Reviewing Vietnam’s 2021–2025 Government term reveals a crucial shift: institutional reform is no longer confined to documents - it has made its way onto construction sites, echoed in the rhythm of machinery and the surge of activated investment capital across the nation.

In 2025 alone, Vietnam broke ground or inaugurated 564 projects, with a total investment of over 5.14 quadrillion VND (approximately 209 billion USD). This was not limited to a few flagship projects or leading provinces - it marked the emergence of a widespread, large-scale investment landscape. The driving force behind this shift: institutions that now pave the way for development.

For years, institutional reform in Vietnam was described in abstract terms. Laws were amended repeatedly, resolutions passed in volume - yet many projects remained mired in legal and administrative gridlock.

But in 2025, something changed. For the first time, institutional reform could be seen in concrete, steel, and the beat of construction work.

Reform steps onto the field

By declaring institutional reform the “breakthrough of breakthroughs,” the Government stopped patching scattered rules and instead rebuilt foundations. It moved to comprehensively institutionalize major resolutions of the Politburo - on science and technology, private enterprise, global integration, and legal reform.

This led to an unprecedented volume of legislative and sub-law activity. From 2021 to 2025, the National Assembly passed over 178 laws, ordinances, and resolutions, while the Government issued 936 decrees. In 2025 alone, the volume of enacted documents reached a record high.

Yet numbers tell only part of the story. What matters more is the change in legal mindset. Legal “bottlenecks” were identified by name. Regulatory obstacles were no longer deferred to future terms. Law began to be viewed not as an impenetrable barrier, but as a tool for solving real problems.

Why private capital surged

The 2025 investment structure offers revealing insights. Of the over 5.14 quadrillion VND in capital deployed, private investment accounted for 74.6%, while State capital made up just over a quarter.

This signals a critical shift. Private capital didn’t flow because of more generous incentives - but because perceived risk declined. Institutional reform in this term targeted the one thing enterprises fear most: uncertainty.

Thousands of administrative procedures were cut. Business conditions were simplified. Document processing times were reduced. But more than cost savings on paper, the reforms eliminated a kind of ambient anxiety. Projects now know how long they’ll take, what steps are involved, who is accountable. A defined process replaces indefinite waiting. That clarity translates into decisions.

This renewed confidence drew private capital not just into traditional sectors - but also into long-cycle, regulation-heavy fields like infrastructure, energy, and urban development.

Public investment no longer walks alone

Another standout feature of 2025 was how public investment stepped into its role as a true enabler. The State didn’t take over from businesses - it opened the way.

Studies show that every 1% of public investment disbursed could boost GDP by 0.058 percentage points. More importantly, each đồng of State budget can attract 1.5 đồng of private capital, multiplying into 2.5 đồng invested in the economy.

Though this mechanism isn’t new on paper, it had been hard to implement. Overlapping laws, lengthy procedures, and high legal risks meant public and private investment often moved out of sync.

But in this term, legal bottlenecks were resolved, field-level feedback was heeded, and businesses received legal support. As policy risks declined and the “rules of the game” became clearer, public investment began to activate rather than replace private capital.

Infrastructure: the most visible face of reform

If there is one standout case study from 2021–2025’s reform effort, it is infrastructure.

By the end of 2025, Vietnam had completed over 3,800 km of expressways, exceeding targets. The North–South corridor is now largely connected from Lang Son to Ca Mau. In just five years, 2,025 km of new expressways came online - nearly double the entire total built over the prior 20 years.

This isn’t just a story of faster building - it’s about changing the way things are built. Decentralization empowered local authorities. Procedures were handled in parallel, not sequentially. Decisions were made based on real-time needs rather than waiting for every “ideal” condition. What once seemed impossible to accelerate is now measured in months, even quarters.

Alongside transport, major energy, power transmission, data infrastructure, and aviation projects took shape. These are no longer isolated undertakings, but parts of a new strategic infrastructure architecture - expanding the economic frontier.

This reflects a key result: institutional reform has gone deep. It hasn’t just multiplied the number of projects - it’s laid the groundwork for improving infrastructure operation and efficiency in the years to come. This is the solid launching pad for the next phase of public investment effectiveness.

Looking back to move forward

Total social investment in 2025 is estimated at over 4.15 quadrillion VND (around 169 billion USD), equivalent to 32.3% of GDP. The five-year average stands at about 33.2% of GDP - right in the strategic target range. These figures are not luck. They reflect an institutional foundation that has been strengthened.

Looking back on the 2021–2025 term, the most important legacy of institutional reform is not any single law, but a redefinition of the State’s role: from control to creation, from restriction to facilitation.

Institutional reform brought capital flows back to life, reignited construction sites, and widened the path for economic growth. But it also raised the bar for 2026–2030.

The next phase won’t just demand more - but better. Each project must not only set a new record, but deliver real value to the economy and society, in the spirit of “turning risks into opportunities” and “changing the state, shifting the momentum.”

Tu Giang - Lan Anh