Construction is progressing rapidly on what is set to become the world’s largest soccer stadium outside central Hanoi, Vietnam. Designed to resemble a traditional Vietnamese drum, the stadium will accommodate up to 135,000 spectators. Work on the project commenced in February, shortly before escalating conflicts involving the United States and Israel targeting Iran began to reshape the global economic landscape.

Despite ongoing geopolitical tensions and the resulting economic disruptions, including increased tariffs imposed by the United States under former President Donald Trump, Vietnam’s government is accelerating major infrastructure and urban development projects. Authorities are relying on large-scale investments to counter potential slowdowns in economic growth brought on by these external shocks.

Key state-backed corporations such as Vingroup, responsible for the stadium’s construction, have experienced significant growth amid this environment. Foreign manufacturing entities that have established Vietnam as a major export hub are also thriving. However, smaller domestic businesses face mounting challenges, often struggling with inflation, energy shortages, and pressure from urban redevelopment projects. Some local enterprises are being displaced, as illustrated by a family-owned bedding factory operating near the stadium site, which is slated for eventual redevelopment.

Pham Thi Mui, 36, a member of a family running one such small factory, expressed frustration at the difficulties smaller companies confront, emphasizing their vulnerability in the current economic climate: “We pour our hearts into everything, and we’re the first to suffer.” This situation highlights a growing disparity in Vietnam’s economy, where large firms consolidate strength while smaller businesses frequently falter.

Economists note that this divide is exacerbated by the government’s focus on rapid expansion, particularly through sectors like real estate, where state institutions and banks hold substantial investments. Jonathan Pincus, an economist at Fulbright University in Ho Chi Minh City, described Vietnam’s economy as “two-track,” with a small segment of wealthy firms largely disconnected from the vast majority of smaller enterprises, which account for about 95 percent of the country’s business landscape.

Vietnamese officials have recognized the importance of cultivating a robust domestic business sector for sustainable development. Nonetheless, with the ruling Communist Party targeting annual GDP growth rates of 10 percent but reaching only around 7 percent so far this year, authorities continue emphasizing large-scale investments and foreign capital attraction as critical components of their strategy. High-profile foreign investments remain a pathway for political advancement within the party, reinforcing the government’s preference for rapid industrial expansion.

While Hanoi remains wary of potential punitive measures from Washington due to its significant trade surplus with the United States, the country has successfully positioned itself as an attractive alternative for foreign firms relocating operations from China. This ongoing trend underscores Vietnam’s commitment to a globalist, growth-oriented economic approach amid continuing international uncertainties.