Inside Infrastructure: The view from Vietnam

Hot topics

• Private Sector to Take Lead Role in Vietnam’s Economic Development: Vietnam’s private sector is now considered as “the most important driving force of the national economy”, according to a new government resolution (Resolution No. 68-NQ/TW ). With this announcement, the government redefines the relationship between the State and private companies, positioning the private sector as a leader in economic advancement and ostensibly levelling the playing field vis-à-vis State-run companies. Importantly for foreign infrastructure investors, Resolution 68 envisions increased involvement, including via public private partnerships, from private firms in infrastructure and transport, sectors traditionally dominated by State-owned companies. Resolution 68 also highlights Vietnam’s willingness to attract capital and expertise into high-growth industries like renewable energy and green infrastructure. Underlying these goals is an increased focus on improving legal clarity, transparency and administrative processes which, if properly implemented, will drastically improve firms’ access to projects. Whilst Resolution 68 is not strictly law yet and requires a range of implementing legislation, it represents the possibility of new opportunities for foreign infrastructure investors who may, at present, view Vietnam as too administratively complex to consider.
• North-South High-Speed Railway. As a direct effect of Resolution 68, a number of private companies have registered their interest in key infrastructure projects, including in Vietnam’s proposed US$67.34 billion North-South High-Speed railway. The 1,500km line will have a top speed of 350km/h and pass through 20 provinces and cities between Hanoi and Ho Chi Minh City. Currently, both VinSpeed JSC (part of Vingroup) and Trường Hải Group (THACO) have officially sent proposals to the government. Siemens and a US/Vietnamese alliance between Mekolo and Great USA have also expressed interest.  
• Nuclear Energy Ambitions. In June, the National Assembly of Vietnam officially passed the amended Law on Atomic Energy, which will take effect on 1 January 2026. The new law represents a significant step towards Vietnam’s nuclear goals, which include the construction of two nuclear plants by 2030. Whilst primary investors in these projects will be State-owned Vietnam Electricity and PetroVietnam, foreign companies such as Rosatom, EDF, Westinghouse, KEPCO and Hitachi are reportedly considering investment. 
• Substantial Changes to Vietnam’s Administrative Landscape: Recent government reform initiatives are targeting drastic improvement to Vietnam’s business environment through lessening the administrative burden. The reforms include: (i) a reduction of provincial-led administrative units from 63 to 34; (ii) a reduction of government agencies from 30 to 21; and (iii) the adoption of a national public service portal.  The ambitious reforms are still in the early stages of implementation and will likely cause some initial uncertainty as the regulatory and administrative landscapes develop. However, there is general agreement within local and international business communities that the proposals have the potential to improve the investment environment and place Vietnam in a stronger position to attract FDI and meet its development targets.
• Hanoi to Ban Fossil-fuel Motorbikes From Inner City by July 2026. Hanoi plans to ban gas-powered motorbikes from the inner-city starting July 2026 as part of a national push to tackle severe air and water pollution. While electric vehicle use in Vietnam is growing, most of Hanoi’s eight million residents still rely on motorbikes as a crucial part of daily life. The shift to cleaner transport will require major investments in electricity infrastructure, with Vietnam needing to spend around US$12.8 billion per year on power generation and grid upgrades through 2030.
• US–Vietnam Trade Deal. President Trump announced a trade framework between the U.S. and Vietnam which imposes a 20% tariff on most Vietnamese exports and a 40% tariff on goods deemed transshipped from third countries. Vietnam has been approaching trade negotiations proactively and is, at the time of writing, expected to join the growing list of countries with finalised US trade deals. 

Legal and Regulatory Developments 

• Vietnam 2024 Geology and Mineral Law 

The 2024 Geology and Mineral Law, adopted on 29 November 2024 and effective from 1 July 2025, introduces significant updates to its 2010 predecessor. Key changes include the classification of mineral resources into four defined groups and a clearer outline of the State’s responsibilities in geological exploration and mineral exploitation. Together with two draft implementing decrees currently under discussion, the new law also sets out conditions for foreign investors in Vietnam’s mining sector. Depending on the scope and location of a project, license applications will be assessed and granted by either the Ministry of Natural Resources and Environment (now merged with the Ministry of Agriculture and Rural Development to create the Ministry of Agriculture and Environment) or the relevant provincial People’s Committee.

Overall, the 2024 Law is expected to establish a more comprehensive legal framework, enhance the efficiency of state management over mineral resources and promote geological surveys and the development of the mining industry.

• Vietnam’s Amended National Power Plan VIII

On 15 April 2025, Vietnam Prime Minister issued Decision 768 approving Vietnam's Amended National Power Development Plan VIII for 2021-2030 (the Amended PDP VIII), with vision to 2050. The objective is the Amended PDP VIII is to ensure sufficient electricity supply to meet domestic demand and support socio-economic development goals, with an average GDP growth rate of approximately 10.0% per year during 2026–2030, and around 7.5% per year during 2031–2050. 

The Amended PDP VIII significantly raises Vietnam’s installed capacity targets to meet projected economic growth and rising power demand. By 2030, total capacity is expected to reach between 183,291 MW and 236,363 MW, an increase of up to 57% compared to the original PDP VIII. By 2050, the plan projects capacity to grow to 774,503 MW – 838,681 MW, nearly double the original target.

Vietnam is also restructuring its power generation mix to increase the share of renewable energy and new energy sources and reduce reliance on coal.

Latest Infrastructure Deals and Opportunities

Internet and Technology

• Qualcomm to launch AI R&D center in Vietnam. Qualcomm launched an AI research & development center in Vietnam, after acquiring a 65% stake in AI company MovianAI from Vingroup. 
• Viettel and Korea Telecom’ Strategic Partnership. Viettel and Korea Telecom signed a deal on 26 May to accelerate AI transformation, enhancing Vietnam's technological competitiveness in the region. 

Energy

• EDF’s Proposal to Invest in Nuclear Power in Vietnam. During a meeting with Vietnam Prime Minister on 11 June, EDF Chairman and CEO expressed the company’s desire to collaborate with Vietnamese partners in nuclear power, renewable energy, and other sectors.
• O Mon 2 CCGT Out to Banks. A Marubeni-led team was sounding out banks and ECAs to raise approximately $800 million of debt for the 1,050MW O Mon 2 combined cycle gas turbine (CCGT) plant in Vietnam. 
• SK Group’s $10 Billion LNG Investment Proposal in Vietnam. South Korea’s SK Group has proposed over $10 billion in power infrastructure projects across Vietnam, aiming to transform the country into a regional energy and logistics powerhouse. The group is exploring the development of three special energy-industrial clusters (SEICs), the core being LNG projects. SK aims to roll out a comprehensive energy solution package across Vietnam. 
• EPC Contract Signed for O Mon 4 Thermal Power Project. A consortium of South Korea's Doosan Enerbility and Vietnam's Power Engineering Consulting JSC 2 (PECC2) has been selected as the EPC contractor for this project via international open bidding. The Block B-O Mon power-gas project chain includes component projects: offshore gas exploitation at Block B, Block B-O Mon gas pipeline, and a thermal power plant cluster in the southern city of Can Tho. 
• Thai Binh LNG power Plant Set for Groundbreaking in Late 2025.  The US$2.56 billion LNG-fueled power project in Thai Binh province, northern Vietnam, is scheduled to break ground later this year. The plant will feature two turbines, with the first expected to come online in Q4 2028 and the second in Q4 2029. The project is jointly invested by Tokyo Gas (40%), Kyuden Group (30%), and Truong Thanh Vietnam Group (30%). 
• HDF Energy and EVNSPC’s MOU to Boost Green Hydrogen Power in Vietnam. Under the MoU, HDF Energy and Southern Power Corporation (EVNSPC) will collaborate on technical and feasibility studies, identify potential project sites, coordinate with local authorities and align investment and engineering resources. 
• Hundreds of wind, solar power investors’ petition Vietnam authorities to uphold feed-in tariffs. Investors and financial institutions related to 173 wind and solar power projects in Vietnam have called on the government to maintain the feed-in tariffs (FIT) and commercial operation dates (COD) previously recognized. 

Oil & Gas

• Vietnam’s Call for Acceleration of the Blue Whale Project. Vietnam has called on Exxon Mobil to accelerate the delayed Blue Whale gas field project in accordance with contractual commitments. The project, originally slated to begin operations in 2023, has seen minimal progress, with the timeline now pushed to 2028. This delay is affecting the approval and implementation of downstream gas-fired power projects. 
• US's Excelerate Energy’s intention to turn Vietnam into LNG hub for ASEAN. The US LNG company aims to establish a joint venture with Vietnamese partners to expand its market, turning Vietnam into an LNG distribution centre of ASEAN. 
• EnQuest Completes Acquisition of Harbour Energy’s Vietnam Asset. On 10 July, EnQuest PLC announced that it has completed the acquisition of Harbor Energy's business in Vietnam, equating to a 53,125 per cent equity interest in the Chim Sao and Dua production fields offshore Vung Tau. 

Transport

• Jardine Matheson’s Continued Investment in THACO. British conglomerate Jardine Matheson has expressed a willingness to serve as a key financial investor if THACO’s proposed north–south high-speed railway project is approved. 
• Hanoi Approves 8 New Metro Lines. The city will develop an underground metro system with eight major lines totalling over 320km, including two airport routes, aiming to ease congestion and modernize urban transit. At the centre of the plan is an ambitious metro system totalling 320.25 kilometres in length, including 81.2km of underground tracks and 68 underground stations, out of 191 stations in total. 

Aviation

• Airbus and Safran Exploring Vietnam Expansion Opportunities. Leaders of both companies expressed with the Vietnam Prime Minister their strong interest in expanding their operations in Vietnam and proposed collaboration initiatives with the Vietnamese government and local businesses. 
• Sun Phu Quoc Airways to Receive Air Transport License. Sun PhuQuoc Airways, a subsidiary of resorts and theme parks developer Sun Group, has received the license to set up Vietnam’s next carrier with the same name.

Ports

• Can Gio Port Added to Vietnam’s Seaport Development Plan. The Can Gio International Transshipment Port project in Ho Chi Minh City has advanced with its official inclusion in Vietnam’s national seaport development plan. Previously, the Prime Minister approved the project’s investment policy, which requires a minimum investment of VND50 trillion (US$1.95 billion) and grants a 50-year operational term.
• CMA CGM and Saigon Newport to Develop a US$600 million Deep-Water Terminal in Hai Phong. The project, located at Lach Huyen terminals 7 and 8, will have a combined capacity of 1.9 million TEU and is scheduled to open in 2028. 
• Da Nang City Calling of Investment in a US$209 million LNG, LPG Terminal Project. The project aims to develop critical infrastructure for the storage and distribution of LNG and liquefied petroleum gas (LPG), supporting both regional and national energy supply chains. It also aligns with Vietnam’s broader strategy to enhance specialized logistics systems and energy security. 

Mining

• LS Eco Energy’s Rare Earth Investment Plan in Vietnam. LS Eco Energy, a subsidiary of South Korea’s LS Cable & System, is pursuing investment in high-potential rare earth mines in Vietnam. The move follows legal complications involving its former local partner and reflects the company’s continued interest in establishing a stable supply chain for critical minerals. 
• Vietnam’s Rising Profile in the Global Rare Earth Market. Amid global supply chain disruptions, Vietnam has emerged as a focus for international investors in rare earths. With substantial reserves and growing export volumes, the country is actively attracting foreign investment to modernize its mining and processing capabilities. 

Real Estate

• Bid Opens for US$2 Billion Tourism-Casino Complex in Quang Ninh. Investors have been invited to participate in a large-scale tourism and casino complex project valued at US$2 billion, located in the strategic Van Don Economic Zone. The proposed development will cover more than 244.45 hectares, including 62.08 hectares of protected natural forest, which will be preserved in its current state. 

And finally, Real Asset or Fake News?

Well done to everyone who didn't fall for the idea last week that the Brits are a nation of optimists….As we head into our summer break this week’s quiz is focused on soaking up the sunshine with some stunning solar power stats. But which one is seems a little shady?

1. One fine day: The amount of solar energy that hits Earth in just one hour could satisfy all human energy needs for a year.
2. Cheap and cheerful: In many regions, solar power has become the cheapest way to generate electricity.
3. To infinity and beyond: The International Space Station is powered entirely by solar energy relying completely on its solar arrays to produce electricity for its systems and research experiments.
4. Moonshine: Solar panels generate more electricity when they are angled directly toward the moon at night.
5. Green sunshine: End-of-life solar panels can be recycled to recover up to 95% of certain materials, supporting a circular economy.

We will be back in September with the answer … but if you can't wait until then feel free to reach out to us directly.  And have a wonderful summer!