The Law on Investment under the public-private partnership (PPP) model, as amended and supplemented by Law No. 57/2024/QH15, marks a significant breakthrough in Vietnam’s strategy to attract foreign direct investment (FDI) into infrastructure. With substantive reforms such as expanding eligible sectors, diversifying cooperation models, and introducing risk-sharing mechanisms, infrastructure is no longer just a foundation for development but a core pillar in Vietnam’s international investment strategy.
This article is prepared by DNP Viet Nam Law Firm to provide a comprehensive legal perspective on the recent changes in PPP policy, helping foreign investors understand new opportunities and effectively participate in infrastructure projects in Vietnam from 2025 onwards.
1. FDI shift towards infrastructure in Vietnam: A new driver of national economic growth
Legal basis: Clause 3 Article 3 of Resolution No. 103/2023/QH15 on the 2024 socio-economic development plan; clause 4 Article 3 of Resolution No. 158/2024/QH15 on the 2025 socio-economic development plan.
- Compared to 2024, the trend of FDI into Vietnam’s infrastructure in 2025 has seen a clear transformation. In 2024, Vietnam focused on legal review, project preparation, and completion of the policy framework, especially for PPPs, power planning, and the direct power purchase agreement (DPPA). The priority was to standardize technical criteria in sectors such as commerce, urban development, telecommunications, and energy, while addressing pressing issues like landslides, saltwater intrusion, and rural electrification.
- By 2025, the surge in capital inflows has accelerated disbursement and commencement of major projects, particularly in transportation and high-speed rail. Digital infrastructure is also prioritized in alignment with the digital, green, and circular economy. A significant shift is observed in the scale and connectivity of FDI projects, which are now larger, more inter-regional, and linked with industrial zones and smart cities. PPP policies have moved beyond review and are being flexibly applied through special mechanisms to resolve implementation bottlenecks and attract both FDI and public investment in infrastructure.
2. Key PPP policy changes from 2025: a gateway for FDI in national infrastructure
2.1. Expansion of PPP-eligible sectors for FDI mobilization
Legal basis: Article 2 of Decree No. 180/2025/NĐ-CP on PPP mechanisms in science, technology, innovation, and digital transformation; clause 2 Article 3 of Law No. 57/2024/QH15 amending laws on planning, investment, PPP investment, and bidding.
- PPP investment is now allowed in all public investment sectors. The previous minimum capital requirement has been removed to encourage PPP projects in a wide range of areas tailored to the specific FDI needs of ministries and local authorities.
- Eligible sectors are no longer limited to transport and energy infrastructure, but now include science, technology, digital transformation, and innovation — opening new pathways to mobilize high-quality FDI.
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2.2. Greater flexibility in PPP investment models
Legal basis: Article 3, point b clause 1 Article 13, point c clause 10 Article 20 of Decree No. 180/2025/NĐ-CP; clause 7 Article 2 of Law No. 90/2025/QH15 amending laws on bidding and PPP investment.
- Administrative procedures have been streamlined. Authority has been decentralized to local levels, the requirement to establish appraisal councils has been removed, prior experience in similar projects is no longer mandatory, and strategic technology investors may be appointed directly.
- Various PPP forms are allowed, including BOT, BTO, BT, BTL, O&M, joint ventures under the Law on Management and Use of Public Property, and other models such as state sponsorship, public procurement, and tripartite cooperation between the state, scientific institutions, and private enterprises.
2.3. Enhanced government guarantees and risk-sharing mechanisms
Legal basis: Point b clause 16 Article 3 of Law No. 57/2024/QH15; Article 82 of the PPP Law as amended by Law No. 57/2024/QH15 and Law No. 90/2025/QH15.
- The state is now permitted to contribute up to 70% of total investment capital in projects related to technology, innovation, and digital transformation.
- The government also offers revenue risk-sharing during the first three years of project operation.
The 2024 – 2025 period marks a pivotal transition in Vietnam’s PPP policy. These reforms not only streamline procedures and expand the legal framework, but also demonstrate a strong commitment to leveraging PPPs as a gateway for attracting high-quality FDI into the country’s infrastructure sector.
“The above content is provided by DNP Viet Nam Law Firm for reference purposes only. For detailed, accurate, and tailored legal advice that meets your specific needs, please contact us using the information provided below.”
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