Vietnam Rolls Out Ambitious Infrastructure Plan for Economic Expansion
The action is intended to assist Vietnam in meeting its GDP growth goal of 8% this year and achieving "double-digit" growth in the years to follow.
Following recent reforms and a change in leadership, the government unveiled the plan, marking one of the biggest economic overhauls the nation has seen in decades.
Vietnam's economy has historically been highly dependent on exports and foreign direct investment, making it susceptible to outside shocks.
By increasing domestic demand through significant infrastructure projects, the new approach seeks to reduce this risk.
This change could affect Vietnam's export-oriented business model in the face of escalating international trade tensions, including recently announced retaliatory tariffs from the US.
Vietnam is seeking to become a "Asian economic tiger," following in the footsteps of Taiwan and South Korea, under the new leadership of General to Lam, the Communist Party's general secretary.
Even though the nation has successfully lifted millions out of poverty and seen its per capita income rise from $1,200 in 1990 to over $16,000 today, it still faces many obstacles, such as the need to shift its economy from low-cost manufacturing to high-tech industries and green energy, as well as an aging population and climate threats.
The government's plan includes 250 projects valued at a combined 1.28 trillion dong ($49 billion). The government will provide the remaining 37% of the projects' funding, with the remaining 63% coming from outside sources.
Among the noteworthy projects are a new exhibition center by the Vingroup conglomerate, a Viettel R&D Center that focuses on semiconductors and artificial intelligence, and several significant infrastructure developments that are being expedited.
These include the new Long Thanh Airport, which is scheduled to open a year early in December 2025, the Rach Mieu 2 Bridge, and a new 3,000-kilometer highway.
It is anticipated that both domestic and foreign businesses will be heavily involved. For example, the Japanese behemoth Sumitomo Corp. has a $4.2 billion contract for a smart city project in Hanoi.
Formalized under Resolution 68, the new reform agenda aims to strengthen Vietnam's private sector, which has historically been overshadowed by state-owned businesses.
By providing new incentives and support, the government hopes to unleash the sector's potential and establish it as a major force behind future economic expansion.
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