Vietnam’s National Assembly today approved raising the country’s growth target for this year to at least 8%, up from 6.5%, and backed infrastructure projects including a railway to China and building the country’s first nuclear power plants, Reuters reports.
The government decided to step on the accelerator despite the risk of greater inflation. A report to the assembly noted that “macro-stability must still be ensured while inflation must be kept under control”. It added that the ceiling for price rises would be 5%.
A number of rail projects are being proposed between Vietnam and China (see further reading). The Parliament approved a link between the Haiphong seaport, whose $8.3bn price will be paid for by Chinese loans.
The link is intended to boost Vietnam’s drive to become a regional manufacturing hub. It hopes to take advantage of China’s move up the value chain, away from lower value assembly industries.
The line will also open up the development of land rich in minerals and rare earths.
Lawmakers also adopted policies to develop nuclear power plants in Vietnam (see further reading). The first of these is expected to be completed in 2031.
A plan to offer financial support to local firms that enter the semiconductor industry was also agreed.
Yesterday, parliament approved a plan to cut up to a fifth of government bodies, as the ruling party seeks to improve administrative efficiency and shift labour into more productive sectors.
The extraordinary session also adopted rules that would allow Elon Musk’s Starlink to provide satellite internet services in Vietnam, while also maintaining full ownership of any local subsidiary.
- Subscribe here to get stories about construction around the world in your inbox three times a week
Further reading:
