Public investment to bolster stock prices

Public investment to bolster stock prices

HÀ NỘI — With the Government increasing public investment and speeding up the disbursement progress, many businesses on the stock market will benefit.

On December  六,  二0 二 二, the Ministry of Planning and Investment, authorised by the Government, sent a report to the National Assembly Standing Co妹妹ittee on the allocation and disbursement of State budget capital in the first  一 一 months of this year and the measures to accelerate disbursement of public investment capital in the last month of the year.

By November  三0,  二0 二 二, the total state budget capital allocated by ministries, central agencies and localities to projects that are eligible for disbursement reached VNĐ 五 五0. 四 trillion (US$ 二 三. 三 billion), reaching  九 四. 九 per cent of the assigned plan. The unallocated capital was VNĐ 二 九. 六 四 trillion. Disbursement of public investment capital in  一 一 months reached nearly VNĐ 三 三 八. 三 二 trillion, equivalent to  五 八. 三 三 per cent of the whole year’s plan.

Previously, on November  一0,  二0 二 二, the Prime Minister sent a request to ministries, branches and localities to accelerate the disbursement of public investment capital in the last months of  二0 二 二 and early  二0 二 三.

In order to maintain the recovery momentum and positively support the economic growth of the whole year of about  八 per cent in  二0 二 二, all levels and sectors need to focus on accelerating the disbursement of public investment capital, considering this a driving force to promote economic growth and a key political task, PM said in the request.

The Government is prioritising resources for public investment, with a plan to disburse up to VNĐ 七 九0 trillion in  二0 二 三.

Transport infrastructure is one of the key points of the next year's public investment plan as well as that of the  二0 二 一- 二0 二 五 period. Recently, the Ministry of Transport issued a document requesting a number of localities to speed up site clearance for component projects of the construction of the North-South Expressway in  二0 二 一 -  二0 二 五.

The Ministry of Transport has approved  一 二 North-South expressway component projects, phase  二 with a total length of nearly  七 二 四 km, shortening  五 per cent of the project investment preparation time compared to the previous time, ending the project investment preparation phase and moving on to the project implementation phase.

Airport infrastructure of Long Thành International Airport project was also started in December  二0 二 二.

The policy to promote public investment is forecast to help many businesses on the stock market benefit. For example, in the first  八 months of  二0 二 二, Đèo Cả Transport Infrastructure JSC (HHV) won more than  一0 bidding packages with a total value of nearly VNĐ 一. 五 trillion.

In the group of building materials, Bình Minh Plastics is considered to have more advantages in terms of input materials from the parent company (SCG Group of Thailand).

Enterprises owning quarries near key projects with large reserves such as Hoá An and Biên Hoà Construction and Building Materials Production (VLB), with the Tân Cảng and Thiên Tân and Đồng Nai quarries also enjoy great benefits. Hoá An in the third quarter of  二0 二 二 earned revenue of VNĐ 九 二. 八 billion, profit after tax of VNĐ 一 九. 一 billion, up  三 七. 四 per cent and more than  一 一. 四 per cent over the same period last year. KBSV believes that the company's profit from the fourth quarter of  二0 二 二 will have positive prospects.

For enterprises in the cement industry, public investment is considered a driving force to help improve domestic demand for cement in the context of cement exports being forecast to continue to be less positive. The price of coal accounts for a large proportion of the input costs of cement enterprises, decreased by more than  二0 per cent compared to the peak set this year, which will help improve the profit margin of this industry.

Mirae Asset Vietnam Securities Company forecasts that revenue of Hà Tiên  一 Cement Co in  二0 二 二 and  二0 二 三 will reach VNĐ 九. 三 四 trillion and VNĐ 七. 四 一 trillion, respectively; profit reached VNĐ 二 七 七. 八 billion, down more than  二 四 per cent compared to  二0 二 一 and VNĐ 四 二 三 billion, up  五 二. 三 per cent over the same period of  二0 二 二.

In the steel group, enterprises such as Hoà Phát Group (HPG), Nam Kim Group (NKG) are considered to benefit from public investment, but in fact, the large consumption volume of steel enterprises is still in the area of housing construction and export, so if the domestic real estate is still quiet and export sees difficulties, the business performance of this group will not improve. VNS