Vietnam Unveils Massive Infrastructure Plan to Bolster Economy

Vietnam has launched an ambitious infrastructure and housing development plan, backed by investments representing 10% of its GDP, in a bid to stimulate the economy and propel the nation toward its goal of becoming a high-income country by 2045.

The move is designed to help Vietnam reach its 8% GDP growth target this year and achieve "double-digit" growth in the years to come.

The plan was announced by the government following recent reforms and a shift in leadership, signaling one of the country's most significant economic overhauls in decades.

Historically, Vietnam's economy has relied heavily on exports and foreign direct investment, leaving it vulnerable to external shocks.

The new strategy aims to mitigate this risk by boosting domestic demand through large-scale infrastructure projects.

This pivot comes amid rising global trade tensions, including recently announced retaliatory tariffs from the US, which could impact Vietnam's export-oriented model.

Under the new leadership of General To Lam, the General Secretary of the Communist Party, Vietnam is aiming to follow in the footsteps of South Korea and Taiwan to become an "Asian economic tiger."

While the country has successfully lifted millions out of poverty and seen its per capita income soar to over $16,000 from just $1,200 in 1990, it faces significant challenges, including an aging population, climate threats, and the need to transition its economy from low-cost manufacturing to high-tech industries and green energy.

The government's plan includes 250 projects valued at a combined 1.28 trillion dong ($ 49 billion). The majority of the funding for the projects—63%—will come from sources other than the government, which will contribute the remaining 37%.

Among the notable projects are a Viettel R&D Centre, focusing on semiconductors and AI, a new exhibition centre by the Vingroup conglomerate, and several major infrastructure developments being fast-tracked.

These include the Rach Mieu 2 Bridge, a new 3,000-kilometre highway, and the new Long Thanh Airport, which is set to open a year ahead of schedule in December 2025.

Domestic and international companies are expected to play a major role. Japanese giant Sumitomo Corp., for instance, has a $4.2 billion contract for a smart city project in Hanoi.

The new reform agenda, formalised under Resolution 68, seeks to bolster Vietnam’s private sector, which has long been overshadowed by state-owned enterprises.

The government hopes to unlock the sector's potential through new incentives and support, positioning it as a key driver of future economic growth.