Business Talk — Transport Infrastructure: Vietnam’s Structural Bottleneck and Strategic Lever

In Vietnam, growth is no longer reflected solely in macroeconomic indicators. It is increasingly visible in the infrastructure reshaping the country’s economic landscape. With GDP growth exceeding 8% in 2025 and a strong rise in both passenger and cargo flows, Vietnam is clearly positioning infrastructure investment as a key driver of its development. Yet behind this momentum lies a structural constraint: transport remains one of the main pressure points in the country’s growth model.

For several years, infrastructure has been one of Vietnam’s key vulnerabilities. Urban congestion, saturation of major road networks, regional connectivity gaps, and increasing pressure on logistics platforms continue to hinder the fluidity of trade. Logistics costs still account for approximately 16–20% of GDP, compared to around 10–12% in developed economies — a significant gap that directly impacts business competitiveness. In a context where industrial growth, foreign investment, and urbanization are accelerating, transport can be seen as the “Achilles’ heel” of Vietnam’s development: essential, yet still not fully aligned with the country’s economic ambitions.

This pressure is also driven by the structure of the logistics system itself. Today, more than 70% of freight relies on road transport, exacerbating congestion and costs. In some supply chains, transport expenses can account for up to 20–25% of the final cost of goods, further affecting efficiency and competitiveness for both local and international players.

To address this imbalance, Vietnam is accelerating large-scale infrastructure projects. The Long Thanh International Airport, located approximately 40 kilometers east of Ho Chi Minh City, is a key example of this strategy. Designed to relieve Tan Son Nhat Airport — originally built for around 28 million passengers but having recently exceeded 40 million — it is expected to handle 25 million passengers annually in its first phase, before reaching over 100 million in the long term. The project is strategic not only for mobility but also for strengthening the regional positioning of southern Vietnam.

However, beyond its symbolic value, Long Thanh also highlights a more complex reality: building a major infrastructure asset is not sufficient if the surrounding ecosystem does not evolve at the same pace. The challenge is not only about increasing capacity, but also about ensuring effective integration with road networks, industrial zones, urban centers, and other transport modes. In other words, Vietnam’s challenge is not just a lack of infrastructure, but also one of coordination, coherence, and execution.

This issue is equally visible at the urban level. Around Ho Chi Minh City, the development of the metro system represents a significant step toward reducing congestion and improving connectivity between the economic center and its industrial outskirts. While promising on paper, these projects also illustrate a recurring reality: transport modernization in Vietnam often unfolds over extended timelines, with gaps between political ambition, construction progress, and tangible impact on daily mobility.

At the national level, the North–South high-speed railway project reflects the same transformation logic. Spanning approximately 1,540 kilometers with a target speed of 320 km/h, it aims to connect Hanoi and Ho Chi Minh City while reshaping regional economic dynamics. However, with an estimated investment exceeding USD 55 billion, the scale of the project highlights that Vietnam’s transport transformation will be gradual and highly dependent on long-term financial and institutional capacity.

Maritime infrastructure developments further complement this strategy. In the north, the Hai Phong port complex strengthens Vietnam’s position within regional and global supply chains, with a capacity exceeding 100 million tons per year and facilities capable of accommodating large vessels. In central Vietnam, Da Nang is emerging as a strategic logistics hub, handling over 20 million tons of cargo annually and supported by targeted economic zones and investment incentives. Yet here again, capacity alone is not sufficient. Logistics performance ultimately depends on the quality of inland connections, operational efficiency, and the fluidity of corridors linking ports to industrial and consumption centers.

Vietnam is therefore at a pivotal stage. The country has clearly identified transport infrastructure as both a constraint and a critical enabler of its next phase of development. Annual infrastructure investments — estimated at over USD 30 billion — reflect strong ambition. At the same time, Vietnam continues to attract between USD 36 and 38 billion in foreign direct investment each year, which further increases pressure on existing systems. The country currently ranks around 43rd globally in the Logistics Performance Index published by the World Bank — a mid-level position that reflects both progress and significant room for improvement.

For companies and investors, the signal is therefore twofold. On one hand, Vietnam demonstrates a clear commitment to addressing one of its key structural weaknesses through large-scale, forward-looking projects. On the other, these efforts underline that the country remains in a phase of logistical adjustment, with continued challenges in connectivity, efficiency, and territorial coordination.

Transport thus remains one of the most sensitive aspects of Vietnam’s development. Yet precisely because it has long been a structural weakness, it is now becoming a key indicator of the country’s transformation. More than just an investment priority, it represents a real test of Vietnam’s ability to build a more structured, resilient, and sustainable growth model.