A vital boost to economic growth

The groundbreaking and inauguration ceremonies of 250 large-scale projects and works to celebrate the 80th anniversary of the National Day of the Socialist Republic of Vietnam (September 2, 1945 - September 2, 2025) were held nationwide on August 19, 2025 with the central bridge at the National Exhibition and Fair Center (Dong Anh commune, Hanoi city) and online and live television bridges at large-scale projects and works.

National Exhibition and Fair Center. (Photo: VGP)

Strategy to activate ripple effect

Dr. Nguyen Quoc Viet, public policy expert, University of Economics , Vietnam National University, Hanoi, commented that the Government's choice of August 19, 2025 to simultaneously inaugurate and start construction of a series of key projects across the country has a profound strategic significance.

Dr. Nguyen Quoc Viet. (Photo: Nhan Dan Newspaper)

This event is not only a series of mass activities to celebrate the 80th anniversary of Vietnam's National Day, but also has strategic significance for socio-economic development and affirms the determination of the Vietnamese people to rise up in the new era.

At the same time, it sends a strong message to the domestic and foreign business community about Vietnam's commitment to accelerating the development of strategic infrastructure and improving the investment environment, creating momentum and strong confidence in the ability to implement national development goals, thereby promoting national pride and consensus throughout society.

Of the total 250 projects compiled from 34 provinces/cities, 17 ministries, branches and 18 corporations and general companies nationwide, 89 projects have been completed and are eligible for inauguration and 161 projects are eligible for commencement.

The significantly higher rate of projects starting construction than those inaugurated shows that the Government ’s strategic vision goes beyond summarizing past achievements to focusing strongly on laying the foundation for long-term growth. This signals a period of strong investment in infrastructure and key economic sectors in the coming years.

The structure of investment capital is a notable point, reflecting the policy of promoting public-private cooperation and the ability to attract international resources. State capital accounts for 37% of the total investment with 129 projects, equivalent to 478,000 billion VND.

Meanwhile, capital from other sources, including private capital and foreign direct investment (FDI), accounted for a larger proportion of 63% of the total investment, equivalent to VND802,000 billion for 121 projects. The dominant proportion of non-state capital shows that Vietnam is actively mobilizing diverse resources to finance development projects, reducing the burden on the state budget.

Economically, allocating a large amount of state capital to key projects will directly promote public investment disbursement, which is truly the driving force for economic growth in 2025 and the following years and plays a leading role in private investment.

The Ministry of Construction expects these 250 projects to contribute more than 18% of the country’s GDP in 2025 and more than 20% in the following years. This impressive GDP contribution shows that the projects are expected to be the main growth drivers of the economy, not only in the short term but also in the long term.

This is a strategy that triggers a spillover effect, creating a positive investment cycle, promoting economic restructuring towards modernization. The Government's high political determination helps speed up the project approval and implementation process, thereby improving the speed of public investment disbursement, which is often delayed.

The projects will also significantly improve connectivity between key economic regions, reduce transportation time and costs, thereby promoting trade, tourism and goods circulation, attracting high-tech FDI, taking advantage of experience, technology and advanced management capacity from foreign investors, contributing to improving growth quality and shifting economic structure towards modernization, contributing to enhancing competitiveness in production and ensuring energy security.

This allocation reflects the Government's commitment to sustainable and inclusive development, aiming to improve the quality of life for people and ensure social security, with the highlight being the commencement of a series of social housing projects, smart urban development, projects to improve the quality of education and health services, culture and sports as well as promote the image of Vietnam tourism.

The groundbreaking and inauguration ceremony of 250 large-scale projects and works is not only an activity to celebrate the 80th anniversary of National Day on September 2, but also a strong statement about Vietnam's development orientation: a country determined to develop rapidly and sustainably, based on a solid foundation of social stability and diverse resource cooperation.

This is a positive signal to international investors and partners about a dynamic, determined Vietnam capable of implementing ambitious development goals, opening a new era for the country's strong rise.

Expanding growth space

According to Dr. Le Duy Binh, CEO of Economica Vietnam, 250 projects and works started and inaugurated have a total estimated investment of about 1,280,000 billion VND, equivalent to more than 10% of Vietnam's GDP.

With such a scale, when fully disbursed, the projects will directly contribute to the total demand of the economy, thereby directly contributing to GDP growth, towards the high growth target this year and the coming years.

Dr. Le Duy Binh. (Photo: Nhan Dan Newspaper)

In addition to directly contributing to GDP growth this year, the projects spread across 34 provinces and cities and focusing on essential infrastructure works will expand the growth space of the economy, strengthen connectivity between economic regions and growth poles, reduce logistics costs, and connect raw material, fuel, and production regions with the domestic market.

The competitiveness of the economy will thus continue to improve, and business costs will be significantly reduced. The expanded growth space, improved connectivity between economic regions, and improved competitiveness will further promote private investment in all provinces and cities across the country.

Notably, this total investment includes private capital and other socialized capital sources. Capital from the State budget has therefore played an increasingly better role in mobilizing capital from the private sector and socialized capital sources for infrastructure projects, important projects for the country's socio-economic development in many fields.

These projects and works are the clearest evidence of the Government's drastic direction and management, the strong participation of ministries, branches and localities, to complete the procedures for project identification, appraisal, approval, deployment and implementation.

The spirit of decisive leadership is demonstrated by considering the results of public investment disbursement as an important basis for assessing the level of task completion and evaluating cadres, and considering public investment disbursement as a key and urgent task to promote growth and ensure major balances of the economy.

That determination is also supported by efforts to perfect institutions on public investment, especially the Law on Public Investment, which will be implemented from January 1, 2025, with many new, breakthrough regulations, strong reforms, and increased decentralization and delegation of power.

Assessing the impact of the event on the country's socio-economic development goals, General Statistics Office Director Nguyen Thi Huong stated that the simultaneous commencement and inauguration of nearly 250 projects not only has great political and social significance but is also an important boost for national economic growth. In the context of the Government setting a GDP growth target of 8.3-8.5% in 2025, public investment and key projects are one of the key driving forces to achieve this goal. Accelerating the disbursement of investment capital will contribute to realizing the Government's growth target.

The public investment capital plan for 2025 is very large, up to more than 900,000 billion VND, an increase of more than 40% compared to the public investment capital implemented in 2024. When public investment capital increases sharply, it will promote growth in related industries such as construction, processing industry, construction materials production, transportation, etc.

According to calculations, if 100% of public investment capital is disbursed this year, it will contribute to increasing GDP by more than 2 percentage points. By the end of July 2025, the state budget capital is estimated to reach about 40.7% of the annual plan.

Thus, to achieve the goal of implementing and disbursing 100% of the public investment capital plan for 2025, in the remaining 5 months of the year, it is necessary to implement more than 59% of the plan (on average, each month needs to implement and disburse about 12% of the annual plan).

This is a very difficult journey, requiring strong direction from ministries and localities, and determined efforts from investors and contractors to speed up progress to the finish line, but must ensure quality and efficiency.

The impact of these projects is expected to be evident in many aspects. Specifically, when the projects are implemented, the demand for input factors will increase. Industries such as construction materials production (cement, steel, sand, stone), machinery and equipment, and supporting service industries (transportation, consulting, design) will be strengthened to meet input needs.

The growth of these sectors will directly contribute to the country's GDP growth. It will create more jobs in the construction, engineering, services and technology sectors. Increased income will lead to higher domestic consumption, boosting domestic production and trade.

Completed transport, energy, industrial and urban projects will help reduce logistics costs, speed up the flow of goods and services, and support businesses in expanding production. Modern infrastructure is a key factor in attracting high-quality FDI, promoting industrialization, technological innovation and economic restructuring.

With a very large scale of investment capital, spread across many fields and locations, 250 projects and works were inaugurated and started construction on the occasion of the 80th anniversary of National Day on September 2nd, playing both a short-term stimulus role and a foundation for increasing productivity and long-term competitiveness of the Vietnamese economy.

If implemented effectively and disbursed on schedule, this will be a high-speed springboard to promote public investment projects to implement and disburse 100% of the public investment capital plan in 2025, contributing significantly to promoting GDP growth in 2025 to reach more than 8%.

According to Nhan Dan Newspaper
https://nhandan.vn/cu-huych-quan-trong-cho-tang-truong-kinh-te-post901314.html

Source: https://thoidai.com.vn/cu-huych-quan-trong-cho-tang-truong-kinh-te-215671.html