Infrastructure stocks poised for growth as Vietnam advances PPP bond framework

Amid rapidly growing demand for infrastructure funding, the draft decree on public bond issuance by public-private partnerships, currently under consultation by the Ministry of Finance and the State Securities Commission, is expected to help complete the legal framework for capital mobilisation for large-scale infrastructure projects.

Beyond creating a new medium- and long-term funding channel for PPP projects, experts believe the draft decree could also provide additional momentum for listed infrastructure companies on the stock market in the coming period.

Tyler Nguyen Manh Dung, chief market strategist at Ho Chi Minh City Securities Corporation (HSC), said infrastructure stocks are likely to become one of the most prominent themes in Vietnam’s stock market during 2026-2030, driven by rising public investment demand and continued infrastructure development.

Accelerated public investment provides a catalyst for infrastructure construction companies

For 2026 alone, the Prime Minister has assigned nearly $39.8 billion in state budget-funded public investment, up 10.4 per cent from 2025 and the highest level on record.

“However, growth prospects will diverge significantly across sectors and will depend heavily on actual project implementation progress rather than policy expectations alone,” Dung said.

According to Dung, for transport infrastructure construction companies, the key factor remains the pace of public investment disbursement. In practice, the gap between approved plans and actual implementation progress continues to be the most enduring obstacle to growth for businesses in the sector.

In the first four months of 2026, public investment disbursement just approximated 14.2 per cent of the prime minister’s assigned target, meaning stock prices in the sector have yet to fully reflect policy expectations.

If disbursement rates are maintained at above 90 per cent of planned levels, this would continue to serve as a major growth driver for construction and infrastructure materials companies.

In addition to transport infrastructure, the industrial park segment is viewed as having strong long-term growth potential thanks to foreign direct investment inflows and the ongoing restructuring of global supply chains.

Vietnam is increasingly emerging as a strategic manufacturing destination in the region. In the first four months of 2026 alone, disbursed foreign direct investment (FDI) reached approximately $7.4 billion, up 9.8 per cent on-year and marking the highest level in five years.

As a result, companies with large ready-to-lease land banks, strategic locations and integrated infrastructure are expected to benefit more clearly.

At the same time, next-generation industrial park models integrating logistics, housing and utilities are expected to help companies improve profit margins and diversify revenue streams.

In the energy sector, growth prospects are seen as heavily dependent on the policy framework, particularly electricity pricing mechanisms, bidding regulations and the implementation progress of the National Power Development Plan VIII.

As Vietnam actively pursues its net-zero commitment by 2050, renewable energy companies as well as power plants scheduled to begin operations during 2026-2028 are expected to enjoy greater medium- and long-term growth opportunities.

Meanwhile, the logistics sector continues to benefit from e-commerce growth, rising demand for cold storage and Vietnam’s increasingly important role in regional supply chains.

According to market data, built-ready warehouse absorption exceeded 466,000 square metres in 2025, the highest level in five years. Companies investing heavily in digital infrastructure, automation and logistics management systems are expected to maintain more sustainable competitive advantages over the long term.

However, the sector still faces pressure from rising fuel costs amid prolonged geopolitical tensions in the Middle East.

The recent surge in oil prices has increased operating costs and added inflationary pressure, with the consumer price index in April rising 5.46 per cent, the highest level since early 2020.

HSC expert believes a key ‘convergence’ factor for the entire infrastructure stock segment is the potential formation of a PPP bond market in the near future.

“If the PPP bond decree is expedited effectively in 2026, it could become an important catalyst to solve capital shortages for large-scale infrastructure projects, while also creating additional benchmarks for capital costs and long-term cash flows in the market,” Dung said.

Overall, the HSC maintains a positive outlook on infrastructure stocks over the medium and long term. However, experts view this as a long-term growth cycle rather than a short-term rally, making it more suitable for investors with a three- to five-year investment horizon.

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