VINACHEM

250 strategic projects break ground to boost infrastructure, productivity, and public-private investment.

With Vietnam’s government targeting GDP growth of 8.3-8.5% in 2025, public investment and strategic projects have emerged as critical levers to meet this goal. Accelerating disbursement of public capital is now a top priority to translate ambition into real economic momentum.

On August 19, 2025, a major national event will mark the groundbreaking and inauguration of 250 large-scale infrastructure projects across 34 provinces and cities. The central hub for this initiative is the National Convention and Exhibition Center in Hanoi’s Dong Anh District, with live broadcasts connecting all project sites.

Strategic timing signals development intent

According to Dr. Nguyen Quoc Viet, a public policy expert at the University of Economics under Vietnam National University, Hanoi, the government's decision to hold this mass inauguration on August 19 carries deep strategic meaning. It is not merely a celebration of the country’s 80th National Day on September 2, but a symbolic declaration of Vietnam’s ambition for growth and integration in the new era.

The message is clear: Vietnam is fully committed to infrastructure development, improving the investment climate, and showing strong resolve to meet national development goals. The initiative sends a powerful signal to both domestic and foreign investors about the government's implementation capabilities and policy consistency.

Among the 250 projects, 89 are ready for inauguration, while 161 will begin construction. The higher proportion of new project groundbreakings reflects a strategic outlook focused on long-term growth rather than simply marking completed achievements.

Private capital dominates investment

Total capital for the projects is estimated at 1.28 million billion VND, or approximately $50 billion. State funding accounts for 37% (129 projects, roughly $18.7 billion), while private and foreign direct investment (FDI) makes up 63% (121 projects, about $31.3 billion). This marks a significant shift in Vietnam’s strategy, with a strong push to mobilize private and international capital and ease pressure on the state budget.

This capital injection is expected to directly boost aggregate demand and contribute to GDP growth in 2025 and beyond. The Ministry of Construction estimates these projects will contribute over 18% of the country's GDP in 2025 and over 20% in subsequent years, underlining their importance as long-term economic engines.

Public-private cooperation key to unlocking potential

This is more than just a short-term economic stimulus. It represents a structural shift, creating positive spillover effects across sectors and unlocking a new investment cycle for infrastructure, logistics, energy, and other growth-driving industries.

The projects will improve inter-regional connectivity, reduce transportation costs, promote trade, attract high-tech FDI, and enhance productivity through exposure to global technologies and management standards. These outcomes will help drive Vietnam’s competitiveness and modernization.

A major emphasis will also be placed on social inclusion, with groundbreaking ceremonies for affordable housing, smart urban zones, upgraded healthcare and education facilities, and cultural and tourism development initiatives.

Accelerating momentum for growth

Dr. Le Duy Binh, Managing Director of Economica Vietnam, highlighted that this extensive rollout is direct evidence of the government’s determination. With more than $50 billion in capital spread across 34 provinces, the projects reflect unprecedented urgency and coordination among ministries, agencies, and local governments.

The projects align with the government’s objective of evaluating public sector performance based on public investment disbursement, which is now seen as a critical benchmark for leadership accountability.

The 2025 Public Investment Law, effective from January 1, 2025, introduces bold reforms to enhance decentralization, streamline project approvals, and boost disbursement efficiency.

According to General Statistics Office Director Nguyen Thi Huong, this wave of investment will be a key driver of national economic growth. The government’s target of disbursing more than 900 trillion VND (over $35 billion) in public investment in 2025 represents a 40% increase from 2024. Full disbursement could add over 2 percentage points to national GDP.

As of July 2025, only 40.7% of the public investment plan has been disbursed, meaning nearly 60% must be disbursed in the remaining five months. This requires decisive action from all stakeholders, including ministries, local governments, and project contractors, to ensure both progress and quality.

A launchpad for Vietnam’s long-term future

If deployed effectively, this investment initiative will be the launchpad for Vietnam’s economic transformation. The surge in demand for raw materials like cement, steel, machinery, and transport services will stimulate supporting industries. Job creation across construction, engineering, and services will boost income and consumption, reinforcing domestic production.

Infrastructure improvements will lower logistics costs, speed up the movement of goods and services, and expand production capacity. This will help attract high-quality FDI, advance industrialization, and accelerate economic restructuring toward a modern, competitive economy.

The combination of short-term stimulus and long-term productivity gains from the 250 projects is expected to help Vietnam achieve or exceed its GDP growth target of 8.3-8.5% in 2025.