To maintain an 8% growth, Vietnam has launched an "infrastructure frenzy," initiating 250 projects at once

To ensure the achievement of the annual economic growth target, Vietnam is injecting a strong boost into its economy through an unprecedented wave of infrastructure construction. On Tuesday, August 19, Vietnam held groundbreaking and completion ceremonies for approximately 250 large-scale projects nationwide, including key projects such as the Rach Mieu 2 Bridge in the Mekong Delta, the Saigon Coastal International Financial Center, and the National Exhibition Center in Hanoi, covering various fields such as transportation, urban development, and technological research and development. According to a statement from the Vietnamese government website, this move is a key strategic deployment to achieve this year's GDP growth target, with a total investment expected to reach 12.8 quadrillion Vietnamese dong (approximately 50 billion USD). Among these, national funds will support 129 projects with an investment of about 18 billion USD, while 121 projects funded by other sources (including foreign companies) will have an investment of about 30.5 billion USD . Currently, Vietnam is under pressure to achieve an annual GDP growth target of at least 8.3%-8.5%, while also needing to negotiate the details of a trade agreement with the United States that imposes a 20% tariff on Vietnamese goods. In this context, large-scale infrastructure investment has become a key tool for the government to stimulate the economy. Vietnamese Prime Minister Pham Minh Chinh stated that these projects will change the landscape of the country's strategic infrastructure. Private Capital Dominates Investment Structure Of the total investment of approximately 50 billion USD, private and foreign direct investment dominates, accounting for 63%, while national funds only account for 37%. This structure shows that Vietnam is actively mobilizing private and international capital to alleviate pressure on the national budget. According to estimates from the Vietnamese Ministry of Construction, these projects are expected to contribute more than 18% to the GDP by 2025, and over 20% in the following years, highlighting their importance as a long-term economic engine. It is reported that among the 250 projects, 89 are ready for completion, while 161 will begin construction. Policy Reforms Accelerate Project Progress Accelerating the disbursement and utilization of public investment funds has become the top priority for the Vietnamese government. According to analysis from the General Statistics Office of Vietnam, this wave of investment is the core driving force behind national economic growth. If the government can meet the annual public investment disbursement target, it is expected to contribute more than 2 percentage points to the national GDP growth rate. The Vietnamese government's public investment disbursement target for 2025 exceeds 9 quadrillion Vietnamese dong (approximately 35 billion USD), a 40% increase compared to 2024. However, as of July 2025, Vietnam's annual public investment plan has only completed 40.7%, meaning that nearly 60% of the remaining funds must be disbursed in the last five months of the year. To address this challenge, Vietnam implemented a new Public Investment Law on January 1, 2025, aimed at improving the efficiency of fund disbursement through decentralization and streamlining project approval processes. Economist Le Duy Binh pointed out that the simultaneous advancement of projects in 34 provinces and cities reflects an unprecedented level of coordination and urgency among Vietnam's ministries, agencies, and local governments. The progress of public investment disbursement has become a key indicator of the leadership capabilities of government departments. ** Economic Spillover Effects of the Infrastructure Boom The launch of this large-scale project is not only a short-term economic stimulus measure but is also seen as a structural strategic layout. Dr. Nguyen Quoc Viet, a public policy expert at the University of Economics, Vietnam National University, believes that choosing to hold the large-scale launch ceremony on August 19 carries significant symbolic meaning, sending a clear signal to domestic and foreign investors about Vietnam's determination to improve the investment environment and fulfill development commitments. In the long run, these projects will generate positive spillover effects. Media opinions suggest that improvements in infrastructure will effectively reduce logistics costs, accelerate the circulation of goods and services, thereby enhancing overall economic efficiency. This will help Vietnam attract more foreign direct investment in high-tech sectors and improve local productivity through exposure to global technology and management standards. Additionally, the plan emphasizes social inclusivity, covering projects such as affordable housing, smart cities, upgrades to healthcare and education facilities, and cultural tourism development. As the projects progress, demand for cement, steel, machinery, and transportation services will surge, stimulating the development of related supporting industries.