The Vietnamese Government would prioritize investment in transport infrastructure, especially the North-South Expressway, said Minister of Planning and Investment Nguyen Chi Dung at the agency’s year-end meeting this week.

Minister of Planning and Investment Nguyen Chi Dung. Photo: MPI

Dung stated that the government partially addressed the issues of scattered and insufficient investment in public infrastructure last year and is focusing its resources on investing in large-scale projects such as inter-regional connectivity and coastal highways. These projects are seen as a breakthrough in the country's infrastructure development at both national and local levels.

As a result, the number of projects funded by the state budget in the 2021-2025 period has decreased by nearly 42% compared to the previous five years.

“This reduction aims to more strategically allocate resources and investments to the fundamental infrastructure that supports the economy,” he said.

Vietnam has set a target of 3,000 kilometers of highways by 2025, rising to 5,000 kilometers by 2030. The Government also aims to launch the North-South high-speed railway project by 2030 to enhance the national multi-modal transport network and improve the country's competitiveness.

In late November 2023, the Ministry of Transport sought opinions on three scenarios for the North-South railway project: one with passenger trains running at 350 km/h, one for passengers only, and one for passengers and freight.

At the conference, Dung expressed concern about how to make more efficient use of resources and leverage the roles of state-owned enterprises, private enterprises, and attract foreign investment in the current situation.

As national governance, decentralization, a delegation of powers, and regional connectivity have not yet become the main driving force for rapid and sustainable development, Dung stressed the importance of reducing conditions and permits and improving the business environment to overcome difficulties for businesses and projects.

The North-South Expressway. Source: Ministry of Transport

In 2023, FDI attraction reached $36.6 billion, an increase of over 32%, with many high-quality projects in phone manufacturing, electronic components, and chip production. Disbursed FDI exceeded $23 billion, the highest to date.

Public investment disbursements were a bright spot in 2023, improving significantly throughout the year to reach an annual rate of about 95%, higher than in 2022.

2024 is expected to be a breakthrough year for the 5-year socio-economic development plan (2021-2025).

Speaking at the conference, Prime Minister Pham Minh Chinh emphasized the need for the Ministry of Planning and Investment to make efforts in macroeconomic management, improve mechanisms to implement the three strategic breakthroughs (institutional, infrastructure, and human resources), and effectively mobilize and utilize investment resources for development.

"It is necessary to promote the rapid and strong disbursement of public investment from early 2024, avoiding scattered and wasteful investments," he said.

Additionally, the Ministry advises on new economic models, researches amendments, and supplements investment and trade agreements to adapt to the new situation.

In this regard, Dung expressed determination to boost public investment disbursement and achieve over 95% of the Prime Minister's assigned plan for this year. "Public investment capital must act as a catalyst to attract investment from other economic components," he added.

The ministry will also study and develop a plan for a regional and international financial center and a decree on the establishment, management, and use of the Investment Support Fund.