Viet Nam - Public Investment for a High-Performing Economy - World Bank Policy Note - Amendments to Public Investment, State Budget, Procurement, Public Asset and Public Debt Management Laws

Jul 19, 2026

Public investment is positioned as a crucial driver of Viet Nam’s economic and social development, alongside continued infrastructure progress by the Government of Vietnam. The policy note identifies major opportunities to raise value-for-money through stronger allocative efficiency—aligning resource allocation with development priorities—and operational efficiency by reducing excessive costs and delays. Key constraints span weak project prioritization, inadequate screening at entry, rigid selection and budgeting, inefficient implementation, and limited monitoring and ex-post evaluation, including procurement, asset management, regional linkage barriers, and ODA/CF planning complexities.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages63

Reading Time2 h 39 min

AccessFree to download

Executive Summary

Main text

1. The Role of Public Investment in Viet Nam’s Future Development

2. The Public Investment Management System in Viet Nam

3. Impediments to Regional Investments and Linkage Programs

4. ODA and Concessional Financing Management

5. The Revisions to the Public Investment Law in 2024

6. Strategic Recommendations

Annexes

Public Disclosure Authorized Public Disc losure Authorized Public Disclosure Authorized | | | | --- | --- | | |

EN JEUX MOD ERNE S D ’U NE VILL E MIL LÉN AIRE
VIET NAM: | PUBLIC INVESTMENT FOR A HIGH-PERFORMING ECONOMY WORLD BANK POLICY NOTE FOR THE AMENDMENTS TO THE PUBLIC INVESTMENT, STATE BUDGET, PROCUREMENT, PUBLIC ASSET AND PUBLIC DEBT MANAGEMENT LAWS Pub lic Disc losure Authorized This policy note presents a comprehensive analysis of Viet Nam’s public investment management (PIM) system, and strategic recommendations to make the system work better in meeting the country’s development needs. The preparation of this note is a collaborative e ort of the core team of Quyen Hoang Vu, Marc Robinson, Dung Viet Do, and PhuongAnh Nguyen with contributions from (in alphabetical order) Anand Rajaram, Chiara Odetta Rogate, Dorsati Madani, Guo Li, Kalesh Kumar, Kien Trung Tran, Ha Thi Thanh Nguyen, Halla Maher Qaddumi, Hang Diem Nguyen, Huong Thi Lan Tran, James Anderson, Jay-Hyung Kim, Jorge Martinez, Lars Jessen, Mai Thi Phuong Tran, Marc Forni, Phuong Hoang Ai Nguyen, Sean Michaels, Serdar Yilmaz, Simon Groom, Son Duy Nguyen, Tu Anh Vu Thanh, Tuan Minh Le, Tung Duc Pho, and Zayra Romo. It bene􀀞ted signi􀀞cantly from discussions with the Ministries of Planning and Investment, Finance, and Transport; Departments of Planning and Investment, and Finance of Da Nang city and Ho Chi Minh city; the Central Economic Commission; the Finance and Budget Committee of the National Assembly; Scholars working on the Mekong Delta Region; Vietnam Chamber of Commerce and Industry and Vietnam Logistics Business Association; as well as many World Bank colleagues working on public and linkage investment issues. Overall guidance was provided by World Bank management including Mariam J. Sherman (Division Director), Kathleen A. Whimp (Operations Manager), and Andrea Coppola (Lead Economist and Program Leader) for Viet Nam, Cambodia, and Lao PDR; and Alma Kanani and Oleksii Balabushko (Practice Managers) of the Institutions Global Department, East Asia and Paci􀀞c region. 􀀞􀀝 􀀛􀀚􀀙􀀘􀀗􀀖􀀕􀀔􀀝􀀓􀀒 􀀑􀀚􀀐􀀚􀀕􀀓􀀒 􀀗􀀝􀀘􀀚􀀏􀀔􀀘􀀖􀀎􀀔􀀚􀀘􀀓 􀀖􀀘􀀗 􀀚􀀎􀀞􀀝􀀕 􀀔􀀘􀀍􀀚􀀕􀀏􀀖􀀎􀀔􀀚􀀘 􀀓􀀞􀀚􀀌􀀘 􀀚􀀘 􀀖􀀘􀀋 􀀏􀀖􀀊 􀀔􀀘 􀀎􀀞􀀔􀀓 􀀌􀀚􀀕􀀉 􀀗􀀚 􀀘􀀚􀀎􀀔􀀏􀀊􀀐􀀋 􀀖􀀘􀀋 􀀈􀀙􀀗􀀇􀀝􀀏􀀝􀀘􀀎 􀀚􀀘 􀀎􀀞􀀝 􀀊􀀖􀀕􀀎 􀀚􀀍 􀀞􀀝 􀀆􀀚􀀕􀀐􀀗 􀀅􀀖􀀘􀀉 􀀑􀀚􀀘􀀑􀀝􀀕􀀘􀀔􀀘􀀇 􀀎􀀞􀀝 􀀐􀀝􀀇􀀖􀀐 􀀓􀀎􀀖􀀎􀀙􀀓 􀀚􀀍 􀀖􀀘􀀋 􀀎􀀝􀀕􀀕􀀔􀀎􀀚􀀕􀀋 􀀚􀀕 􀀎􀀞􀀝􀀝􀀘􀀗􀀚􀀕􀀓􀀝􀀏􀀝􀀘􀀎 􀀚􀀕 􀀖􀀑􀀑􀀝􀀊􀀎􀀖􀀘􀀑􀀝 􀀚􀀍 􀀓􀀙􀀑􀀞 􀀛􀀚􀀙􀀘􀀗􀀖􀀕􀀔􀀝􀀓􀀄 VIET NAM: PUBLIC INVESTMENT FOR A HIGH-PERFORMING ECONOMY WORLD BANK POLICY NOTE FOR THE AMENDMENTS TO THE PUBLIC INVESTMENT, STATE BUDGET, PROCUREMENT, PUBLIC ASSET AND PUBLIC DEBT MANAGEMENT LAWS CONTENT Executive Summary 6 Main text 1. The Role of Public Investment in Viet Nam’s Future Development 8 Public investment and Viet Nam’s development needs 8 Substantial scope to increase investment efficiency 12 2. The Public Investment Management System in Viet Nam 18 A bureaucratic PIM system 18 Low quality-at-entry due to inadequate project screening 19 Inflexible selection and budgeting processes 21 Inefficient project implementation and inadequate monitoring and ex-post evaluation 23 Weaknesses in the procurement process 24 Inadequate public asset management 25 3. Impediments to Regional Investments and Linkage Programs 26 Increasing decentralization of capital spending and allocative efficiency 27 Legal and institutional impediments to linkage investments 29 4. ODA and Concessional Financing Management 34 Unclear strategies and approach to ODA/CF planning and prioritization 35 Complex regulatory environment for both project preparation and implementation 36 Inflexibility in making use of innovative financing instruments 38 A renewed approach in ODA/CF is needed 39 5. The Revisions to the Public Investment Law in 2024 40 Institutionalizing piloted policies and mechanisms 40 Decentralization and delegation to remove execution delays 41 Improvement of the quality of project preparation and prioritization 41 Medium-term and annual investment plan 42 A new cha

FAQs

How can Viet Nam increase the value-for-money from public investment?

By improving allocative efficiency through better alignment of resource allocation with development priorities, and by improving operational efficiency through reductions in excessive project costs and delays.

What weaknesses are highlighted in Viet Nam’s public investment management system?

The note points to inadequate project screening leading to low quality at entry, inflexible selection and budgeting, inefficient implementation with insufficient monitoring and ex-post evaluation, procurement weaknesses, and inadequate public asset management.

What does the policy note recommend regarding the Public Investment Law revisions in 2024?

It emphasizes institutionalizing piloted policies and mechanisms, decentralizing and delegating to reduce execution delays, improving project preparation and prioritization quality, planning through medium-term and annual investment plans, and adding a new chapter on ODA/CF management.

Jul 19, 2026

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