Philippine and Vietnamese conglomerates plan to invest a combined $185 billion over the next decade, “their most demanding investment cycle to date,” according to S&P Global Ratings.
The amount is about two and a half times their spending over the past 10 years, with around two-thirds earmarked for infrastructure and renewable energy. “While successful execution could fortify market positions, delays in realizing returns from large projects and sizable upfront investments may weigh on balance sheets,” S&P said.
The report covered major listed firms including Aboitiz Equity Ventures, Ayala Corp., San Miguel Corp., and SM Investments from the Philippines, and Vietnam’s Vingroup, Masan Group, Hoa Phat Group, and FPT Corp.
S&P said Philippine conglomerates enjoy “robust cash flow and financial discipline,” while Vietnamese peers “are relying more heavily on borrowings,” with debt-to-EBITDA ratios rising to 6.3 times in 2024 from 3.8 times five years earlier.
“Private players are leading the way in renewable energy development,” S&P said, noting Philippine groups could contribute up to half of the nation’s renewable capacity by 2030.
The agency flagged risks tied to leverage, transparency, and execution, saying “strong governance, disclosure, and risk management practices could mitigate systemic risks as conglomerates expand into more complex ventures.”
