ACB Securities (ACBS) has released an analysis report on its outlook for Vietnam’s infrastructure construction industry.

According to the report, by the end of November 2024, public investment disbursement had reached VND459.9 trillion ($18 billion), completing 64.3% of the annual plan. Of this, transportation projects disbursed VND62.7 trillion ($2.5 billion), achieving 85.6% of the plan.

Experts at ACBS identified several reasons for the slow progress in public investment disbursement, including the implementation of the 2024 Land Law, which came into effect on August 1, 2024. This law has increased land clearance costs and led to the temporary suspension of some projects for adjustments. In addition, shortages of materials and filling sand have also affected the disbursement progress.

Despite these challenges, ACBS believes there is still significant potential to boost public investment. Vietnam's current State budget and public debt are in a very positive position, creating ample room for the Government to increase borrowing and boost public investment spending, it remarked.

Furthermore, the Government aims for Vietnam's GDP growth for the 2026-2030 period to be 7.5-8.5% per year. Achieving this ambitious GDP growth plan will largely depend on robust public investment disbursement activities, the report from ACBS noted.

According to ACBS, public investment will be rapidly promoted from the beginning of 2025, immediately after the new laws take effect. 

ACBS also explained that 2025 is the final year of the 2021-2025 medium-term public investment plan, with a record public investment of VND791 trillion (equivalent to 6.4% of GDP) approved by the National Assembly. This budget will help accelerate the construction of key projects such as the North-South Expressway Phase 2, Long Thanh International Airport, and the North-South Railway.

"We expect that public investment will be the main driving force for Vietnam's economic growth in the coming period," ACBS stated in its report.