Mon, 15th Apr 2024 12:23 (GMT +7)

Construction businesses expect recovery thanks to public investment

Tuesday, 03/10/2023 | 15:00:00 [GMT +7] A  A

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.

Public investment is expected to become a momentum for the economy. - Illustrative image (Photo: baodautu.vn)

Economic experts said the Government is accelerating the disbursement of public investment in the remaining months of 2023.

The groundbreaking of Long Thanh international airport project in late August is said to have positive impacts on various aspects, showing the determination of the Government, 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's recovery and robust growth in the near future.

Apart from the project, Cienco4 has consecutively secured contracts for various significant projects, including the second phase of the North-South Expressway, Bung - Van Ninh section with a contract value of over 1.8 trillion VND, and Hau Giang – Ca Mau section with a value 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 to achieve revenue of over 3.24 trillion VND in 2024, representing a 15% increase compared to 2023, with main contributions by key projects such as the North-South Expressway Phase 2, Long Thanh international airport and Ring Road No.3 projects.

According to Mirae Asset Securities company, with several ongoing projects, companies, including Cienco4, 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 a plan to issue shares for existing shareholders.

The capital mobilisation through issuing additional shares is taking place in the context that the firm has won numerous large construction contracts with a total value of more than 17 trillion VND in the first half of this year.

Deo Ca is carrying out construction 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 Dong province, and a coastal road project in Binh Dinh province.

Source: VNA