Vietnam's Infrastructure Boom Under President To Lam

In 2025, Vietnam initiated over 550 infrastructure projects, marking a significant investment of approximately US$200 billion (S$254.78 billion). This ambitious construction drive includes the development of the world's largest stadium, Southeast Asia's biggest exhibition hall, and extensive road, aviation, and energy projects. The push is overseen by To Lam, who was appointed as President on April 7, 2025, and is recognized as the most powerful leader in Vietnam in decades. His leadership is characterized by aggressive reforms aimed at achieving double-digit economic growth and enhancing living standards.

The Straits TimesThe Diplomat MagazineGlobal TimesWorld leaders congratulate General Secretary and President To Lam

To Lam's rise to power follows a period of collective leadership, breaking from the traditional model where Vietnam's leadership roles were distributed among different officials. His dual role as General Secretary of the Communist Party and President consolidates authority, raising concerns about the potential erosion of collective governance. Analysts suggest that while this consolidation may facilitate quicker policy implementation, it could also lead to increased authoritarianism and reduced space for dissent.

The Diplomat Magazine

The infrastructure projects are expected to bolster Vietnam's GDP, with a goal to elevate the country to upper middle-income status by the end of the decade. However, the financing strategy, which involves heavy borrowing and courting private investors like Vingroup, carries fiscal risks. Critics warn that the lack of financial transparency could lead to corruption and mismanagement, potentially resulting in "white elephant" projects that drain public resources. Concerns have been voiced by experts, including Professor Tuong Vu, who highlighted the risks of overheating the economy and increasing public debt.

The Straits Times

The rapid development has not come without controversy. Many residents, such as 62-year-old farmer Chung, have been displaced from their land to make way for these mega-projects. Chung expressed skepticism about the benefits of the new stadium, questioning its utility for the local community. Similar sentiments were echoed by other displaced individuals, who feel that luxury developments cannot replace the farmland that has sustained their families for generations.

The Straits Times

To Lam's election has garnered international attention, with leaders from China, Laos, and Russia extending their congratulations. Chinese President Xi Jinping emphasized the strategic significance of Vietnam-China relations, while Russian President Vladimir Putin highlighted the broad support for Vietnam's socio-economic development path. As Vietnam embarks on this ambitious infrastructure agenda, the balance between rapid growth and sustainable development remains a critical challenge.

Global Times

• “We cannot accept low economic growth,” — To Lam, President of Vietnam

The Straits Times

• “Given the lack of financial transparency involved in these mega-projects, one cannot rule out the possibility that they are simply ways for government officials to steal from the state,” — Professor Tuong Vu, University of Oregon

The Straits Times

• “A luxury resort for the super-rich cannot replace farmland that has sustained the community for generations, she said.” — Local resident

The Straits Times

There are differing opinions on the potential economic benefits versus the risks associated with the rapid infrastructure development. While some analysts predict significant GDP growth, others caution against the dangers of inflation and fiscal strain. The exact impact on local communities and the long-term sustainability of these projects remains to be seen.

The Straits Times