Vietnam’s Investment Focus: Enhancing Infrastructure for Socio-Economic Growth
By Minh Hue
Fri, February 7, 2025 | 9:49 pm GMT+7
Vietnam is shifting its public investment strategy to prioritize the development of expressways and high-speed urban railway projects over the next five years. This initiative aims to improve inter-regional connectivity and stimulate socio-economic growth across the country.
In a recent meeting, the National Assembly’s (NA) Standing Committee approved a resolution outlining the principles, criteria, and quotas for public investment allocation from 2026 to 2030. Minister of Planning and Investment Nguyen Chi Dung emphasized that the upcoming phase will make a specific focus on national priority projects, which include expressways, high-speed railways, and urban rail systems.
Strategic Priorities in Infrastructure
Minister Dung underscored that the goal of this investment strategy is to expedite the completion of critical infrastructure projects. These projects are vital not only for enhancing connectivity among regions but also for driving socio-economic development. State resources will be channeled into various sectors, including defense and security, science and technology, innovation, nuclear energy, digital infrastructure, and green transformation.
Le Quang Manh, Chairman of the NA’s Finance and Budget Committee, expressed support for the proposed allocation principles but advised a thorough review of the criteria for projects utilizing official development assistance (ODA) and concessional foreign loans. This step is crucial to ensure consistency with the new Law on Public Investment. Furthermore, he recommended prioritizing ODA for technology transfer projects in critical areas where Vietnam lacks expertise.
Accelerating Key Projects
Vietnam is making strides in accelerating various pivotal projects, including the eastern wing of the North-South Expressway, metro lines in both Hanoi and Ho Chi Minh City, and the Long Thanh International Airport in Dong Nai Province. This year, authorities aim to complete procedures and begin construction on the Lao Cai-Hanoi-Hai Phong railway.
Moreover, the North-South high-speed railway project, which the legislature approved in late November 2024, is a significant development. Spanning 1,541 kilometers, the railway will connect Ngoc Hoi Station in Hanoi to Thu Thiem Station in Ho Chi Minh City, passing through 20 provinces and cities. The project features a dual-track gauge of 1,435 mm and is designed for a maximum speed of 350 km/h, with a load capacity of 22.5 tons per axle. The estimated cost of VND1.713 trillion (approximately $67 billion) is set for completion by 2035.
Growth Targets and Resource Allocation
The Vietnamese government is targeting an economic growth rate exceeding 8% this year, with ambitions for double-digit rates leading up to 2030. Vu Hong Thanh, Chairman of the NA’s Economic Committee, highlighted the substantial resources needed to realize these growth projections. He pointed out the necessity for criteria that position public investment as seed capital, thereby attracting additional funding.
NA Chairman Tran Thanh Man stressed that public investment allocations should be founded on urgency, effectiveness, transparency, and fairness. This approach ensures that critical projects receive financial support while less urgent initiatives are deferred. He also highlighted the importance of funding for science, technology, innovation, and digital transformation.
Streamlining Public Investment Projects
According to Minister Dung, Vietnam has made significant progress in streamlining its public investment projects. The number of projects has decreased from 20,000 in 2010-2015 to 10,000 in 2016-2020, and fewer than 5,000 in 2021-2025. Prime Minister Pham Minh Chinh has directed a further reduction to approximately 3,000, aiming to focus resources on large-scale projects. These include essential efforts in infrastructure, science, technology, innovation, and digital transformation.
As Vietnam embarks on this focused investment journey, the nation is poised to build a robust infrastructure that not only enhances connectivity but also drives significant economic growth and development for years to come.