According to the Ministry of Finance, by the end of 2024, public investment disbursed reached 548.569 trillion VND, achieving 72.9% of the plan. Although lower than in 2023, the reduced ICOR ratio indicates more efficient investment use. PSI’s report emphasizes the lesson from China’s growth phase (1999-2007), significant in promoting growth through public investment. Vietnam is also focusing on public investment, viewing it as a growth driver with an 8% GDP target for 2025.
Public debt stands at 36-37% of GDP, which is safe compared to the 60% ceiling. PSI acknowledges ample fiscal space to implement public investment policies. The State Bank aims for a 16% credit growth in 2025, creating favorable conditions for public investment.
Amendments to the Public Investment Law and related decrees will improve the disbursement pace. In 2025, especially in transport, many projects will be accelerated, including the North-South high-speed railway and Ninh Thuan Nuclear Power Plant. According to PSI, companies like HHV, VCG, CTD, and FCN will benefit from this wave of investment.
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