Positive signs for public investment stocks in March

Many securities companies are recommending investors buy stocks in the public investment group as there are many macro-economic factors offering support.

According to the General Statistics Office of Vietnam, in the first two months of 2022, total disbursement of public investment reached VND46.32 trillion ($2.03 billion), or 9 per cent of the annual plan.

The Bao Viet Securities Company has assessed that, in March, the volume of investment from the State budget may increase. The government’s program to support economic recovery with an additional VND113.5 trillion ($4.96 billion) investment package from the State budget for infrastructure development will also create a force to stimulate public investment.

The Agribank Securities Corporation (Agriseco) shares a similar opinion. Disbursement activities, it said, are expected to be active in the months of come. It mentioned investment incentives such as the disbursement of economic stimulus package, which focuses on VAT reductions, infrastructure development, healthcare, and business support. Some industry groups are expected to benefit directly, including construction and building materials, according to Agriseco.

Mirae Asset’s March stock market strategy report also touched on construction and public investment stocks. In the next three to five years, public investment is an area that will receive special attention, and the government will focus resources on infrastructure projects to stimulate growth and support economic recovery. Mirae Asset also expects that stocks of listed construction and infrastructure companies will benefit directly from a wave of public investment by the government and indirectly from the spillover effects of this policy.