Resolving the infrastructure shortage – one of the major bottlenecks hindering national development – is now being pursued with unprecedented urgency to transform the country’s economic landscape.

At the 4th National Conference on Public Investment Disbursement Promotion, held on October 18, 2025, Prime Minister Pham Minh Chinh directly addressed the 50.7% disbursement figure and said: “This is not just a number – it is a metric of our management capacity, discipline, and accountability.”

His statement captured the current state of affairs: Vietnam is investing in infrastructure at an all-time high, yet concerns over disbursement speed and investment efficiency continue to loom.

Never before has public investment for a single government term reached VND 3.4 quadrillion (approx. USD 139 billion), up nearly 55% from the previous term. In 2025, total social investment capital is estimated at 33.2% of GDP, with a 2026 target of 40% – historically high even for Southeast Asia.

New highways stretch across the country – 3,245 km completed, surpassing the 3,000 km goal. Coastal roads total 1,711 km. Long Thanh International Airport, Tan Son Nhat Terminal 3, and international transshipment ports are being launched – heralding what could be called Vietnam’s "infrastructure decade."

The Prime Minister emphasized: “Talk less, do more – with clarity on people, tasks, and responsibilities.”

The golden years of infrastructure development

From 2021 to 2025, Vietnam allocated over VND 3.4 quadrillion (USD 139 billion) in public investment – a 55% increase compared to the previous five-year period, even though the number of projects dropped from over 11,000 to just 4,600. This shift reflects a focus on strategic, large-scale projects with broad, transformative impact.

In 2025, total social investment capital will reach 33.2% of GDP, meeting the government’s target range of 32-34%. In 2026, this is projected to increase to 40% – one of the highest rates ever in national fiscal history and within Southeast Asia.

Vietnam’s current pace of infrastructure development can be considered a “leap forward,” laying the groundwork for economic transformation.

In 2020, the country had only 1,163 km of expressways. By the end of 2025, that number will reach 3,245 km – nearly tripling in just five years.

The 1,711 km of coastal roads surpass the 1,700 km target.

Major transportation hubs are rapidly progressing: Phase 1 of Long Thanh International Airport is nearly complete. Tan Son Nhat Terminal 3, Noi Bai Terminal 2, Cat Bi, and Phu Bai are being expanded. Metro lines in Hanoi and Ho Chi Minh City – such as Cat Linh-Ha Dong, Nhon-Hanoi Station, and Ben Thanh-Suoi Tien – are also being activated.

Vietnam’s infrastructure landscape today can be summed up in two words: “simultaneous expansion.” In 2025 alone, 80 major projects worth VND 445 trillion (USD 18.1 billion) and 250 flagship works totaling VND 1.28 quadrillion (USD 52 billion) were launched or completed – a clear demonstration of the strategic commitment to infrastructure as a key driver of national progress.

Disbursement remains a weak link

As of mid-October 2025, public investment disbursement reached only 50.7% of the annual plan – approximately VND 455 trillion (USD 18.5 billion).

Notably, this marks the fourth consecutive year the government has held a national conference to accelerate public investment disbursement – and the fourth year repeating the same message: “Funds are available, projects are ready – but progress remains slow.”

Twenty-nine ministries and central agencies, along with 18 localities, have disbursement rates below the national average. Many strategic projects remain stalled due to land clearance issues, procedural delays, and a cautious mindset surrounding accountability.

Prime Minister Chinh was blunt: “There is no reason for money to sit in the treasury while people and businesses are desperate for capital.”

Slow disbursement, despite available funds, not only delays construction but also stifles economic growth. In a country where public investment accounts for over one-third of total social investment, every percentage point of delayed disbursement equals tens of trillions of dong idling in state coffers – all while interest continues to accrue on loans.

The World Bank notes that Vietnam’s public investment from 2019 to 2024 averaged 6.4% of GDP – higher than Thailand and Indonesia (both at 5%) – yet investment per capita remains low due to underperformance in project outcomes.

Actual disbursement rates fall below 80%, while many projects deliver subpar results compared to the capital spent.

In essence, Vietnam is accelerating in scale but lagging in efficiency – because its execution capacity has yet to match the pace of decision-making.

Super projects to transform the national economy

Upcoming “super projects” will shape Vietnam’s economic landscape for decades to come.

Between 2026 and 2030, Vietnam plans to launch the North-South high-speed railway project valued at around USD 67 billion, the Lao Cai–Hanoi–Hai Phong railway (USD 8 billion), and several major infrastructure ventures such as the international transshipment ports of Can Gio, Lien Chieu, and Hon Khoai, along with Gia Binh Airport, and expansions of Phu Quoc, Chu Lai, and Ca Mau airports. Numerous wind and gas power projects will also be implemented under Power Development Plan VIII.

These are grand projects – but they will test Vietnam’s fiscal discipline. With social investment capital forecast to hit 40% of GDP in 2026, the nation is approaching the fiscal safety threshold.

The World Bank warns that as investment volume surges, so do the risks of higher borrowing costs, delayed implementation, and repayment challenges. In many developing nations, rapid and unchecked public investment often leads to "form-over-substance" growth – with GDP rising while total factor productivity (TFP) stagnates, public assets degrade quickly, and public debt burdens intensify.

In Vietnam’s current growth model, infrastructure remains the “traditional engine” that drives investment, employment, and consumption. However, without institutional reform, this engine will soon “overheat.”

World Bank studies show that every 1% of GDP added through public investment can produce 1.5% medium-term growth – but only if investment efficiency is maintained. If not, the multiplier effect vanishes quickly.

Therefore, an infrastructure breakthrough is only meaningful when accompanied by institutional reform.

Vietnam needs a fundamentally different investment cycle – where planning, approval, disbursement, oversight, and evaluation are digitalized, transparent, and tied to individual accountability.

Reforms must span the Law on Public Investment, Law on Procurement, and PPP Law. A unified national investment portfolio should be established to avoid duplication, end the “project request” mechanism, and shift monitoring focus from “process compliance” to “outcome effectiveness.”

The government has already prioritized infrastructure as one of its three strategic breakthroughs. It is on the right track: focusing capital, avoiding fragmentation, and enhancing regional connectivity.

But a highway is only truly open when procedures are streamlined, responsibilities are clearly assigned, and capital flows like the lifeblood of a thriving economy.

As expressways open, high-speed rail begins, and mega energy and port projects take shape, Vietnam is turning the page toward a new development chapter.

Yet these colossal endeavors demand extraordinary execution, oversight, and unwavering determination from every implementer.

Lan Anh