The Ministry of Planning and Investment said that public investment disbursement in the first half of the year was estimated at VNĐ151 billion, fulfilling nearly 28 per cent of the plan assigned by the Prime Minister.

Besides factors related to policies, institutions, or labour shortages, the high price of construction materials is also the cause of the slow disbursement of public investment.

Prime Minister Phạm Minh Chính signed Decision No. 548/QD-TTg on establishing six inspection teams to solve problems related to the disbursement of public investment capital.

Specifically, the Government will implement many drastic solutions to boost public investment in the second half of the year and next year, such as increasing the frequency of updating material prices in localities and keeping project diaries to ensure payment for contractors.

For the whole year, VNDirect maintains its expectation that the public investment will increase by 20-30 per cent over last year, as growth in the second half of 2022 will be higher than in the first half.

At the same time, as Việt Nam is still gradually reopening its economy post-pandemic, public investment disbursement will grow rapidly throughout 2023 and become the main driver of demand for construction and construction materials.

In the long term, the scale of investment packages in key traffic projects in the country is very large, up to $32.1 billion in the 2022-2030 period.

Mirea Asset Vietnam Securities assesses that the profit margin of the construction industry is under pressure due to the high cost of input materials and the dip in the supply in the housing market. In addition, the impact of public investment has not met expectations.

However, in the long term, Mirea has a positive expectation on the growth of construction stocks as the demand for investment in infrastructure and residential real estate in Việt Nam is still high. As the progress of public investment has improved and the bottlenecks of the real estate market will be removed, there is more room for construction companies to grow. VNS