New mechanisms and open policies trigger investment waves

The fact that large domestic and foreign corporations simultaneously proposed investing in metro, seaports or connecting roads shows that the confidence of the private sector, especially large enterprises, has returned.

The modern downtown area of ​​Ho Chi Minh City is developing along the Saigon River. (Photo: Hong Dat/VNA)

Vietnam is witnessing a “turning point” in infrastructure investment thinking. The fact that large domestic and foreign corporations simultaneously propose to invest in metro, seaports or connecting roads shows that the confidence of the private sector, especially large enterprises, has returned. This is not only a capital flow, but also a shift in model. Enterprises are not only contractors but also proactively propose financial, technological and management solutions.

From consistent policy

Recent infrastructure investment proposals from many large private enterprises are not only limited to new projects but also targeted at projects that have already been approved, such as metro line 2 (Ben Thanh - Tham Luong) of Ho Chi Minh City. Investors not only participate as contractors but also propose investment plans, capital mobilization, and even new forms of cooperation. This is a very positive signal, demonstrating the private sector's confidence in the development potential of urban transport infrastructure in Vietnam.

Talking to VNA reporters about recent infrastructure investment proposals, Dr. Nguyen Kim Duc, Deputy Director of the Institute for Regional Development Research and Consulting, Ho Chi Minh City University of Economics, said that Vietnam is witnessing a very vibrant "wave" of infrastructure investment proposals, especially in big cities like Ho Chi Minh City.

This is clearly demonstrated by the fact that many large domestic and international corporations from Vingroup, Sun Group, Thaco , Hoa Phat to joint ventures such as Power China-Fecon, have proposed to participate in key projects such as metro, seaports and connecting routes.

According to Mr. Bui Duy Hoang, Southern Institute of Social Sciences, the explosion of proposals for infrastructure investment, especially urban railways in Ho Chi Minh City, shows a new "wave" of domestic and foreign investors. Large corporations such as Vingroup, Thaco, Sun Group, Hoa Phat and international consortiums such as Power China-Fecon have simultaneously made proposals with specific capital plans, even linked to land funds or new-generation PPP and BT forms. This is not a random phenomenon, but the result of a combination of many factors.

Workers work at the construction site of the 110kV underground high-voltage cable line of the metro line No. 2 project. (Photo: Tien Luc/VNA)

According to Mr. Bui Duy Hoang, metro and urban infrastructure are identified as strategic priority areas, having a spillover effect on regional development. The financial and technical capacity of Vietnamese enterprises has matured, enough to participate in large-scale projects. The most important thing is that the new legal framework has removed long-standing "bottlenecks".

The Land Law and the Law amending and supplementing a number of articles of laws related to investment and business have clarified the mechanism for land allocation, land lease, and payment by land fund. The Housing Law and the Real Estate Business Law supplement the mechanism for capital mobilization and land fund exploitation associated with infrastructure projects. In particular, the Law on Credit Institutions strengthens the legal framework on credit and debt settlement, creating a smooth flow of capital. Thanks to that, legal and financial risks are significantly reduced, making large enterprises no longer passively "waiting for bids" but proactively propose strategic infrastructure projects - Mr. Hoang analyzed.

According to Associate Professor-PhD Nguyen Tan Vinh, Director of the Regional Political Academy II, there are many practical reasons promoting this "wave", that is, the good operation of Metro Line 1 has proven that the demand for urban railway travel is very large, central stations such as Ben Thanh, Ba Son, and the City Theater all create great attractions. In addition, new development spaces such as Can Gio, Thu Thiem, Long Thanh, Ring Road 4 - especially the metro line connecting the region and expanding the urban area - create "long-term land funds", the value of real estate associated with public infrastructure increases, making investment opportunities much more attractive. Along with that is the participation of large domestic investors with strong financial capacity, ready to negotiate capital plans and clear implementation plans, not just preliminary proposals.

In the long term, Associate Professor - Doctor Nguyen Tan Vinh said that the simultaneous participation of large corporations and joint ventures shows that the Vietnamese infrastructure market - especially Ho Chi Minh City and the Southeast region - is changing to a new stage. Higher competition, regional connectivity is put on top, investors not only seek profits but also want to accompany the urbanization strategy, sustainable development and serve environmental goals - public transport... This is a positive signal opening up new prospects if the projects are implemented synchronously, transparently and have high implementation capacity.

The emergence of the current "wave" of infrastructure investment is first and foremost a direct result of our Party's consistent policy on private economic development - Associate Professor, Doctor Nguyen Tan Vinh affirmed.

New mechanisms and policies have created strong appeal for infrastructure. The PPP Law, the 2024 Land Law, along with Resolution 188/2025/QH15 on urban railways in Hanoi and Ho Chi Minh City have removed many bottlenecks, from the new BT mechanism, TOD mechanism, to shortening procedures and expanding capital mobilization space. Thanks to these changes, infrastructure projects are no longer just a "budget burden," but have become attractive investment and business opportunities for enterprises.

The combination of two factors, the correct political orientation and timely institutional reform, has “unleashed” the private sector, encouraging them to boldly engage in strategic infrastructure projects. This is a clear demonstration of Vietnam’s spirit of innovation and integration in the current period. If the policy of developing the private economy and the new policy framework create the “foundation”, then the simplification of procedures and the empowerment of enterprises are the “direct driving factors” of the current wave of investment.

To clear up the mechanism clearly

Previously, infrastructure projects often took a lot of time in the preparation, appraisal, and approval stages, causing high opportunity costs for businesses. Now, with Resolution 188/2025/QH15, many procedural steps have been shortened. Some projects do not need to go through the "investment policy" round, appraisal rights are decentralized to localities, and at the same time, it is allowed to apply designated bidding in special cases. Businesses can get to the calculation table and implement faster, instead of waiting for a long time.

In fact, the metro line No. 1 project (Ben Thanh-Suoi Tien) was approved in 2007, but it took 17 years from approval to commercial operation (December 22, 2024) because it had to go through many rounds of appraisal, adjustment, site clearance, change of capital sources, and design changes. Now, with the new mechanism, Metro line No. 2 (Ben Thanh-Tham Luong) is expected to start construction at the end of 2025, and the investment preparation phase (design, consulting bidding, equipment) is being accelerated.

Passengers take the metro train from Thu Duc to downtown Ho Chi Minh City. (Photo: Hong Dat/VNA)

With these changes, businesses no longer have to “wait for decades” to implement a project after having an idea, but can immediately enter the technical steps, find partners, and apply capital. This is the factor that makes proposals now come with a pre-feasibility report, overall design, and capital model proposal - proving that businesses are co-subjects, not just policy beneficiaries.

Not only that, the new PPP (public-private partnership) and BT (build-transfer) mechanisms also create flexible space for businesses to proactively design capital plans, manage risks, and participate right from the idea stage. This helps businesses feel that they are truly "co-creators" with the State in infrastructure development, not just passive "contractors". It is this shift - from strict procedural management to results- and partner-based management - that has breathed new life into the wave of project proposals we are witnessing - Associate Professor - Doctor Nguyen Tan Vinh commented.

According to Dr. Nguyen Kim Duc, Deputy Director of the Institute for Regional Development Research and Consulting, Ho Chi Minh City University of Economics, it is clear that this investment wave did not appear naturally, but was the result of a "policy combination" that had been prepared for many years.

The most important factors are regional development and connectivity. The Politburo issued 6 Resolutions on the direction of socio-economic development, ensuring national defense and security of 6 regions. The effective operation of the Regional Coordination Council as well as the emphasis on regional connectivity through infrastructure connection are the starting point for today's new wave.

Macroeconomic stability, Vietnam's economy has maintained stability in the context of global uncertainty, many large transport projects have started and completed, creating "spreading confidence" for the private sector. Resolution 68 is a breakthrough in identifying the private economy as the most important driving force of the economy, along with a mechanism to protect property rights and business freedom. In order for this "investment wave" to not only stop at proposals but soon become specific projects, there must be clear mechanisms soon, and at the same time, key groups of solutions must be implemented in the short term as well as in the long term.

According to Associate Professor-PhD Nguyen Tan Vinh, it is necessary to soon complete the institutions and legal framework, improve the state management capacity, diversify capital sources and risk sharing mechanisms, and improve the capacity of domestic enterprises and supply chains. Metro, highway or riverside boulevard projects all require high technology and strict system safety. Encouraging joint ventures between domestic and international enterprises, combined with the requirements of technology transfer and human resource training, is very necessary. Ensuring sustainable development factors so that all infrastructure projects must be associated with environmental impact assessment, ecological conservation and move towards the TOD model - compact urban development around metro stations.

If the state is considered the “conductor,” then transparent mechanisms, effective management, sound finance, strong enterprises and sustainable development are the “five instruments” that need to be harmoniously coordinated so that Vietnam’s infrastructure investment “symphony” can truly resonate strongly.

Source: https://baolamdong.vn/co-che-moi-chinh-sach-thong-thoang-kich-hoat-song-dau-tu-392470.html