Economist spotlights promise, risks in Vietnam’s $142bn infrastructure push

Vietnam inaugurated and broke ground on 234 infrastructure projects nationwide last week with a total investment of about VND3.4 quadrillion ($142 billion), including airport runways, expressways, international stadiums, and major hospitals.

Despite concerns that the simultaneous launch could lead to bottlenecks and delays similar to those seen in previous major projects, experts say this wave of infrastructure investment sends a more forceful signal to the economy, supported by strong private-sector participation and Resolution 68.

Speaking to Tuoi Tre News, Do Thien Anh Tuan, a lecturer in economics at Fulbright University Vietnam, said the scale and number of the projects reflect the government’s determination to accelerate growth, while signaling that public investment is being used to lead, create space, and build confidence in order to attract private capital.

In your opinion, what does the scale of this wave of projects say about the government’s determination to promote growth and public investment?

First and foremost, it sends a very clear message about the political resolve to accelerate economic growth. With the total investment equivalent to about 26.5 percent of Vietnam’s GDP in 2025, these projects reflect a decisive choice to fast-track development investment, treating public investment and infrastructure as key pillars for sustaining growth amid ongoing domestic and global uncertainties.

Public investment remains a tool the state can proactively deploy to stimulate aggregate demand, create jobs, and maintain economic momentum in 2026 and the years ahead.

Another notable point is the funding structure. A large share of the total investment does not come solely from the state budget but it is mobilized from non-state sources. This reflects a policy approach that avoids replacing the market, instead using public investment to lead the way, open up space, and build confidence, thereby drawing in private sector investment.

How will large-scale infrastructure investment affect growth, employment, and the economy’s momentum over the medium and long term?

Large-scale infrastructure investment typically generates both stimulus and productivity effects. The stimulus effect refers to short-term impacts on growth and employment. As projects are rolled out, demand rises for construction materials, building and installation work, transport, technical services, and a wide range of supply-chain activities. This creates jobs and income, which in turn supports broader consumption.

Many international studies show that public investment tends to have a higher output multiplier than recurrent spending, and that it is more likely to crowd in private investment when projects are well selected and effectively implemented.

The second effect is on productivity, which materializes over the medium and long term as infrastructure upgrades enhance the economy’s productive capacity.

Improvements in roads, seaports, airports, energy systems, urban infrastructure, and digital infrastructure help reduce logistics costs and delivery times, lower the risk of supply-chain disruptions, expand market access, and, most importantly, raise national productivity and competitiveness.

At its core, better infrastructure enables businesses to generate more value from the same level of effort.

That said, whether infrastructure investment truly delivers a growth boost depends heavily on project selection and implementation quality. If projects face delays, cost overruns, or weak connectivity upon completion, or if institutional bottlenecks are not addressed, the overall impact will be diminished.

How should 'empowering' the private sector in infrastructure projects be properly understood and implemented?

Empowerment should not be interpreted simply as loosening oversight or leaving companies to manage projects on their own. In its proper sense, empowerment means granting firms genuine autonomy in project design, construction organization, technology selection, and schedule management, based on clearly defined objectives and output standards set by the state from the outset.

The government should avoid excessive intervention in implementation details, instead focusing on setting goals, monitoring outcomes, and strictly enforcing compliance in cases of violations.

Empowerment must also be accompanied by clear accountability. As firms are given greater autonomy, they must assume full responsibility for project timelines, costs, and quality.

Strong performance should be rewarded accordingly, while delays or substandard delivery should be met with appropriate sanctions.

What is the most important message the government is sending to businesses through this wave of large-scale infrastructure investment?

From a policy perspective, I believe the most important message the government is sending to businesses through this large-scale infrastructure push is its readiness to shift from a hands-on implementer to an enabling and guiding role.

By committing substantial public resources while expanding space for deeper private sector participation, the government is signaling that infrastructure is no longer a closed domain of the public sector. Instead, it is becoming a platform for long-term cooperation between the public and private sectors based on shared interests.

A second, equally important message concerns speed and efficiency. The simultaneous launch and roll-out of multiple projects indicate that the government expects rapid implementation, tangible results, and early contributions to growth.

In other words, the government is signaling that time is of the essence, and that participating firms must possess sufficiently strong organizational capacity, financial strength, and management capabilities to meet these demands.