HANOI (Reuters) - Vietnam's National Assembly on Wednesday approved raising the economic growth target for this year and backed major infrastructure projects, including a rail link to China and the construction of the country's first nuclear power plants.

In an extraordinary session, parliament also adopted rules that would allow Elon Musk's Starlink to provide satellite internet services in Vietnam, while also maintaining full ownership of any local subsidiary. 

"The trial provision of broadband internet services using low Earth orbit in Vietnam is based on the principle of ensuring national defence and security," a parliamentary report said.

Lawmakers approved the government's proposed target of at least 8% growth in 2025, up from the previous goal of 6.5% to 7.0%.

"With faster economic growth, macro stability must still be ensured while inflation must be kept under control," the government said in a report to parliament. It said its inflation target was between 4.5% and 5.0% this year.

Parliament also approved a resolution for the construction of a new railway linking a major seaport in northern Vietnam with China. The project is expected to cost $8.3 billion, part of which will be funded by loans from the Chinese government. 

Vietnam, a regional manufacturing hub which relies heavily on exports to drive its economy, has been seeking to increase infrastructure investments to boost growth. 

"This rail line provides a strategic connection to China as it will also cross land rich in minerals and rare earths," said Nguyen Hung, a specialist in supply chains at RMIT University Vietnam.

Lawmakers also adopted policies to develop nuclear power plants in Vietnam, the first of which is expected to be completed in 2031. A plan to offer financial support to local firms that enter the semiconductor industry was also agreed.

On Tuesday, parliament approved a bold bureaucratic reform plan that will cut up to a fifth of government bodies, as the ruling party seeks to cut costs and improve administrative efficiency.