Vietnam, December 24 –
HÀ NỘI — Many companies in the stock market will benefit from increased government investment and accelerated spending progress.
On December 6, 2022, the government-approved Ministry of Planning and Investment reported to the Standing Committee of the National Assembly on the allocation and expenditure of state budget capital for the first 11 months of the year and measures to accelerate expenditure. I have sent the letter. of public investment capital in the last month of the year.
By November 30, 2022, the total provincial budget capital allocated to projects eligible for expenditure by ministries, central agencies and local governments will reach VND5,504 trillion (US$23.3 billion). Reached 94.9% of plan. Unallocated capital was VND 29.64 trillion. The public investment capital expenditure for the 11 months amounted to about VND338.32 trillion, representing 58.33% of the annual plan.
Prior to this, on November 10, 2022, the Prime Minister sent a request to Ministries, Branches and Local Governments to accelerate the disbursement of public investment capital from the end of 2022 to the beginning of 2023.
To sustain the recovery momentum and positively support annual economic growth of around 8% in 2022, all levels and sectors need to focus on accelerating public investment capital spending. He sees this as a driving force to boost economic growth and is an important political task, the prime minister said in a request.
The government is prioritizing resources for public investment, planning to spend up to VND790 trillion in 2023.
Transport infrastructure is one of the key points of public investment plans for next year, as well as public investment plans for 2021-2025. Recently, the Department of Transportation issued a document requesting many local governments to accelerate site clearances for component projects of the North-South Expressway construction from 2021 to 2025.
The Department of Transportation has approved 12 North-South Expressway component projects, Phase 2 totaling approximately 724 km. This will shorten the investment preparation period of the project by 5% compared to the previous time, and the project will finish the investment preparation phase and move on to the next stage. To the implementation stage of the project.
The airport infrastructure for the Long Thanh International Airport project has also started in December 2022.
Policies that encourage public investment are projected to help many firms in the stock market profit. For example, in the first eight months of 2022, Đèo Cả Transport Infrastructure JSC (HHV) won more than 10 of his bidding packages with a total value of about VND1.5 trillion.
In the construction materials group, Binmin Plastics is considered to have an advantage in terms of input materials from its parent company (the SCG Group in Thailand).
Companies with quarries near important reserve-rich projects, such as Hoá An with Tân Cảng, Thiên Tân and Đồng Nai quarries, and Biên Hoà Construction and Building Materials Production (VLB) will also benefit greatly. I can do it. In the third quarter of 2022, Hoá An’s revenue was VND92.8 billion and profit after tax was VND19.1 billion, up 37.4% year-on-year, up more than 11.4%. KBSV believes the outlook for the company’s earnings from the fourth quarter of 2022 is bright.
For companies in the cement industry, public investment is seen as a driving force to improve domestic demand for cement at a time when cement exports are forecast to remain negative. Coal prices, which account for a large portion of cement companies’ input costs, are down more than 20% from peaks set this year, helping improve the industry’s profit margins.
Mirae Asset Vietnam Securities Company forecasts that Hà Tiên 1 Cement Co’s revenue will reach VN$9.34 trillion and VN$7.41 trillion in 2022 and 2023 respectively. Profit reached VN 277.8 billion, a decrease of more than 24% compared to 2021 and VN 423 billion, an increase of 52.3% compared to the same period in 2022.
In the steel group, companies such as Hoa Phat Group (HPG) and Nam Kim Group (NKG) are believed to benefit from public investment. and the field of export. So, if domestic real estate is sluggish and exports struggle, I don’t think this group’s performance will improve. VNS