Vietnam Infrastructure Spotlight May 2026

We are pleased to share the May edition of our Vietnam Infrastructure Spotlight newsletter. In this issue, we highlight recent legal and market developments in Vietnam's infrastructure sector.

Whether you're actively exploring new opportunities or simply keeping a close eye on market trends, we hope you find these insights both timely and valuable.

FRESHFIELDS BLOGS

We are pleased to share our recent blog which identifies six forces shaping Vietnam's infrastructure investment landscape from 2026 through 2030 and the opportunities for foreign investors in Vietnam. Source: Freshfields website

MARKET UPDATES

Japan – Vietnam strategic partnership

During the Japanese Prime Minister’s visit to Vietnam on 2 May 2026, Vietnam and Japan agreed to deepen cooperation in key economic security areas, including energy, critical minerals, AI, semiconductors and space. Key initiatives include advancing energy cooperation under the “POWERR Asia” framework (including support for the Nghi Son refinery), strengthening rare earth supply chains, developing Vietnam-focused AI models under a bilateral MoU, and expanding the use of satellite data and public–private partnerships (PPPs) in the space sector. Source: The Ministry of Foreign Affairs of Japan

Korea – Vietnam strategic partnership

During South Korean President Lee Jae Myung’s visit to Vietnam in April, both countries reinforced their Comprehensive Strategic Partnership and advanced a range of business and policy initiatives. The visit delivered significant outcomes, with companies from both countries signing 73 MoUs across energy, technology, infrastructure and finance, alongside 12 government-level cooperation agreements covering various priority sectors. South Korean companies also signalled strong interest in participating in Vietnam’s large-scale projects, particularly in high-speed rail and potential nuclear power development. Source: Vietnam Government news

US - Vietnam LNG cooperation

Vietnam and the United States are stepping up cooperation to develop the liquefied natural gas (LNG) market, including expanded participation by leading US companies such as Cheniere Energy, ExxonMobil, and Excelerate Energy. Discussions have focused on LNG supply, import infrastructure, gas-to-power projects and broader energy technology solutions, alongside policy and investment frameworks to support project implementation. The push comes as Vietnam accelerates LNG development under its energy transition strategy, targeting significant additions of gas-fired capacity and increasing LNG imports by 2030 to meet rising power demand and reduce reliance on coal. Source: Vietnam Energy

North-South high-speed railway

Vietnam aims to select contractors for its North-South high-speed railway project in the second quarter of 2026. Numerous investors have expressed their interest in this mega railway project:

• France. A delegation of around 15 leading French companies and industrial groups has expressed interest in participating in Vietnam’s planned North–South high-speed railway project. At the France–Vietnam Forum on Railways and Urban Mobility 2026, held on 8 May in Hanoi, French conglomerates and railway specialists engaged with Vietnamese authorities and industry stakeholders to explore long-term partnerships. Participants included ACC M/Lorrainfer, Alstom, Artelia, Certifer, Compagnie des Signaux, Dassault Systèmes (3DS), EPC Groupe, Laco Industries, Neotec, NGE Group, Saint-Gobain, SNCF International, Systra, Texelis and Vossloh. Source: Vietnam News
• Korea. Hyundai Rotem is seeking to expand its footprint in Vietnam’s rail sector, including potential participation in the North–South high-speed railway and upcoming metro projects. The company offers capabilities across rolling stock manufacturing, system integration, workforce training, and progressive localisation of production and maintenance. Last December, Vietnamese conglomerate Thaco signed a strategic partnership with Hyundai Rotem to localise the production of locomotives and carriages for metro and high-speed rail projects. Source: The Investor
• Viettel and Hoa Phat Steel. Viettel and Hoa Phat have also expressed interest in participating in the North–South high-speed railway project. Viettel has indicated its capabilities in the research and development of centralised operating systems, signalling and control systems, operations control centre solutions, and intelligent management platforms to support high-speed rail operations. Hoa Phat Group has proposed involvement in the research and production of rails, large-span steel structures, and mechanical materials for the project’s construction and maintenance. Source: Vietnam.vn

Metro

• HCMC. A consortium between Becamex IDC and Thaco has proposed investing more than $4.71 billion to build two metro lines connecting Ho Chi Minh City with the adjacent Binh Duong. The first, costing $2.44 billion, would span over 32.4 kilometers while the second, worth $2.28 billion, would run 24.2 kilometers. Source: The Investor
• Da Nang. Thaco’s Dai Quang Minh Real Estate has been granted permission by the city’s People’s Committee to prepare a project proposal for the metro line under a PPP model. Stretching more than 103 kilometers, the total investment is estimated at around $10.1 billion. Construction should start in 2027 and be composed of the first 30.2-kilometer phase and a second 73.6-kilometer segment. Source: The Investor
• Hanoi - Quang Ninh. Vingroup, through its subsidiary VinSpeed, commenced construction in April 2026 of a $5.6 billion, 120 kilometers high-speed railway linking Hanoi and Quang Ninh, with completion targeted for 2028. Source: Vietnam News

Automotive

• Conditional business sector. Vietnam’s three largest automotive groups – Thaco, VinFast and TC Group – have urged the government to retain automobile manufacturing, assembly and import activities as conditional business sectors, warning that deregulation could undermine long-term industrial development and expose domestic producers to unfair competition. The proposal responds to draft amendments by the Ministry of Finance aimed at simplifying business conditions by removing these activities from the conditional investment list. In submissions to the Prime Minister and relevant ministries, the automakers emphasised the sector’s strategic importance, citing its spillover effects on employment, industrial capacity and public safety. Source: The Investor
• Asset-light strategy. VinFast has announced a major restructuring of its Vietnam operations, pivoting towards an “asset-light” model to support global expansion. Under the plan disclosed on 12 May 2026, the company will separate its manufacturing arm, VinFast Trading and Production JSC, from core business functions and divest its entire stake in the entity to an investor consortium in a transaction valued at approximately US$530 million. The move is expected to reduce capital expenditure requirements and improve financial flexibility, allowing VinFast to focus on technology development, brand building and international growth amid increasing competition in the EV sector. Source: Reuters
• EV transport JV. Xuan Cau Holdings, Petrolimex and Selex Motors launched green energy venture for EV transport. The venture aims to develop a nationwide green energy infrastructure network, combining Petrolimex’s extensive fuel station system with EV charging, battery swapping and renewable energy solutions in the future. Source: Bizhub
• Nationwide EV charging network. The Ministry of Construction is seeking to develop a model to encourage the participation of the private sector in building a nationwide EV charging network, with a focus on mobilising private resources and expanding PPPs. Source: Vietnam News

Real Estate

• North Hanoi Smart City. Authorities have urged Sumitomo and BRG to accelerate the $4.2 billion, 270-hectare North Hanoi Smart City following the completion of legal procedures. The project, which broke ground in August 2025 after prolonged delays, is being developed by their JV in five phases as an integrated urban development comprising residential, commercial, financial and public infrastructure components. Source: The Investor
• Hanoi massive urban replanning. Hanoi is planning massive replanning of Red River corridor, relocation of riverside communities. Hanoi plans to gradually relocate and reorganize all residential areas outside the Red River dike system as part of an ambitious urban redevelopment strategy aimed at transforming both banks of the river into a new economic and cultural corridor for the capital. Source: The Investor
• Artificial islands near HCMC. Vingroup is offering to build two artificial islands as part of its plan to develop a sea road in HCMC between the mangrove area in Can Gio and the beach town of Vung Tau. The proposed 14-kilometer sea route, designed with six or eight lanes and including a 3.1-kilometer undersea tunnel, has already been approved in principle. Source: VnExpress International

Technology

• AI data centre. South Korea’s SK Group is stepping up its presence in Vietnam with plans to develop an AI data centre linked to the Quynh Lap LNG-to-power project in Nghe An province. Source: The Investor
• Data centre chips.  Intel is relocating a production line for data centre chips from Costa Rica to its Vietnam facility located in the Saigon Hi-Tech Park, reinforcing the Southeast Asian country’s role in the giant's global supply chain. Source: The Investor
• Hi-Tech data hub. The HCMC People’s Committee approved four high value-added potential projects for the Saigon Hi-Tech Park totalling a combined registered capital of $1.23 billion and the construction of a $2.1 billion AI data centre. This follows HCMC’s target of attracting four semi-conductor projects this year with partners such as AMD, NVIDIA and Qualcomm. Source: Vietnam Investment Review
• IFC interest. The international investment community is reportedly showing strong interest in HCMC’s International Finance Centre, with more than $19 billion in committed capital currently awaiting finalisation of the regulatory framework to be disbursed. HCMC has organised roadshows in the United States and has received significant interest from investors. Source: Vietnam Investment Review

Oil & Gas

• Signing. Singapore-headquartered oil and gas player Jadestone Energy has signed a gas sales and purchase agreement with PV Gas (a subsidiary of state-owned Petrovietnam) for the supply of gas from the Nam Du/U Minh discoveries offshore in Vietnam. The Nam Du/U Minh discoveries are located offshore southwest Vietnam in shallow waters, with production targeted to start in late 2028. Source: Offshore Energy

Power

• Cooperation for new power sources. Vietnam Electricity signed an MOU to strengthen cooperation with leading South Korean groups Hyosung Heavy Industries and Korea Electric Power Corporation (KEPCO) to explore investment in new power sources and grid modernisation. The partnerships focus on advanced power technologies, energy storage, transmission systems and the development of new-generation power projects. Source: Vietnam Energy
• New design for new nuclear power. The KEPCO and PetroVietnam have signed an MoU, creating a framework for the entry of South Korean-designed new-build nuclear power plants in Vietnam. Source: Vietnam Investment Review
• VinFast scraps LNG. Vingroup has decided to abandon its plans to build a 4.8-gigawatt LNG-fired power plant, which would have been the largest in Vietnam, and to turn to renewables for the project due to rising prices of fuel, demonstrating the effect of the Middle East war on business. Source: Reuters
• Floating solar projects. State-owned EVNGENCO1 is proposing three floating solar power projects on hydropower reservoirs in Lam Dong province, with a combined capacity of nearly 270 MW and estimated investment of around VND4.4 trillion. The projects are intended to optimise the use of existing reservoir infrastructure, add clean energy to the national grid, and support Vietnam’s green energy transition in line with the revised Power Development Plan VIII. Source: Vietnam Plus
• Quynh Lap LNG power project. A consortium comprising PV Power, Nghe An Sugar Co. Ltd. and South Korea’s SK Innovation has commenced construction of the $2.25 billion Quynh Lap LNG-to-power project in central Vietnam. Located in Nghe An province, the project will utilise LNG for power generation and includes associated LNG storage and supporting infrastructure. Source: The Investor
• Ca Na LNG power plant. An investment agreement for the Ca Na LNG-fired power plant and a credit agreement for Ca Na Wharf Complex – Phase 1 in the south-central province of Khanh Hoa, worth more than $2.3 billion in total, were signed on 10 April 2026. Source: Vietnam News

Ports

• Lien Chieu container port.P. Moller-Maersk’s APM Terminals B.V. and Hateco Group have signed a $1.7 billion contract with Da Nang City, marking a step forward in the development of Central Vietnam. The port will have a designed capacity of 5.7 million TEU, aiming to reach 4 million TEU annually within the first three years. Source: The Investor
• Can Gio transshipment port. HCMC has approved of Vietnam Maritime Corporation (VIMC), Saigon Port, and Terminal Investment Limited Holding to build the $4.9 billion Can Gio International Transshipment Port, a project designed to position Vietnam as a regional container hub. Source: Vietnam Investment Review

Aviation

• A new airport in Hanoi. Hanoi is planning to develop a second international airport in the southern part of the capital, envisioned as an integrated “airport city” linked to a free trade zone, logistics hub and high‑tech industries under a long-term master plan. The proposed site is in the Ung Hoa – Chuong My area, around 40 kilometers south of the city centre. The airport is planned to international standards, with a designed capacity of 30–50 million passengers and approximately 1 million tonnes of cargo annually. Source: VN Express International
• Gia Binh International Airport. On 12 May 2026, Ireland’s daa International was appointed as the strategic and operational partner for Gia Binh International Airport in Bac Ninh province, a major new aviation project aimed at enhancing Vietnam’s connectivity, trade, logistics and tourism. The airport, currently under construction approximately 40 kilometers from Hanoi, forms part of the country’s broader push to support economic growth, regional development and greater global integration. Source: Vietnam Investment Review
• Sun Phu Quoc Airways. Sun Phu Quoc Airways has proposed increasing its fleet size to 100 aircraft by 2030, instead of the previously approved 31. This move demonstrates the airline's ambitious plan to accelerate growth amidst the recovery of the international aviation market, particularly in the tourism and long-haul connecting routes. Source: Vietnam.vn

Mineral

• Rare earth ore. Vietnam blocks export of 84 tonnes of radioactive rare earth ore. Authorities have seized 84 tonnes of monazite, a radioactive rare earth ore, and detained a company director allegedly preparing to export the material. Rare earths are critical inputs for electric vehicles, wind turbines, consumer electronics and defence systems. The incident follows a broader crackdown: in May 2025, a Hanoi court convicted more than 20 officials and business figures, including a former deputy minister of natural resources and environment, in connection with the illegal exploitation and export of rare earths. Source: VnExpress International