Public investment creates a large amount of work for construction businesses

Minh Ánh |

The acceleration of public investment capital is one of the important drivers helping many infrastructure contractors maintain a large volume of work. Some contractors are holding unfinished contracts worth tens of trillions of VND.

More work for infrastructure contractors

The latest data shows that investment capital from the State budget continues to be boosted. According to the Statistics Department (Ministry of Finance), as of the end of June 2026, realized investment capital from the State budget reached about 335,600 billion VND, an increase of 12.7% compared to the same period last year. In July, disbursement momentum continued to accelerate, bringing the accumulated 7 months to 445,500 billion VND, equal to 39% of the annual plan and an increase of 18.4% compared to the same period.

Financial reports for the second quarter of 2026 of many infrastructure contractors also show that the number of overlapping tasks is high.

One of the enterprises with a large contract volume today is Construction Corporation No. 1 - JSC (CC1).

At CC1, the number of construction contracts signed but not fully implemented has increased from about 42,500 billion VND to over 50,000 billion VND after the enterprise signed nearly 8,000 billion VND of contract money in the first months of the year.

Many of these projects are entering a strong construction phase such as Long Thanh airport, Quang Trach 1 Thermal Power Plant, Na Duong 2 and North-South expressway packages.

The large workload has partly reflected in revenue. The consolidated financial statements for the second quarter of 2026 show that in the first 6 months of the year, CC1 achieved revenue of more than 6,464 billion VND, an increase of 31% compared to the same period. Of which, revenue from construction activities alone reached about 4,537 billion VND.

Another enterprise with a fairly clear level of connection with public investment is Vietnam Import-Export and Construction Corporation (Vinaconex, stock code VCG).

Information announced by Vinaconex's leadership at the 2026 General Meeting of Shareholders, the value of unfinished construction contracts of the enterprise is about 16,753 billion VND. Notably, about 10,900 billion VND, equivalent to nearly 2/3, comes from public investment projects.

Vinaconex is currently participating in many large infrastructure projects such as Long Thanh airport, ring roads in Hanoi and expressway projects. The enterprise also aims to sign about 4,000-6,000 billion VND of public investment contracts this year.

Lizen (stock code LCG) is also having a lot of work after continuously participating in traffic projects.

ACBS Research estimates that Lizen's unpaid contract value has exceeded 10,000 billion VND. In 2026, the enterprise will continue to construct projects such as expanding the Yen Bai - Lao Cai section, Quy Nhon - Pleiku expressway and many other transportation projects.

Q2 business results also began to reflect this progress. Lizen's construction revenue increased by 9% compared to the same period, in which the Yen Bai - Lao Cai expansion project was accelerated.

At FECON (stock code FCN), the amount of unfulfilled contracts is also about 10,000 billion VND. In the second quarter alone, the enterprise said that it has added more than 3,600 billion VND of contracts and new tasks, of which bidding packages at Gia Binh airport have a total value of nearly 1,600 billion VND.

Accumulated for 6 months, FECON's revenue reached nearly 3,213 billion VND, an increase of nearly 50% compared to the same period. Net cash flow from business activities reached positive 172 billion VND, while in the same period last year it was negative 356 billion VND.

Many things don't mean strong profit growth

The large number of contracts helps contractors ensure work sources for many quarters, even the next few years, but does not mean that revenue and profit will increase correspondingly.

Construction revenue is recorded according to construction progress and acceptance, while businesses have to advance costs of materials, labor, and machinery. At CC1, although revenue in 6 months increased by more than 31%, the second quarter alone still had a gross loss of nearly 94 billion VND due to cost of goods sold exceeding revenue. Profits are mainly supported by financial revenue, including investment transfer profits.

Vinaconex also admitted that construction and installation activities this year are under pressure from material prices, labor and low profit margins.

Clearly, accelerating public investment is helping the amount of work in the hands of many infrastructure contractors to maintain at a high level. But after the tens of trillions of VND in contracts, the ability to turn that amount of work into revenue, cash flow and profit is the factor showing how far businesses actually benefit.

Minh Ánh
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