Public investment drives economic growth in 2026

Vietnam’s economy ended 2025 on a high note, posting strong growth and achieving several historic milestones. Experts say maintaining high and sustainable growth depends on mobilizing all available resources, with public investment playing a central role.

The HCM City’s Ring Road No. 3 project section passing through Dong Nai has opened for technical traffic and is expected to be fully completed by early 2026.

Dong Nai is one of Vietnam's leading provinces in economic development. The province is implementing several major national infrastructure projects and is focusing on accelerating public investment to drive overall growth.

A large amount of capital from public investment is needed

At the seminar on public investment titled “Unlocking Bottlenecks to Boost Growth in 2026,” organized by the Vietnam Chamber of Commerce and Industry (VCCI) on December 23, 2025, Dr. Do Thien Anh Tuan, lecturer at the Fulbright School of Public Policy and Management, emphasized that public investment plays a critical role in achieving high economic growth.

Currently, total social investment in Vietnam accounts for approximately 33% of the country's GDP, with public investment making up roughly 10%, or 28% of the total structure. Assuming real GDP grows by 10% in 2026 as planned, and inflation remains at 4%, the size of the economy could exceed 14 quadrillion VND at current prices. To raise total social investment to 40% of GDP, Vietnam would need approximately 5.8 quadrillion VND, around 1.65 quadrillion VND of which would be public investment, a significant increase compared to the 2025 public investment plan of about 1 quadrillion VND.

In Dong Nai, public investment is considered a key task under Resolution No. 44/NQ-HDND, dated December 10, 2025, issued by the Provincial People’s Council, outlining the 2026 socio-economic and national defense-security development plan. The province is strengthening the implementation of coordinated measures to mobilize and allocate resources effectively for infrastructure development. Key targets include completing provincial and commune-level roads, developing transport infrastructure, accelerating major transport projects and large-scale initiatives, as well as advancing flood control systems, clean water supply projects, and urban and commercial service developments.

The Department of Finance in Dong Nai reports that in 2026, the province plans to invest over 27 trillion VND in public investment, with a focus on key infrastructure and projects that drive socio-economic development.  

During the meeting on December 29, 2025, Nguyen Van Ut, Deputy Secretary of the Provincial Party Committee and Chairman of the Dong Nai People’s Committee, noted that in 2026 the province plans to implement numerous projects, prioritizing key public investment works identified by the 1st Provincial Party Congress for the 2025–2030 term and strategic sectors directed by the government, including healthcare, education, and government office infrastructure. He emphasized that investment preparation must start at the outset of the year, with resources allocated efficiently to critical projects and adjustments made to maintain focus and maximize effectiveness.

The foundation for sustainable development

Vo Tan Thanh, Vice President of VCCI, emphasized that Vietnam is entering a new phase of economic development. Efficient public investment reduces logistics and compliance costs for businesses, expands growth opportunities, and strengthens regional connectivity. It encourages private sector participation, drives technological innovation, and improves production organization, forming the foundation for rapid and sustainable growth from 2026 to 2030.

Public investment can only boost the economy if capital is used efficiently. Dr. Do Thien Anh Tuan noted that Vietnam’s post-pandemic ICOR (the indicator showing how many units of capital are needed to generate one unit of additional output; the higher the ICOR, the lower the investment efficiency) averages 5.85, indicating low investment productivity. The focus should shift from merely disbursing funds to maximizing the impact and returns of projects throughout their entire lifecycle. Thorough and rapid land clearance is critical to ensure projects proceed without delay.

Public investment is expected to generate strong economic momentum, said Dau Anh Tuan, Deputy Secretary General and Head of the Legal Department at VCCI. He noted that the amended Investment Law of 2025 introduces a pivotal shift from a “pre-approval” to a “post-approval” approach, significantly reducing procedural steps for investment projects. Additionally, other related laws have been revised in a coordinated manner to provide maximum support for construction and infrastructure projects. The central government has delegated substantial decision-making authority to provincial governments and line ministries, enhancing local autonomy and streamlining the management of medium-term capital plans. The year 2026 is regarded as a critical juncture when these breakthrough policies are set to come into effect, creating substantial synergies for Vietnam’s growth.

By Vuong The – Translated by Tam Binh, Minho