by Hoàng Hà

In an ambitious push for sustainable economic growth, the Vietnamese government is encouraging domestic enterprises to take part in key national infrastructure projects, marking a significant step towards a self-sufficient economy. 

With a target GDP growth rate of at least 8 per cent for 2025 and a vision for double-digit growth in the years to follow, Việt Nam is gearing up to fulfil this ambitious goal through a series of transformative infrastructure developments.

The government has set its sights on accelerating large-scale infrastructure projects as a critical component of its economic strategy. 

These projects span various sectors, including expressway, high-speed railways, digital infrastructure, renewable energy, and nuclear power. 

Key to this vision is the participation of both state-owned and private enterprises, all contributing to these monumental projects.

Since early this year, Prime Minister Phạm Minh Chính has had various meetings and discussions with leading corporations, underscoring the government’s push for evermore private sector involvement in national economic development. 

The response from Việt Nam's top business leaders has been nothing short of enthusiastic. 

Trần Bá Dương, chairman of Trường Hải Group (THACO), has expressed the group's readiness to engage in the urban railway project, particularly in producing train cars and steel components. 

"Our goal is to reduce costs, showcase the value of Vietnamese products, and prove that our enterprises can meet high-quality standards," Dương said, adding that THACO also plans to help integrate small- and medium-sized enterprises into the production chain.

Meanwhile, Hòa Phát Group, Southeast Asia’s largest steel producer, is committing to meet the steel demands of the high-speed railway projects. 

According to the Prime Minister's report, in the period of 2025-2030, Việt Nam will have many very large public investment projects, especially the high-speed railway projects. They include the Hà Nội and HCM City urban railway projects, the project connecting China's railways to Hà Nội-Lào Cai, Lào Cai-Hải Phòng-Quảng Ninh, and Hà Nội-Lạng Sơn railway routes.

Trần Đình Long, chairman of Hòa Phát Group, said: "This is a great opportunity for domestic enterprises. Hòa Phát has pledged to supply high-quality steel for key railway components, including train axles and accessories, ensuring compliance with international standards." 

"The group is prepared to invest in a new rail manufacturing facility in Phú Yên Province, with an investment totalling VNĐ10 trillion. This move aims to meet the nation's growing demand for high-quality steel while reducing reliance on steel imports."

Besides that, the group has set a plan to negotiate with partners from Europe to carry out technological and technical transfers and supply steel rail production equipment for railways.

The government's vision for development extends beyond just traditional industries. Vingroup, Việt Nam’s leading conglomerate, is committed to creating a green production ecosystem, aligning industrial development with environmental protection. 

Similarly, BRG Group is set to build a carbon-neutral smart city in the northern neighbourhood of Hà Nội, showcasing Việt Nam’s commitment to sustainable urban growth.

The digital economy also figures prominently in Việt Nam's development plans. CMC Technology Group, a key player in the digital transformation space, is spearheading efforts to develop cloud computing infrastructure. 

CMC plans to invest in an 80 MW cloud computing centre by 2028, positioning itself as the leading provider of cloud services in Việt Nam. Furthermore, the group is working towards creating an AI knowledge platform to position Việt Nam as a digital technology leader by 2045.

Việt Nam’s small- and medium-sized enterprises (SMEs) are also at the heart of this transformation. Contributing approximately 60 per cent of the nation’s GDP, 98 per cent of export turnover, and employing around 85 per cent of the workforce, SMEs are a driving force in the country's economic growth.

The government’s supportive policies are encouraging these enterprises to join in the large projects. 

Breakthrough policies

Private economic sector leaders, such as Nguyễn Phương Thảo, permanent vice chairwoman of HDBank and chairwoman of Vietjet, express their optimism, underscoring the crucial role of private businesses in national economic development.

Thảo applauded the government’s decision to establish a steering committee for private economic development, which she believes will foster a more transparent and supportive legal environment for private enterprises. 

“This move signals a clear message that private enterprises will be better supported, making it easier for them to contribute to national goals,” she said.

To achieve these ambitions, experts stress the importance of a compatible strategy involving the government, enterprises and society. 

This strategy should focus on creating favourable institutions, bolstering resources, and nurturing an innovative entrepreneurial spirit. A transparent and stable policy environment is crucial for the sustained growth of private enterprises, enabling them to invest confidently in long-term projects and innovations.

In line with this, the Vietnamese government is drafting a new resolution to enhance the legal framework for the private economy. The other factor is to remove barriers in capital access, market penetration, and bureaucratic procedures, which have often hindered the growth of small and medium enterprises. 

A focus on high-quality human resources, especially in fields like technology and corporate governance, is also key to fostering a competitive and innovative private sector.

To compete on the global stage, Vietnamese enterprises must build a strong foundation based on technological innovation, product quality, and modern management systems. 

Nguyễn Hồng Thái, PhD, at the University of Transport, said mastering new technologies through strategic partnerships and technology transfer would be crucial for domestic enterprises to thrive.

Nguyễn Chiến Thắng, PhD, director of the Institute of European Studies, emphasised the importance of empowering domestic enterprises to undertake large-scale projects. 

He argued that by participating in high-tech projects, local enterprises could improve their production capabilities, create high-quality jobs, and contribute to the national economy. Furthermore, such projects would help local companies build competitive advantages that extend far beyond the borders of Việt Nam.

The push for national enterprises to take on large-scale projects represents more than just an economic strategy; it is part of a broader vision to develop an economically self-reliant Việt Nam. 

By tapping into the potential of its domestic enterprises, Việt Nam can reduce its reliance on foreign imports, elevate its technological capabilities, and foster a thriving, globally competitive economy.

As Việt Nam continues to move forward with its ambitious infrastructure and economic plans, the participation of domestic enterprises in these large projects will play a key role in shaping the country’s future - both regionally and internationally, according to experts. 

With the right support from the government and a collective commitment from the business community, Việt Nam is poised to emerge as a robust economic powerhouse, capable of competing with the world's developed nations. VNS