According to the Ministry of Finance, by the end of 2024, Vietnam has disbursed about 548.569 trillion VND of public investment capital, reaching 72.9% of the plan. Although it hasn’t matched the figures of 2023, the ICOR index indicates improved capital efficiency. PSI draws lessons from China’s 1999-2007 period where public investment was a key driver for economic growth. Fixed asset investment in China significantly increased, akin to Vietnam’s current situation where public investment is expected to support an 8% GDP growth in 2025. Fiscal policies and credit growth are anticipated to facilitate public investment, with several major projects underway, such as the North-South expressway and power plants. PSI’s report emphasizes that large companies in construction like HHV, VCG, CTD, and FCN will benefit from this trend, thanks to upcoming key public investment projects.
Leave a Reply