A new report from Arup, commissioned by the UK’s Foreign, Commonwealth and Development Office (FCDO), details the current state, challenges, and opportunities for infrastructure development in Vietnam.
Vietnam is one of the fastest-growing economies in Southeast Asia and has achieved great strides in expanding its core infrastructure over the last few decades. Economic success has been accompanied by a rapidly growing and urbanizing population which has resulted in a significant need for new and upgraded infrastructure. As the country already contributes a significant portion of their GDP to infrastructure spending, new channels of investment will be instrumental to facilitate growth.
The report is a timely look into understanding the infrastructure landscape in Vietnam and is a valuable resource in outlining how to navigate the market and what the most promising opportunity areas are.
The report assessed five key sectors of infrastructure: transport, energy, water and waste, social and digital, and highlights insights, opportunities, and bottlenecks into each.
Breaking down the bottlenecks faced across a project lifecycle found significant constraints in upstream activities caused by regulatory roadblocks, insufficiencies in capacity or skills, or a lack of enabling infrastructure, among others. All factors that need to be understood and considered upon market entry to ensure success.
Vietnam’s recent climate commitments, including a target to achieve net zero by 2050, building green sustainable and resilient infrastructure will be vital to consider in future developments.