In seeking to reach upper middle-income status by 2030 and high-income status by 2045, Vietnam aspires to become a modern and industrialized nation with a higher quality of life for its citizens. After this brief introduction, the following section provides a background on the trends in the volume and efficiency levels of public investment in Vietnam, which are against its ambition for development. Section 3 analyzes the financial and opportunity costs and investment inefficiencies due to the lack of coordination. Section 4 reviews the key determinants that have hindered more coordinated efforts. Section 5 provides initial recommendations on the needed adjustments to the current frameworks, legal, institutional, incentives, and enforcement arrangements, to enhance vertical and horizontal coordination of regional investments, including those that are feasible within the existing legal framework and those would require revisions to applicable laws in the longer run.