VIETNAM Trends and Developments Contributed by: Tung Ngo, Ngan Nguyen, Hien Tran and Quynh Chi Nguyen, VILAF
Recent reforms signal a clear policy direction. These include mandatory ESG-related disclosures for certain enterprises, the introduction of a national green taxon - omy to guide environmentally eligible investments and the pilot development of a domestic carbon market to support emissions reduction and climate-aligned capital flows. In parallel, sustainable finance is expanding. Green bonds, green credit programmes and environmentally focused lending are gaining traction, strengthening the link between capital markets and sustainability objectives. However, the framework remains evolv - ing, with further clarity expected on carbon pricing, market operation and reporting standards. At the same time, these developments are reshaping Vietnam’s manufacturing and infrastructure sectors. While the country continues to benefit from its role in global supply chains, investment is shifting toward higher-value, technology-driven production, with stronger ESG requirements across supply chains. Key trends include: • increased automation and adoption of advanced technologies; • growing emphasis on ESG compliance and supply chain traceability; • continued expansion of logistics and infrastructure supporting trade and distribution; • closer alignment between industrial growth and sustainability objectives. Infrastructure development, particularly in transport, logistics and urban systems, remains essential but involves complex regulatory processes, including land acquisition and environmental approvals. For investors, these convergence points signal a transition toward more sustainable and higher-value economic activity, requiring integrated approaches to compliance, technology and long-term sustainability strategy. Metro and Transit-Oriented Development (TOD) Vietnam’s recent legal and policy framework has elevated metro infrastructure and transit-oriented
development (TOD) to core tools for reshaping urban growth, especially in Hanoi City and Ho Chi Minh City. Vietnam’s Capital Law 2024 expressly embeds “urban development oriented towards public transport” as a key planning principle for Hanoi City, laying the groundwork for higher-density, mixed-use develop - ment around metro corridors. At the national level, the National Assembly’s Resolu - tion 188/2025/QH15 adopts special mechanisms to accelerate urban rail and TOD, empowering major cit - ies to integrate land-use planning, financing and rail investment more flexibly. At the planning level, the adjusted master plan for Ho Chi Minh City to 2040 (Decision No 1125/QD–TTg) adopts public transport-oriented urban development as a core principle. The plan promotes the alignment of urban expansion, redevelopment of existing areas and infrastructure investment with transit systems, emphasising increased connectivity and improved land-use efficiency throughout the urban structure. A consistent direction is reflected in the adjusted master plan for Hanoi City to 2045 (Decision No 1668/QD– TTg), which also places urban rail and public transport networks at the centre of spatial organisation. In Ho Chi Minh City, these policies are being opera - tionalised through a dedicated TOD implementation plan along Metro Line 2 (Ben Thanh – Tham Luong), under which the People’s Committee of Ho Chi Minh City has defined TOD zones as the area within a 1,000-metre radius of stations and the depot selected for pilot implementation. The city’s approach focuses on using metro stations as focal points for compact urban clusters that integrate residential, commercial and office functions, with improved public spaces, pedestrian connectivity and reduced reliance on pri - vate vehicles. Complementing this, the government has proposed allowing Ho Chi Minh City to retain rev - enue generated from TOD-related land development to reinvest in urban rail and transport infrastructure, effectively creating a form of land value capture to fund metro expansion. In practice, these mechanisms are now visible in project-level decisions: Ho Chi Minh City has approved pilot TOD planning at five sites along Metro Line 2, while Hanoi City is integrating TOD concepts into new metro lines such as Line 3 (Nhon
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