Infrastructure and Green Industry: Vietnam Poised for a Strategic Leap Forward

Highlights

As countries around the world race to attract industrial investment, Vietnam has emerged as a standout destination, drawing global attention thanks to a powerful combination of political stability, a dynamic young workforce, modernizing infrastructure, and strong commitments to green development. These advantages are rapidly positioning Vietnam as a strategic industrial hub in Asia—and now is a prime window for both local and international investors to take action.

On September 11, 2025, at the Vietnam Industrial Investment and Factory Development Forum—part of the VIET INDUSTRY – CLEANFACT & RHVAC VIETNAM 2025 international exhibition—domestic and international experts gathered to share insights on trends, policies, and emerging opportunities in the Vietnamese market. Mr. Chu Viet Cuong, Director of the Industrial Development Support Center (Ministry of Industry and Trade), emphasized Vietnam’s goal of becoming a modern, green, and sustainable industrial center in the region by 2030, with a focus on foundational, supporting, and high-tech industries. This vision not only paves the way for foreign investment but also encourages Vietnamese enterprises to boost innovation and deepen integration into global value chains.

In the first half of 2025, Vietnam’s industrial sector continued to show strong momentum. The Industrial Production Index rose by 8.6% year-on-year, with July alone seeing an 8.5% increase. The sector’s added value in Q1 climbed 7.32%, contributing 2.39 percentage points to national GDP growth. These figures reaffirm investor confidence in Vietnam’s sustainable industrial expansion.

Supporting this growth is a wave of infrastructure investment. Major projects such as the North–South Expressway, Belt Roads 3 & 4, metro systems in Hanoi and Ho Chi Minh City, seaports, and Long Thanh International Airport are high priorities. By Q3 2024, industrial land in Northern Vietnam reached approximately 16,700 hectares—up 16% year-on-year—with average rental prices around USD 130/m², a 5.7% increase. These developments are creating a highly competitive investment environment within the region.

Investment policy is another key pillar of Vietnam’s attractiveness. As of July 1, 2025, several new incentives have come into effect, offering substantial benefits for businesses in high-tech, digital infrastructure, R&D, and specially designated zones. These include corporate income tax exemptions for the first four years, a 50% tax reduction for the following nine years, and preferential rates of just 10% for up to 15 years for qualified large-scale or strategic projects. Machinery, equipment, and raw materials not yet produced locally are also eligible for import tax relief.

Regarding land use, businesses may enjoy full or partial rental exemptions for 7–15 years—or the entire lease term in high-tech zones and key economic areas, with land leases extendable up to 70 years. Meanwhile, Decree 97, in effect since May 5, 2025, provides special support to National Innovation Centers and enterprises active in R&D, technology, and workforce training. These policy shifts reflect the Vietnamese government’s clear commitment to supporting industrial innovation and reinforcing confidence among long-term foreign investors.

Beyond rapid growth, Vietnam is setting its sights on building a smarter, greener, and more sustainable industrial base. By 2025, goals include nationwide fiber-optic coverage and the rollout of 5G in provinces, cities, high-tech parks, ports, and airports. The digital economy is projected to contribute 20% of GDP by 2025 and reach 30% by 2030—evidence of Vietnam’s resolve to embrace technological transformation and global trends.

At the same time, small and medium-sized enterprises (SMEs) are being actively encouraged to participate in global supply chains. Adopting international standards, strengthening innovation capabilities, and developing eco-friendly production models are now essential for improving competitiveness. Real-world examples of green factory design, energy efficiency, and emission reduction are being shared widely,offering valuable lessons for Vietnamese enterprises to scale up sustainable practices.

All things considered, Vietnam is shaping an industrial investment environment that offers a rare blend of political stability, a skilled labor pool, clear incentive policies, and rapidly advancing infrastructure. Its strong commitment to green technology, high-value industry, and sustainable growth has made the country a rising star on the global investment map. For forward-thinking investors, this is a pivotal moment to seize opportunities and grow alongside Vietnam’s industrial transformation.

Source: Industry and Trade Magazine