Vietnam is stepping into a new chapter of public investment in 2025. With the government pushing ambitious disbursement targets, a new Public Investment Law, and fresh incentives for high-tech investors, opportunities are expanding but so are the risks. 

From infrastructure megaprojects to SOE privatization and foreign exchange management, this article unpacks the legal reforms and hidden challenges that will shape Vietnam’s investment climate in the years ahead.

Key Takeaways:

• Vietnam’s 2024 Law on Public Investment, implemented in 2025, decentralizes authority to improve the investment climate and speed up project approvals.
• The government is aggressively pushing to disburse its 2025 public investment capital, creating massive opportunities in infrastructure, which is vital for capitalizing on new free trade agreements.
• Public investment is of vital importance for economic growth and development, supporting sectors such as manufacturing, energy, and infrastructure.
• A new Investment Support Fund directly assists high-tech investors, linking financial incentives to responsible business conduct and offsetting global minimum tax impacts.
• Large-scale disbursement can affect foreign currency stability, but the government is implementing safeguards to protect foreign investors.
• Success in large projects often requires partnering with State Owned Enterprises (SOEs), which demands a deep understanding of the local regulatory system and the Public Private Partnership Law.

I. Vietnam’s New Legal Framework for Public Investment

Last year, during a strategy session with one of our Fortune Global 500 clients, the conversation wasn’t about market size or growth potential. What kept their leadership awake at night were the same issues I’ve seen across 3,000+ projects in Vietnam: delayed approvals, unclear regulations, and compliance risks that emerge only after millions have already been committed. 

That’s why the 2024 Law on Public Investment, passed by the National Assembly on November 29, 2024, and effective January 1, 2025, is such a turning point. It replaces the 2019 version, and from what I’ve seen on the ground, this change is already solving problems that frustrated investors for years.

By pushing decentralization, the law gives ministries, agencies, and provincial leaders more power, and more accountability. For example, separating compensation, resettlement, and site clearance into independent project components has already cut months off approval timelines for some of our clients in transport infrastructure.

The government also set a very clear benchmark: a 100% disbursement target for 2025, equivalent to nearly VND 790.72 trillion in public investment capital (Vietnamnews, 2025). To put that in perspective, according to an article from VietnamNews (2025), disbursement in 2024 reached only 72.9% of the plan, or about VND 548.6 trillion.

When I explain this to clients, I highlight that this isn’t just another number, and it’s a political commitment to push projects forward faster and remove the bottlenecks that used to stall investment.

From a client protection perspective, the most important part is that this law replaces what was once an opaque legal environment with a more transparent, accountable system. For foreign investors, that means fewer surprises. For local leaders, it means their reputation is tied to whether projects succeed or fail. 

For us at Viettonkin, it means we can stand with our clients and say with confidence: “The legal framework is finally catching up with the ambition of Vietnam’s growth.”

II. Disbursement Acceleration and Key Infrastructure Projects

The government’s target to disburse 100% of its public investment capital in 2025 is more than a political message - it’s a clear action plan. 

As reported by an article of Vietnamnews (2025), by the end of July 2025, disbursement had already reached 39.45% of the annual plan, compared to only 27.8% at the same point in 2024. 

That’s the strongest mid-year performance in recent years, driven by direct instructions from the Prime Minister and task forces assigned to remove bottlenecks. From a client perspective, this shows a system that is finally moving at the speed business requires.

The impact is most visible in infrastructure, where public funds are being concentrated on strategic, high-impact projects. As VietnamPlus (2025) reported, the government’s goal of over 3,000 km of expressways by 2025 is within reach, building on the 2,268 km already completed.

At the same time, Vietnam has approved an ambitious US$67 billion high-speed railway plan, a project expected to redefine logistics and industrial connectivity nationwide (Reuters, 2024). 

Together with Power Development Plan 8, these projects form the backbone for the next generation of industrial growth, while also reinforcing Vietnam’s commitment to the Energy Transition Partnership and its net-zero emissions target by 2050.

For investors, this infrastructure push reduces project risks and creates new certainty. From my project management experience, the ability to connect manufacturing hubs with ports and airports through modern highways and railways is exactly what foreign investors need to feel secure about long-term commitments in Vietnam. Combined with competitive labor costs and new legal reforms that increase contract flexibility, Vietnam’s investment climate is clearly stronger than many of its regional peers.

At the same time, the government is addressing global tax shifts by setting up an Investment Support Fund, financed through additional corporate income tax revenue. 

This fund is designed to stabilize the investment environment and attract high-tech, R&D, and strategic investors who might otherwise hesitate due to the global minimum tax. For our clients, this is more than a financial incentive - it’s a guarantee that Vietnam wants their investment here for the long run.

III. State-Owned Enterprises Privatization: Unlocking New Opportunities

Vietnam’s ongoing push to privatize State-Owned Enterprises (SOEs) is opening new doors for foreign investment and driving the next phase of economic growth. The government has made clear its intention to encourage foreign investment by gradually removing foreign ownership limits in key sectors, a move formally stated in the new Securities Law. 

This shift is particularly significant in industries such as energy, transportation, and other key infrastructure projects, where SOEs have traditionally held dominant positions.

Recent regulatory changes, including the Public Private Partnership Law, are designed to attract private sector participation and create a more level playing field for foreign investors. By allowing greater foreign ownership and supporting joint ventures in strategic sectors, Vietnam is signaling its commitment to a more open and competitive market. 

However, the privatization process has not been without challenges. Progress has been slower than many investors would like, and issues around transparency and accountability in SOE operations remain a concern.

Despite these hurdles, the ongoing reform of SOEs is expected to be a major catalyst for economic growth. As more sectors open up and foreign ownership limits are removed, foreign investors will find increased opportunities to participate in Vietnam’s most important projects. 

The continued evolution of the securities law and the implementation of the public private partnership law are clear signs that Vietnam is serious about creating a more attractive and dynamic investment environment.

IV. The Investment Support Fund: Redefining Responsible Business Conduct

One of the most strategic moves Vietnam has made is the creation of the Investment Support Fund. As reported by Reuters (2024), this fund was established to attract high-value foreign investment in the face of the new global minimum tax. 

It provides direct financial support to companies in high-tech and R&D, and it redefines what responsible business conduct means by aligning Vietnam’s public goals with global taxation reforms. 

Both the Vietnamese private sector and domestic companies are key beneficiaries of the fund and must comply with new standards under Vietnamese law and regulations. 

According to Deloitte (2025), the fund supports training and R&D, rewarding companies that invest in Vietnam’s long-term growth. This focus also reflects the trend of shifting foreign investment toward high-tech and sustainable sectors in line with Vietnam's economic strategy.

This focus on high-value investment is also reflected in the new securities law, designed to increase market transparency. This, combined with the benefits from multiple trade agreements, creates a compelling package. 

Recent data shows that FDI net inflows into Vietnam have continued to rise, and Vietnam's FDI stock stood at record levels in 2023, underscoring the country's attractiveness to global investors. 

It is this commitment to responsible business conduct that is transforming the Vietnamese economy and attracting a higher caliber of foreign investment.

V. Legal Safeguards, Intellectual Property, and a Modernizing Climate

As public investment brings more high-tech opportunities, protecting intellectual property rights has become critical. The reformed regulatory system is not just about speeding up projects; it’s also about building trust. 

Vietnam is strengthening its legal framework to safeguard patents, trademarks, and sensitive data, ensuring that the investment climate is secure for innovative companies. Many of the country’s free trade agreements include robust chapters on protecting intellectual property rights. 

In addition, Vietnam’s legislative commitments to environmental protection are reflected in laws and strategies aimed at waste management, pollution control, and sustainable development, though enforcement remains a practical challenge.

Furthermore, to align with standards set by advanced economies and its many trade agreements, Vietnam is moving away from restrictive labor practices. 

While some partners have raised concerns, the government is actively discussing whether to grant formal recognition to independent workers rights organizations. Ongoing efforts are also underway to address forced labor risks in supply chains, particularly in manufacturing sectors reliant on foreign inputs. 

These steps are crucial for long-term stability and ensuring that companies operating in Vietnam can adhere to global standards of responsible business conduct. Supply chain disruptions and regulatory gaps can create food security challenges and may pose food security challenges for Vietnam. 

Sector-specific reforms have also highlighted the importance of the power sector in the country’s regulatory and investment landscape. Vietnam’s climate and energy commitments are further demonstrated by Vietnam's energy transition efforts, which align with international standards and aim to advance sustainable energy initiatives.

VI. Navigating Foreign Exchange Management in Public Investment

Effective foreign exchange management is essential for maintaining Vietnam’s macroeconomic stability and ensuring the country remains attractive to foreign investors. 

The State Bank of Vietnam (SBV) plays a central role in overseeing foreign exchange policies, introducing new regulations and instruments to help stabilize the exchange rate and support a healthy investment climate. These efforts are particularly important as public investment projects often involve significant cross-border capital flows.

For foreign investors, navigating Vietnam’s foreign exchange system can still be challenging. Restrictive labor practices and complex administrative procedures can create hurdles when moving capital in and out of the country. 

Recognizing these issues, the government has taken steps to simplify foreign exchange procedures and introduce more flexible instruments, aiming to make the process more transparent and efficient.

While these reforms are a positive step, foreign exchange risks remain a key consideration for any public investment. Ongoing government efforts to streamline administrative procedures and maintain macroeconomic stability are crucial for building investor confidence. 

As Vietnam continues to modernize its regulatory framework, foreign investors can expect a more predictable and supportive environment for their public investment activities.

VII. Future Outlook: Vietnam’s Public Investment Trajectory Beyond 2025

Navigating Vietnam's investment landscape can be complex, but the path to success becomes clear when you know what to look for. To give you the clarity we provide our clients, the infographic below breaks down the key drivers, reforms, and real opportunities. Use it to see where to focus your energy, and where the hidden risks lie.

Beyond public investment, Vietnam’s real estate market is also undergoing major reforms. Read our latest article: “House and Land Pricing: What Investors Should Really Know About Vietnam’s Real Estate Reforms in 2025.”

Frequently Asked Questions

How does the new Public Investment Law actually help my project get approved faster?

From my experience across 3,000+ projects, the real breakthrough is decentralization. The new law empowers local authorities to make final decisions, which means the regulatory system is less congested. This shortens the chain of command and allows us to resolve issues directly with officials, cutting approval times significantly for foreign investors' public investment projects.

How does the new Investment Support Fund encourage responsible business conduct?

The fund provides targeted financial support for R&D, high-tech manufacturing, and workforce training. From a client protection perspective, this incentivizes enterprises engaged in sustainable, long-term growth rather than just seeking short-term gains. It aligns profitability with national development goals, which is the essence of responsible business conduct in modern FDI.

What are the biggest risks when partnering with State-Owned Enterprises (SOEs)?

The primary risks come from differences in compliance standards and navigating a complex regulatory system. SOEs are bound by specific state regulations that can be unfamiliar to foreign investors. Based on hundreds of client cases, the key is establishing a crystal-clear legal framework, often guided by the Public Private Partnership Law, to align expectations and prevent compliance gaps.