Stable credit conditions in Vietnam forecasted for the second half of 2025
In the second half of 2025, Vietnam's infrastructure and construction sectors are set to experience a significant growth surge, thanks to the government's domestic stimulus policies and institutional reforms.
The surge in infrastructure spending, which rose by 40% year-on-year in the first half of 2025, is a testament to the success of these measures. Faster approvals of projects due to provincial mergers and legal reforms giving provinces more authority over project approvals, as well as streamlined disbursement processes, have contributed to this increase.
The government's revamping of investment laws is another key factor. The reforms aim to boost private sector participation by relaxing public-private partnership (PPP) and build-operate-transfer (BOT) frameworks, increasing state contributions, and expanding the types of eligible projects. These changes are expected to stimulate further private investment and increase infrastructure development.
Public investment disbursement has also accelerated, with about US$10.3 billion being reached by mid-2025, representing 32.5% of the approved budget. The full-year target is VNĐ825.9 trillion (approximately 21% higher than in 2024), which will further stimulate growth in construction, materials, logistics, and related sectors.
Stable credit conditions are expected to support this growth, with credit conditions remaining stable in H2 2025, thanks to proactive fiscal policies and ongoing institutional reforms that facilitate easier financing for infrastructure and construction projects.
Vietnam's economy is currently experiencing robust growth, with GDP growth at 7.52% in H1 2025 and expected to accelerate further to about 8.42% in H2. This stable and growing demand underpins the positive outlook for the infrastructure and construction sectors.
In addition to these direct benefits, the government's policies also aim to empower the private sector for long-term growth, specifically targeting technology, green industries, and innovative firms. Residential real estate and power projects are also expected to gain from faster approvals and the resolution of administrative bottlenecks.
However, not all sectors are expected to benefit equally. The export-dependent sectors, including manufacturing, seaports, and industrial parks, are expected to face pressure due to external headwinds like tariff risks and weakening global demand. Finance companies are also expected to lag behind due to persistent liquidity and funding challenges and elevated asset risks.
Despite these challenges, the government's focus on domestic stimulus and structural reforms is expected to contain the broader impact and soften the blow to the overall economy. The government's policies are designed to promote faster project approvals, increased investment (both public and private), streamlined funding flows, and stable financing conditions, all of which will support sustained growth and activity in Vietnam’s infrastructure and construction sectors in the second half of 2025.
- The surge in infrastructure spending, fueled by the government's domestic stimulus policies and institutional reforms, has resulted in a 40% year-on-year increase in the first half of 2025.
- The government's revamping of investment laws is designed to boost private sector participation, achieved through relaxing public-private partnership and build-operate-transfer frameworks, increasing state contributions, and expanding eligible projects.
- Stable credit conditions, facilitated by proactive fiscal policies and ongoing institutional reforms, are expected to support growth in infrastructure and construction sectors in the second half of 2025.
- The government's policies aim to empower the private sector for long-term growth, specifically targeting technology, green industries, and innovative firms, in addition to residential real estate and power projects.
- Despite external headwinds and challenges faced by export-dependent sectors and finance companies, the government's focus on domestic stimulus and structural reforms is expected to contain the broader impact and soften the blow to the overall economy.
