Infrastructure & PPPs in Vietnam - Q3 2025 Update

VIETNAM has approved major investments in transport infrastructure in the country, including development of new metro lines in Hanoi & Ho Chi Minh city, ports & lositics and development of new airports in the country. There is also continued focus on energy transition aimed at achieving net-zero emissions by 2050 in areas of renewable energy, Waste-to-Energy and LNG-basd power plants. These investments are expected to be partially met through private sector participation and PPPs.

Read the latest developments in Infrastructure and PPPs in Vietnam in our Q3 2025 insight.

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JULY 2025

NORTHERN VIETNAM PROVINCE DETERMINED TO BREAK GROUND ON LNG-FUELED POWER PROJECT

A USD 2.56 Bn LNG-fueled power project in the northern province of Hung Yen is set to break ground. The 1,500 MW facility is located in former Thai Binh province, which is now part of Hung Yen after the recent merger of the two provinces.

The plant is designed to have two turbines, with the first expected to come online in Q4/2028 and the second in Q4/2029. It is expected to operate 6,000 hours per year, generating around 9 billion kWh annually. The project will occupy 263.43 hectares within the Thai Binh Economic Zone, including 53.8 ha of land for the power plant and auxiliary facilities, and 209.7 ha of water surface for LNG regasification terminals, pipelines, and related infrastructure.

HANOI APPROVES 8 NEW METRO LINES, INCLUDING 2 ROUTES TO AIRPORTS

The capital city will develop an underground metro system with eight major lines totaling over 320 km, including two airport routes, aiming to ease congestion and modernize urban transit. The Hanoi People’s Council approved a resolution to encourage the investment and development of underground infrastructure projects, including eight urban railway (metro) lines, five road tunnels, 78 underground parking lots, and 95 street-level utility ducting projects. The plan reflects Hanoi’s commitment to developing a modern, sustainable, and efficient public transport system to ease traffic congestion and accommodate rapid urban growth.

The eight metro lines approved for development include:

1. Noi Bai - Thuong Dinh – Buoi

2. Troy - Nhon - Yen So

3. Me Linh – Sai Dong – Lien Ha

4. Van Cao – Hoa Lac

5. Son Dong – Mai Dich

6. Linh Nam – Duong Xa, Ngoc Hoi – second airport (Southern)

7. Cat Linh – Lang Ha – Le Van Luong – Yen Nghia

8. Ring Road 2 – Southern axis – second airport (Southern)

Notably, two of the eight routes are designed to connect the city center with airports: the existing Noi Bai International Airport and a second international airport planned in the southern region. The second part of the approved resolution encourages investment in underground road infrastructure, including:

1. 5 underpasses for road traffic

2. 78 underground parking lots

3. 2 underground public facilities

The third category focuses on burying overhead cables and constructing shared technical infrastructure along 95 streets, contributing to a safer, more organized urban landscape.

HUE CITY TO TRANSITION ITS PUBLIC TRANSPORT FLEET TO EVs BY 2030

The People’s Committee of Hue city in Vietnam's central region has announced a comprehensive plan to transition local passenger transport to electric vehicles, aiming to advance the city’s green energy goals for the 2025–2030 period.

During the 2025–2030 period, the city targets 60% of taxis operating in the locality to be electric. For contract-based passenger transport, 30% of new or replacement vehicles must also be electric. The initiative seeks to reduce greenhouse gas emissions, promote environmentally friendly transportation, and align with the broader trend of sustainable development. By the end of 2025, Hue aims to establish a basic charging station infrastructure with sufficient capacity to support electric vehicles used for commercial passenger transport. By 2030, the city plans to complete a city-wide charging network, ensuring that every ward and commune has at least one charging point to serve both public transport and private electric vehicles used by residents and organizations.

DA NANG CALLS FOR INVESTMENT IN USD 106 MN WASTE-TO-ENERGY PROJECT

Da Nang city in Central Vietnam is inviting investors to participate in the development of a waste-to-energy plant with a daily processing capacity of 1,000 tons and an electricity generation capacity of 20 MW. The project will be implemented under a Public-Private Partnership (PPP) model and will be located at the Khanh Son Solid Waste Treatment Complex (Khanh Son landfill).

The investment and construction period is scheduled for 2025 to 2028. The project will have an operational term of 25 years, excluding the time required for preparatory procedures such as the preparation, appraisal, and approval of the feasibility study, investor selection, and facility construction. The project aims to enhance the city’s capacity to handle its increasing volume of domestic waste; ensure the security and reliability of waste collection, treatment, and environmental sanitation; meet sustainable development goals; and improve the overall quality of the urban environment. With a total estimated investment of over VND 2.777 Trn (USD 106 Mn), the project will span a land area of 53,768 square meters and is expected to be implemented under a Build–Lease–Transfer (BLT) contract model.

LAO CAI APPROVES USD 248 MN PPP PLAN FOR SA PA AIRPORT DEVELOPMENT

A revised proposal has been authorized by the Lao Cai Provincial Government for the Sa Pa Airport project, which will be built through a Public-Private Partnership (PPP).

The project with an investment of over VND 6.3 Trn (USD 248 Mn) will be developed in two phases. Phase 1 involves the construction of an ICAO 4C-standard airport with an annual capacity of 1.5 million passengers and military airbase functions. Phase 2 enhancements will increase capacity to 3 million passengers, add aircraft parking spaces, and expand the terminal with new jet bridges.

The PPP contract covers capital recovery, operation, and construction for a period of almost 47 years. While Phase 2 will be carried out during the operational time, Phase 1 construction is anticipated to take somewhat more than two years. Phase 1 will get around USD 157 Mn, while Phase 2 will receive USD 94 Mn. The improved infrastructure is intended to promote wider economic growth in the Lao Cai region and enhance air connectivity to the popular tourist destination of Sa Pa.

VIETNAM MOBILISES OVER USD 7 BN FOR JUST ENERGY TRANSITION

The Government of Vietnam has secured more than USD 7 Bn to support its Just Energy Transition Partnership (JETP) goals, aimed at achieving net-zero emissions by 2050.

Three major projects have already received IPG funding:

1. EUR 67 Mn (USD 78.26 Mn) for a 500 kV power line through Ho Chi Minh City and Dong Nai.

2. EUR 480 Mn (USD 556.25 Mn) for the Bac Ai pumped-storage hydropower plant in Khanh Hoa.

3. EUR 65 Mn (USD 76. 12 Mn) to upgrade the Tri An hydropower plant.

An additional 21 projects are under review, bringing the total to 24 projects identified as JETP-eligible, requiring estimated funding of USD 7.04 Bn. Partners reiterated their commitments to support Vietnam in achieving a fair, inclusive transition toward net-zero emissions by 2050.

NINH BINH PROVINCE PROPOSES LOCATION FOR PROJECTED INTERNATIONAL AIRPORT

The People’s Committee of Ninh Binh province in the northern region has proposed to build Ninh Binh International Airport in Liem Tuyen commune with a total area of around 720 hectares. This location is chosen for its connection with regional transport infrastructure network. The airport is around 80 kilometres from Noi Bai International Airport in Hanoi, 85 kilometres from Cat Bi airport in northern Hai Phong city and Tho Xuan airport in central Thanh Hoa province, and 63 kilometres from Gia Binh airport in northern Bac Ninh province, which is under construction.

The airport is also located near the projected North-South high-speed railway. As planned, the airport will meet the 4E airport standard (according to the International Civil Aviation Organization standard code), capable of accommodating large aircraft such as B787, B777, and A350.

GIA BINH TO BE NORTHERN VIETNAM’S LARGEST AIRPORT AS SCALE LARGELY REVISED UP

Gia Binh International Airport in Bac Ninh province, an industrial hub neighbouring Hanoi, is set to surpass Noi Bai as northern Vietnam’s largest airport, after the construction ministry approved adjustments to its projected capacity and land area.

The airport will span up to 1,960 hectares, a sharp increase from 408.5 hectares outlined in the April revision. It is now expected to handle around 30 million passengers annually by 2030, and roughly 50 million by 2050, up from the earlier projections of 5 million and 15 million, respectively.

With the revised plan, Gia Binh will overtake Hanoi’s Noi Bai International Airport and Ho Chi Minh City’s Tan Son Nhat International Airport, each covering around 1,500 hectares to rank second nationwide, trailing only 5,000-hectare Long Thanh International Airport in the southern province of Dong Nai. The project is estimated to require an investment of around VND 120.84 Trn (USD 4.62 Bn) for the 2021-2030 period, and about VND 61.46 Trn (USD 2.35 Bn) through 2050.

The airport’s estimated investment under the master plan, with no development planned for 2021-2030, is around VND 9.98 Trn (USD 381.72 Mn) through 2050. The master plan envisions a total land area of around 25,791 hectares allocated for airport development nationwide through 2030. Vietnam’s airport network will require an estimated VND 444.71 Trn (USD 17.01 Bn) in investment through 2030, mobilized from state budget, non-budgetary sources, and other legal funding channels.

AUGUST 2025

HO CHI MINH CITY ADDS 27 NEW ELECTRIC BUS ROUTES, EXPANDS FLEET WITH 443 E-BUSES

The Government of Ho Chi Minh City has launched 27 new electric bus routes and added 443 electric buses to its fleet, bringing the total number of e-buses in operation to 613. With this expansion, over 26% of the city’s bus fleet now runs on electricity. Combined with around 500 Compressed Natural Gas (CNG) vehicles, nearly half of the city’s fleet operates on alternative fuels.

The new electric buses—B30-EV and B60-EV models from local manufacturer Kim Long Motor—are operated by Phuong Trang – FUTA Bus Lines. They feature 30–60 seat capacities, GPS, onboard cameras, contactless payment, free Wi-Fi, and automated announcements.

Authorities have also established a network of charging stations to support the expanded fleet and aim to transition all public buses to clean energy by 2030. Despite this progress, national challenges remain with grid stability and EV charging infrastructure.

VIETNAM REVISES NATIONAL ENERGY STRATEGY TO SUPPORT GREEN AND SECURE GROWTH

The Government of Vietnam has approved the revision of its National Energy Master Plan for 2021–2030 with a vision to 2050. The decision aims to align energy development with the country’s socio-economic goals and climate commitments.

The updated plan will span oil and gas, coal, electricity, and renewable energy, covering the full value chain from exploration to consumption. It seeks to ensure energy supply meets the needs of industrialisation and modernisation while phasing out subsidies, boosting efficiency, diversifying sources, and enhancing market competition. The strategy also highlights regionally balanced development and deeper integration of Fourth Industrial Revolution technologies. A central focus is on environmental sustainability, calling for the energy sector to contribute actively to national climate change mitigation and green growth.

VINGROUP PLANS USD 14.3 BN PORT AND LOGISTICS CENTRE IN HAI PHONG

Vingroup plans to build the Nam Do Son port and logistics complex in the northern city of Hai Phong at a cost of VND 373.84 Trn (USD 14.3 Bn). The 4,400-hectare complex in the south of the city will be developed in three phases between 2026 and 2040.

1. Phase one (2026–2030) will receive VND 29.1 Trn (USD 1.11Bn).

2. Phase two (2031-2035) will receive VND 206.3 Trn (USD 7.88 Bn)

3. Phase three (2036-2040) will receive VND 138.5 Trn (USD 5.29 Bn)

Vingroup will finance 15% of the total investment, with the remainder sourced through external funding. This megaproject strengthens Vingroup’s presence in Hai Phong, where its ventures include the VinFast EV plant, multiple Vinhomes real estate developments, two upcoming industrial parks, and a planned LNG-to-power project. Hai Phong has emerged as a logistics and manufacturing hub, with port throughput expected to reach 212 million tonnes in 2025.

SEPTEMBER 2025

VIETNAM’S LONG THANH INTERNATIONAL AIRPORT TO BE COMPLETED IN 2026

Vietnam’s USD 13 Bn Long Thanh International Airport project is moving closer to completion, with most major construction expected to wrap up by the end of 2025. Commercial operations are targeted for 2026, positioning the facility to become the largest airport in the country.

The Government of Vietnam approved the project in 2020 to address severe overcapacity at Tan Son Nhat Airport in Ho Chi Minh City. Built on 5,000 hectares in Dong Nai province, Long Thanh will eventually handle up to 100 million passengers annually. Development is phased, with the first stage designed for 25 million passengers at a cost of USD 4.6 Bn.

Despite delays caused by the pandemic, land acquisition challenges, and contract bidding setbacks, the Airports Corporation of Vietnam (ACV) has accelerated progress. A consortium led by a Turkish firm, along with state-owned and private Vietnamese partners, is constructing the main passenger terminal under a USD 1.5 Bn contract. ACV has been financing much of the work through reserves and profits, while also securing a USD 1.8 Bn domestic credit line.

Connectivity remains a challenge, as Long Thanh is 40 km from Ho Chi Minh City and is currently only linked by expressway. Rail connections have been proposed but face uncertain timelines. This project reflects Vietnam’s evolving approach to infrastructure development: leveraging both state and private sector resources, financing major works domestically, and learning to navigate land and governance constraints. Once operational, Long Thanh will significantly enhance the country’s aviation capacity and regional competitiveness.

DEO CA GROUP PROPOSES DANANG–HOI AN METRO UNDER PPP MODEL

Vietnam-based Deo Ca Group has proposed a metro line linking Danang and Hoi An, two of central Vietnam’s most important tourist hubs. The line, planned under a Public-Private Partnership (PPP) model, will integrate transit-oriented development (TOD) to ensure financial viability and support urban growth along the corridor.

The company has shortlisted metro and monorail options after assessing terrain and cost factors. The project, targeted for completion by 2030, may later extend to Tam Ky and Chu Lai. Land development along the route is expected to help finance the line, in line with global TOD practices.

Danang’s transport master plan envisions two metro lines by 2030, expanding to three by 2040 and 11 lines by 2045. The metro proposal comes as Danang reported 12.8 million overnight visitors in the first eight months of 2025, a 21% year-on-year increase. Improved connectivity between Danang and Hoi An is expected to ease congestion, enhance the tourist experience, and drive sustainable growth in central Vietnam.

HO CHI MINH CITY TO LAUNCH NINE METRO LINES WORTH USD 44 BN BY 2027

The Government of Ho Chi Minh City has announced plans to begin construction of nine new metro lines by the end of 2027, with an estimated investment of USD 44 Bn. The projects, spanning 355 km, are expected to be developed in two phases (2026–2030 and 2031–2035) and completed by 2035.

The name of nine metro lines for development include:

1. Ben Thanh – Suoi Tien

2. Ben Thanh – Tham Luong

3. Ben Thanh – Tan Kien Depot

4. Cong Hoa – Hiep Binh Phuoc Intersection

5. Thanh Xuan – Hiep Phuoc Urban Area

6. Gia Dinh Park Station – Lang Cha Ca Station

7. Can Giuoc Bus Station – Saigon Bridge

8. Ba Queo – Phu Lam

9. A proposed rail line connecting central HCMC with Can Gio.

The city’s Urban Railway Management Board is preparing feasibility studies and technical designs, while land clearance and resettlement are targeted for completion by 2027. Funding will come from a mix of sources, including ODA, state budget, PPPs, and value capture from TOD zones. Authorities are finalising a Capital Mobilization Plan to ensure transparent and stable financing.

VERDANT ENERGY ACQUIRES 11 MW ROOFTOP SOLAR PORTFOLIO IN VIETNAM

Singapore-based renewable energy developer Verdant Energy has expanded its presence in Vietnam with the acquisition of an 11 MW operational rooftop solar portfolio that directly supplies clean electricity to local multi-format retailer Central Retail.

The portfolio comprises solar installations across 10 shopping malls, will directly supply renewable electricity to Central Retail’s operations. The assets are expected to generate more than 11,700 MWh of clean energy annually, offsetting approximately 8,100 tons of carbon emissions each year.

This transaction marked Verdant Energy's entry into the rooftop solar segment and expanded its operations to nine provinces across Vietnam. Verdant Energy develops and invests in renewable energy projects across the Asia Pacific.

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List of Key Transactions - Q3 2025

Source: YOG INFRA analysis

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