Việt Nam drives growth through reform, infrastructure

Việt Nam drives growth through reform, infrastructure

From a bold GDP growth target of at least 8 per cent to the acceleration of strategic infrastructure projects, Việt Nam is underscoring its determination to place institutional reforms at the forefront, while combining market-based solutions to create a sustainable foundation for long-term development.

Speakers at a panel discussion on unlocking green and sustainable capital for Vietnamese enterprises. — Photo thesaigontimes.vn

From a bold GDP growth target of at least 8 per cent to the acceleration of strategic infrastructure projects, Việt Nam is underscoring its determination to place institutional reforms at the forefront, while combining market-based solutions to create a sustainable foundation for long-term development, experts said at a conference in HCM City.

The conference, “Promoting Sustainable Infrastructure Investment in Việt Nam: Credit Guarantee Instruments – Success Stories and Breakthrough Potential”, was hosted for the first time by collaboration among PIDG, GuarantCo, Moody’s Ratings and VIS Rating on September 24 in HCM City.

The event brought together a wide range of experts, institutional investors, issuers and regulators to share strategic perspectives on the use of credit guarantees and credit ratings as tools to unlock capital flows, foster bond market innovation and advance sustainable capital markets.

Speaking at the conference, Phan Đức Hiếu, standing member of the National Assembly’s Economic Committee, stressed that to better understand the direction of socio-economic development, one must first look at Việt Nam’s mechanism for setting annual growth targets.

The National Assembly, he said, is always the body that establishes GDP growth benchmarks, providing the basis for the Government to formulate policies.

At the end of 2024, the GDP growth target for 2025 was initially set at 6.5–7 per cent.

However, by February 2025, the Government submitted a proposal to the National Assembly to revise it upward to at least 8 per cent, a move reflecting Việt Nam’s strong resolve despite a global environment filled with uncertainties.

To realise this ambition, the Government is deploying multiple measures, placing institutional reform and business environment improvement at the top of the agenda.

This approach aims to dismantle barriers, maximise facilitation for production and business activities, and enhance capital attraction.

Infrastructure development, particularly in the transport sector, has also been reaffirmed as a strategic pillar.

Large-scale, inter-regional projects of national importance, such as the North–South high-speed railway, key expressways and major airport systems, are being accelerated to create fresh momentum for growth.

In a landmark decision, the National Assembly has approved the investment policy for the North–South high-speed railway, with an estimated investment of around US$67 billion. Alongside this, numerous other infrastructure projects are in motion.

Simultaneously, revisions to the Law on Railways are under way to broaden the mobilisation of social resources, simplify investment and operational procedures, and strengthen the institutional framework that underpins infrastructure expansion.

“From 2025 onwards, institutional reforms are being placed as the foremost priority – they must go ahead to pave the way, rather than merely accompany growth. Thanks to this orientation, large-scale infrastructure projects can be implemented faster and more effectively, while consolidating international investors’ confidence in the consistency of Việt Nam’s policy framework,” Hiếu emphasised.

Looking at the decisions of the National Assembly and the Government in 2025, it is clear that institutional reform and infrastructure investment are being positioned at the centre, becoming indispensable conditions for achieving growth objectives.

Experts at the conference also discussed credit guarantees, credit ratings and green finance as solutions to mobilise social resources, build investor confidence and drive forward large-scale projects. 

Bizhub