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Construction businesses expect recovery thanks to public investment

Public investment is expected to become a momentum for the economy, especially for construction and transportation businesses, to recover and develop in 2023 and the following years.
Construction businesses expect recovery thanks to public investment ảnh 1Public investment is expected to become a momentum for the economy. - Illustrative image (Photo: baodautu.vn)
Hanoi (VNA) - Public investment is expected to become a momentum for the economy, especially for construction and transportation businesses, to recover and develop in 2023 and the following years.

Economic experts said the Governmentis accelerating the disbursement of public investment in the remaining monthsof 2023.

The groundbreaking of Long Thanh international airport project in late August is said tohave positive impacts on various aspects, showing the determination of theGovernment, localities, and related businesses in speeding up the disbursement of public investment.

As a firm joining Package No. 4.6 within component project No. 3 of the project, Cienco4 Group (C4G)stated that this contract, with total investment of over 8.1 trillion VND(over 332 million USD), is hoped to serve as a significant boost for Cienco4'srecovery and robust growth in the near future.

Apart from the project, Cienco4has consecutively secured contracts for various significant projects, includingthe second phase of the North-South Expressway, Bung - Van Ninh section with acontract value of over 1.8 trillion VND, and Hau Giang – Ca Mau section with avalue of over 1.7 trillion VND; package XL03 of component project 2 of Khanh Hoa - Buon Ma Thuot Highway project worth over 2.99 trillion VND; Ring Road No.4 - Hanoi Capital Region project worth nearly 900 billion VND, and Ho Chi Minh City's Ring Road No. 3 project worth over 1.41 trillion VND.

The group is expected toachieve revenue of over 3.24 trillion VND in 2024, representing a 15% increasecompared to 2023, with main contributions by key projects such as theNorth-South Expressway Phase 2, Long Thanh international airport and Ring Road No.3projects.

Construction businesses expect recovery thanks to public investment ảnh 2Illustrative image (Photo: VNA) 
According to Mirae AssetSecurities company, with several ongoing projects, companies, includingCienco4, are in a position to establish stability in their revenue streams,along with opportunities for growth and profitability in the coming years.

In addition to Cienco4, Deo Ca Traffic Infrastructure Investment JSC has recently announced aplan to issue shares for existing shareholders.

The capital mobilisationthrough issuing additional shares is taking place in the context that the firmhas won numerous large construction contracts with a total value of more than17 trillion VND in the first half of this year.

Deo Ca is carrying outconstruction work on contracts associated with five key projects, which include Quang Ngai – Hoai Nhon Expressway, coastal road to Da Nang's Lien Chieu Port, Cam Lam – Vinh Hao Expressway, a project to upgrade and expand Prenn Pass in Lam Dongprovince, and a coastal road project in Binh Dinh province./.
VNA
#Public investment #momentum #transportation businesses #Long Thanh international airport project #robust growth #C4G #Cienco4 #Mirae Asset #construction contracts #Vietnamplus #Vietnam news #Vietnam News Agency
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