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| A corner of Hanoi __Photo: VNA |
Six of Vietnam's largest private conglomerates are splashing nearly VND 4.9 quadrillion (USD 200 billion) across 40 major projects, underscoring the growing role of the private sector in driving the country's infrastructure, industrial and urban development.
According to a recent report by BIDV Securities (BSC), these projects span residential and urban developments, airports, expressways, high-speed rail, industrial facilities and other strategic infrastructure.
Property developer Vingroup accounts for the largest planned investment, with 12 projects worth totally VND 2.3 quadrillion.
Sunshine Group ranks second with five projects worth about VND 818 trillion.
Other major investors include Sun Group, with ten projects worth VND 457 trillion, THACO with five projects worth VND 342 trillion, Masterise Group with three projects worth VND 232 trillion, and Hoa Phat Group with four projects worth VND 12.5 trillion.
There is also a joint project between THACO and Hoa Phat with an estimated investment of around VND 714 trillion.
BSC noted that the report excludes approximately VND 1.5 quadrillion earmarked for five metro lines in Hanoi, as those projects are financed with State capital.
It also excludes several Masterise and MIK Group property developments as information is unavailable, as well as projects still at the proposal stage.
Real estate is the sector which attracts the largest share of planned private investment. Vingroup alone is expected to invest nearly VND 1.9 quadrillion in property projects, while Sunshine Group plans VND 818 trillion.
A consortium involving THACO, Dai Quang Minh and Hoa Phat is expected to invest nearly VND 737 trillion while Sun Group plans around VND 392.5 trillion in real estate.
The companies are also expanding into transport infrastructure and industry.
Vingroup plans to invest about VND 224.5 trillion in high-speed rail projects, more than VND 105 trillion in energy and VND 80 trillion in steel production.
Masterise and Sun Group are pursuing airport projects valued at approximately VND 196 trillion and VND 8.5 trillion, respectively.
Sun Group also plans to invest more than VND 25 trillion in expressways, while Masterise is developing bridge projects worth around VND 35 trillion.
BSC said the investment plans are expected to boost credit demand and could make banks among the main beneficiaries in 2027, as large private corporations seek financing for capital-intensive projects.
However, the concentration of lending to a small number of conglomerates and mega-projects could increase credit concentration risks for the banking sector, BSC warned.- (VNS/VLLF)
