Vietnam Infrastructure Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam Infrastructure Market Trends and Insights

Rapid Expansion of the Public-Sector CAPEX Pipeline

The government lifted its 2025 public investment allocation to USD 3.5 billion, 12% above 2024, and aims for full disbursement before year-end. Standardized construction cost norms under Decision 409/QĐ-BXD now guide spending and shrink approval backlogs. Eighty priority projects worth USD 18.4 billion were green-lit in April 2025, giving contractors forward visibility and boosting cement demand, which is expected to rise 15% annually through 2027. Higher public outlays stimulate jobs, materials, and equipment sales across the Vietnam infrastructure market. Continuous monitoring of disbursement progress is likely to keep pressure on ministries to maintain schedule discipline^{[1]Nguyen Thanh Lam, “Decision 409/QĐ-BXD on Construction Investment Rates,” Ministry of Construction, moc.gov.vn}.

Surge in Foreign-Funded Mega-Projects (ODA & FDI)

FDI into Vietnamese infrastructure reached USD 38.23 billion in 2024, led by Singapore, South Korea, and Japan. Iconic examples include Huadian’s USD 2.4 billion green-hydrogen complex and the USD 14 billion Long Thanh International Airport. Foreign EPC firms bring advanced project-management practices, but their dominance also heightens competition for domestic builders. To preserve local capabilities, the government now reserves 30% of public contracts for Vietnamese bidders. A steady pipeline of ODA-backed highways and power plants should keep the Vietnam infrastructure market attractive to global investors well into the next decade^{[2]Pham Hong Son, “FDI Statistics 2024,” Foreign Investment Agency, fia.gov.vn}.

Accelerated PPP Adoption Under the 2024 Amended PPP Law

Reforms cut approval cycles from 18 months to roughly 12 months, introduce revenue-risk-sharing, and mandate arbitration by the Vietnam International Arbitration Centre. VinGroup’s USD 4 billion Can Gio metro secured preliminary consent just eight months after filing, demonstrating early gains. Shorter timelines reduce interest-during-construction costs and lift project IRRs, encouraging private participation. Quicker closings also move the Vietnam infrastructure market toward regional best practice, outpacing Thailand and Indonesia on procedural efficiency. Consistent enforcement will determine whether investor optimism endures^{[3]Le Thi Thu Hang, “Amended PPP Law 2024—Key Provisions,” National Assembly of Vietnam, quochoi.vn}.

Electrification & Grid-Ready Renewables Build-Out

Power Development Plan VIII targets 47% renewables by 2030, requiring USD 136 billion of new grid assets. Offshore wind clusters in Binh Thuan and Ca Mau, coupled with the USD 10 billion Cá Voi Xanh gas-to-power chain, balance intermittent supply. Electricity of Vietnam is rolling out 500 kV links and 15 million smart meters by 2027, while the national oil and gas group is planning 2 GW of battery storage. These upgrades create opportunities for equipment vendors and EPC contractors and add resilience to the Vietnam infrastructure market.

Fragmented Contractor Landscape Driving Cost Overruns

More than 50,000 registered builders share the market, and the top 10 hold only 15% of revenue. Coordination across dozens of subcontractors inflates costs by 20-35% and prolongs scheduling on mega-projects such as the North-South Expressway. International firms like Kajima and GS E&C fill capability gaps but charge premiums. The Ministry of Construction is promoting mergers and joint ventures to create 5-7 national champions by 2030, yet regional contractors often resist consolidation. Until scale improves, the Vietnam infrastructure market will continue to face budget volatility and quality risks.

Weak Absorptive Capacity of Public-Investment Disbursement

By July 2025, ministries had released only 43.9% of planned funds versus a 65% target. Deferred feasibility studies, thinly detailed environmental assessments, and additional three-to-six-month delays under Circular 08/2025/TT-BXD weigh on timelines. Suppliers such as Hoa Phat Steel reported 25% lower Q1 2025 sales because of slow site mobilization. Project cash-flow shortages ripple through subcontractor networks, creating claims and litigation. Unless administrative capacity rises, fresh allocations could translate slowly into on-ground progress, limiting the near-term upside for the Vietnam infrastructure market.

Segment Analysis

By Infrastructure: Transportation Dominance Drives Mega-Project Pipeline

Transportation captured 48.32% of Vietnam's infrastructure market share in 2024, thanks to marquee assets such as the USD 67 billion North-South High-Speed Railway and the USD 59 billion expressway expansion. Utilities assets, though smaller, are projected to grow faster at an 8.72% CAGR.

The transportation build-out anchors supply-chain resilience for export-oriented manufacturers, reducing door-to-port times and lowering logistics charges. Conversely, grid expansion underpins Vietnam’s energy transition and supplies industrial parks with reliable power, making utilities the next magnet for private capital. 

Note: Segment shares of all individual segments available upon report purchase

By Construction Type: New Construction Leads Amid Urban Renewal Acceleration

New construction accounted for 78.14% of the Vietnam infrastructure market size in 2024, lifted by 80 priority projects. Renovation, however, is gaining traction with an 8.47% CAGR, mirroring the shift toward asset optimization in dense urban zones. 

Standardized cost norms are shortening approval cycles for greenfield sites, whereas aging districts in Ho Chi Minh City and Hanoi need systematic upgrades, from drainage to digital connectivity, to accommodate rising populations. The Vietnam infrastructure market share tied to renovation is poised to climb as transit-oriented redevelopment drives mixed-use projects and lifts land values. Both segments, therefore, coexist: greenfield build-out plugs infrastructure gaps, and brownfield renewal maximizes land efficiency in mature districts.

By Investment Source: Private Sector Momentum Builds Despite Public Dominance

In 2024, public funds supplied 73.45% of investment, reflecting Vietnam’s reliance on fiscal outlays to fix its infrastructure deficit. Yet private participation is forecast to expand at a 9.38% CAGR following the 2024 PPP reforms that compress approval timelines to roughly 12 months. 

VinGroup’s USD 4 billion Can Gio metro and industrial-park pipeline illustrates newfound confidence among domestic conglomerates, while Singaporean and South Korean investors channel capital into logistics and power assets. Enhanced risk-sharing and streamlined arbitration attract insurers and pension funds seeking long-dated cash flows, smoothing funding diversity for the Vietnam infrastructure market.

Geography Analysis

Ho Chi Minh City retained 42.34% of the Vietnam infrastructure market share in 2024, owing to its USD 4 billion metro expansion and 535-project Thu Duc City blueprint. The metropolitan plan piles resources into roads, flood management, and digital utilities, complementing port and airport upgrades that will cement the city’s regional logistics role. Transit-oriented zoning lifts real-estate values around stations by up to 40%, mobilizing private co-investment and amplifying fiscal returns for local authorities.

Hanoi is advancing Metro Line 5 and supporting the USD 2.8 billion Dong Dang-Pingxiang economic corridor, strengthening its position as a trade conduit between China and ASEAN. Improvements to Noi Bai Airport access and ring-road capacity reduce congestion, while housing and social-service facilities keep pace with expanding administrative functions. 

Da Nang, the fastest-growing region with an 8.28% CAGR through 2030, benefits from the VND 43.9 trillion (USD 1.8 billion) Lang Van tourism project and an airport expansion that will triple passenger handling. Its coastal setting and midway location between Hanoi and Ho Chi Minh City attract logistics and electronics manufacturers. Residual regions leverage the USD 59 billion expressway program, renewable-energy clusters, and 100 border-school upgrades to spur inclusive growth, broadening the reach of the Vietnam infrastructure market.