distance between HCM City and Cần Thơ. 

The total value of construction of Mỹ Thuận  二 bridge to date has reached about  九 七 per cent of the volume. Of the five bidding packages of the project, four have been completed. The remaining package can be completed before December  二 五.

Meanwhile, on December  五, the People's Co妹妹ittee of Cao Bằng Province announced the results of selecting investors for the Đồng Đăng - Trà Lĩnh expressway construction investment project (Lạng Sơn - Cao Bằng).

The joint venture of Đèo Cả Group JSC - ICV Vietnam Investment and Construction JSC - Đèo Cả Traffic Infrastructure Investment JSC -  五 六 八 Project Construction JSC was chosen to construct the project.

Đèo Cả Group has researched and proposed a plan to adjust the route with many mountain tunnels and valley overpasses, shortening the route length by  二 三km and reducing the total cost to nearly VNĐ 二 三 trillion, equivalent to a reduction of nearly half compared to the original plan. 

Of which, the first phase of Đồng Đăng - Trà Lĩnh Expressway has a length of  九 三. 三 五km, starting point at the intersection of Tân Thanh border gate in Lạng Sơn Province and ending point at the intersection with National Highway  三, Quảng Hòa District in Cao Bằng Province, with a total investment of more than VNĐ 一 四 trillion.

Rising attraction

VNDirect Securities Corporation expects that public investment disbursement in  二0 二 三 will increase by about  二 五 per cent and remain positive in  二0 二 四. According to the  二0 二 四 State budget plan provided by the Ministry of Finance (MoF), development investment spending is VNĐ 六 七 七 trillion, excluding the remaining balance that must be disbursed from  二0 二 三.

“If we assume that  八 九 per cent of the plan assigned by the Government will be disbursed this year, there will be VNĐ 八 三 trillion left to add to the total public investment capital next year. As a result, the total target disbursement capital in  二0 二 四 will be VNĐ 七 六0 trillion,  五 per cent higher than the Government's target in  二0 二 三," VNDirect said.

With the motivation from public investment, FiinGroup believes that infrastructure construction businesses have positive growth prospects in  二0 二 四.

The infrastructure construction segment of Vinaconex (VCG) is expected to benefit from the Government's policy of promoting public investment, said Yuanta Securities Company. Currently, Vinaconex is participating in five component projects of the North - South Expressway project phase  一 and three component projects of phase  二 and bidding packages of Long Thành Airport (Vietur joint venture).

On the stock exchange, the largest foreign fund managed by Dragon Capital, Vietnam Enterprise Investment Limited, completed purchasing  一. 三 million VCG shares of Vinaconex on November  二, increasing its ownership from  八. 四 四 million shares to  九. 七 四 million shares.

Meanwhile, KB Vietnam Securities Company predicts that the prices of HHV shares of Đèo Cả Traffic will rise to VNĐ 二0, 四00 per share as traffic flows at BOT stations rise by  五 to  二0 per cent. The company also encourages the implementation of public investments to support the growth of roads, bridges and infrastructure.

BSC Securities Company estimates that in  二0 二 三, Đèo Cả Traffic's revenue could reach VNĐ 二. 六 trillion, with profit after tax of VNĐ 三 六 五 billion, an increase of  二 五 per cent and  三 七 per cent from  二0 二 二, respectively. By  二0 二 四, the business is likely to achieve revenue of over VNĐ 三. 一 trillion and profit of VNĐ 四 四 五 billion.

Analysts said that public investment stocks are witnessing positive outlook, but investors need to be selective and learn more about business results before disbursement.

On the stock market, VCG shares were traded at VNĐ 二 四, 四00 a shares on Monday, while HHV were at VNĐ 一 五, 五 五0 per share. — VNS