Vietnam: Country of the Future

Vietnam’s economy has been growing rapidly and diversifying, driven by strong exports, rising foreign investment, and integration into global markets.  In 2024 real GDP growth rebounded to roughly 7.1% , and international agencies forecast growth of about 6.8% in 2025 (versus roughly 5.0% in 2023).  Inflation has been contained (around 3–4%), and a large current-account surplus (about 6.6% of GDP in 2024 ) reflects resilient exports.  Policy makers have emphasized macro stability and infrastructure spending to sustain growth.  Robust FDI inflows support this momentum: in 2023 newly registered foreign investment hit ~$36 billion (up 32% YoY), while disbursed FDI was ~$23 billion .  About two-thirds of FDI went into processing/manufacturing .  Vietnam has also deepened trade ties – joining CPTPP, RCEP, the EU–Vietnam FTA and others – which studies estimate could boost GDP by a few percentage points over the next decade (e.g. EVFTA alone ~+2.4% by 2030).

• Growth & Outlook: Vietnam grew ~8% in 2022, cooled to ~5% in 2023 (COVID recovery fading), then surged ~7% in 2024 . The World Bank projects 6.1% in 2024 and ~6.5–6.8% in 2025–26 .  Growth is export-driven (export growth projected ~12% in 2025) with domestic demand also strengthening.  Inflation has stayed low (≈3–4%) under tight policy control .
• FDI & Trade: Vietnam remains a magnet for factories.  FDI stock stood at ~$468 billion (2023) , with major inflows from Korea, Japan, Singapore, etc.  Key sectors are electronics, machinery, textiles and footwear.  Global companies (Samsung, Foxconn/Apple, LG, Nike, etc.) are expanding operations to Vietnam, attracted by its strategic location and costs.  Vietnam is a signatory to nearly a dozen FTAs (e.g. CPTPP, EU–VN FTA, UKVFTA, ASEAN+ agreements), facilitating market access.  The World Bank finds that full implementation of Vietnam’s key trade deals (CPTPP+EVFTA) could raise GDP several percent over the next decade.  Current account balances are healthy – a record surplus (~6.6% of GDP) was recorded in 2024 , bolstering forex reserves.

Tourism Potential

Vietnam’s tourism sector has rebounded spectacularly since the pandemic.  International arrivals reached an all-time high of 21.2 million in 2025 – a 20.4% increase over 2024 .  Even before 2025’s year-end figures, the country saw 14.2 million foreign visitors in the first ten months of 2024 , up roughly 28% from the same period a year earlier.  Growth has been broad: China (5.28M arrivals in 2025), South Korea (4.33M), Taiwan, the US and India all sent more tourists .  Visa liberalization and marketing have helped attract Europeans too (double-digit growth across EU markets as of 2025) .  By some estimates Vietnam’s sector now exceeds 110% of pre-COVID levels , among the fastest recoveries in Southeast Asia.  Tourism is a government priority – a national master plan aims for 22–23M foreign tourists by 2025 and 35M by 2030, making tourism a ~13–14% contributor to GDP .  For context, Vietnam hit 110 billion USD in tourism revenue as of 2024, a sharp rebound from pandemic lows.

• Key Destinations: Vietnam’s appeal rests on diverse attractions.  UNESCO World Heritage sites (e.g. Ha Long Bay-Cat Ba, Hoi An Ancient Town, Hue Imperial Citadel, Phong Nha caves, My Son Sanctuary, Trang An, etc.) draw history and nature enthusiasts .  Beaches and resorts like Da Nang, Nha Trang and Phu Quoc are popular for leisure, while cities (Hanoi’s Old Quarter, Ho Chi Minh City’s skyline) and cultural festivals add urban interest.  Adventure and eco-tourism (tours in Sapa, Mekong Delta, Cai Be floating markets) are growing segments.  A recent award dubbed Vietnam “World’s Leading Heritage Destination” (2025) highlights its cultural sites.
• Tourism Infrastructure & Policy: Authorities are rapidly upgrading capacity.  An ambitious airport expansion plan targets 30 airports by 2030 (capacity ~295M passengers) .  Major projects include the new Long Thanh International Airport (Phase 1: US$5.5 billion) near Ho Chi Minh City , and upgraded regional airports (Tuy Hoa, Vinh, etc.) to boost tourism access.  Direct international flights have been added (e.g. HCMC–Copenhagen in late 2025), and airlines are expanding routes to China, India, Russia and beyond.  On the ground, hotel investment is surging: global chains (Marriott, Accor, Hilton, Ritz-Carlton, etc.) are opening new properties, including luxury resorts and ecotourism lodges .  The government has also eased entry rules – for example, 45-day visa-free access covers many Western tourists (24 countries as of 2025) , and “digital nomad”/long-term visas are under discussion.  Promotional campaigns, digital tourism platforms and discounts (up to 50% on travel packages) are being deployed to hit the 22–23M visitor target by 2025 .  These efforts – coupled with Vietnam’s rich culture, cuisine and scenery – are positioning it as one of Asia’s most dynamic tourism markets.

Manufacturing Sector

Vietnam has become a central node in global supply chains, especially for electronics and consumer goods.  Electronics and computer products are its top exports: in 2022 Vietnam shipped about $114.4 billion of computers, phones, TVs, chips, and parts, roughly 30% of total exports .  In that year alone, mobile phones were a standout (≈$57.9B of exports in 2022).  Multinationals have set up massive factories: e.g. Samsung (now Vietnam’s single largest FDI investor) produces millions of smartphones and TVs; Foxconn and its peers are assembling iPhones, iPads and now MacBooks; and other firms like LG, Panasonic and Sharp run electronics plants.  Vietnam is now often cited as the world’s 5th-largest exporter of electronics & components .  Beyond tech, Vietnam is also a leading apparel/footwear hub – in 2024 textiles/apparel exports were on track for ~$44 billion, putting that sector among the nation’s top three export categories .  Sports shoes, garments and furniture are other big export lines.  Notably, Vietnam benefits from factory-scale production: processing/manufacturing projects accounted for ~64% of FDI (about $23B) in 2023 , reflecting capital flowing into industrial parks.

• Global Supply Chains: Amid US-China trade tensions and rising China costs, companies have diversified into Vietnam as a “China+1” location.  Electronics parts flows link Vietnam to markets from the US to Europe.  The country has seen large projects like TSMC’s $15B chip plant (2021) and collaborations in EVs (VinFast partnering with Intel’s Mobileye on electric car chips, or with LG Chem/CATL on batteries) .  As a result, high-technology goods form a growing share of trade; indeed a recent UNESCO report notes high-tech exports exceed 36% of Vietnam’s trade .
• Labor & Costs: A key draw has been relatively low wages – recent surveys cite average factory workers earning $250–400 per month , substantially below China or Thailand.  (By comparison, Vietnam’s minimum wages range roughly $140–200 depending on region .)  Engineers in tech fields are also competitively priced and improving skills: Samsung reports 10% of its global software development is done by its Vietnam R&D teams .  Over the past decade wages have been rising (Vietnam+50% in 10 years, per some studies), but they remain attractive enough to shift production.  Inflation-adjusted costs are monitored by investors, and the government has kept corporate taxes and rents relatively low to retain manufacturing.  Non-wage factors (energy, ports, road bottlenecks) are challenges, but continued investment in roads, bridges and power plants aims to relieve congestion.

(*Data: Vietnam’s exports in these categories, e.g. footwear was $29.5B in 2023.)

Technology and Innovation

Vietnam’s tech ecosystem is rapidly maturing.  The digital economy is expanding at double-digit rates – as of 2024 it was worth roughly A$54.6 billion (≈US$37 billion) and grew ~16% year-on-year .  Internet penetration is high (~79% of population, with mobile subscriptions exceeding population), enabling e-commerce, fintech and online services to flourish.  Government e-governance is also advancing: Vietnam was ranked “Very High” on the UN E-Gov index in 2024 (71st globally) .

• Startup Scene: More than 4,000 tech startups now operate in Vietnam , aided by a wave of entrepreneurship and investment.  The country has produced two homegrown unicorns so far (e.g. VNG Group in gaming, VinShop e-commerce), and plans to cultivate “3–4 strategic” new unicorns by 2030 .  The emphasis is on high-impact fields: artificial intelligence, semiconductor design, green/clean tech, agri-tech, etc.  Indeed, the Ministry of Science & Technology reports ~765 AI/machine-learning startups in 2024, with private investment in AI jumping eightfold to US$80 million in that year .  Overall, Vietnamese startups raised about US$398 million in 2024 (across ~118 deals), a marked recovery in funding flows.  Major VC funds and accelerators (both domestic and international) are active, and the government has launched initiatives such as a national Venture Capital Fund (initial state capital ~$20M, aiming to $100M) and tax incentives for R&D.
• Digital & STEM Initiatives: Authorities are pushing education and research to match the tech push.  Education spending (~14–15% of national budget ) and STEM programs have expanded rapidly.  By 2024 about 90% of universities offered STEM curricula, and STEM fields accounted for ~36% of new university entrants .  The government is finalizing scholarships and favorable loan policies to attract students to science/tech majors .  A special focus is on semiconductors: Vietnam aims to train 50,000 chip engineers by 2030 under a national program, recognizing the strategic importance of semis in global value chains.
• Outcomes & Future: The shift toward innovation is reflected in trade and industry: high-tech exports (electronics, computers, IT products) exceed one-third of total trade .  Global tech companies are deepening Vietnamese R&D presence (e.g. Samsung’s large software-development centers , Intel and Microsoft labs in HCM City).  New tech parks and incubators (like Saigon Hi-Tech Park, FPT’s HQ, and Da Nang’s Innovation Zone) are attracting startups and multinationals alike.  Overall, Vietnam is transforming from a labor-intensive manufacturing base into a more knowledge-driven economy.  Continued reforms (e.g. streamlined tech licensing, IP protections, and start-up laws) are intended to cement its position as a regional tech hub.

Sources: Authoritative data from the World Bank, IMF, Vietnam Ministry of Planning & Investment, General Statistics Office, and leading industry analyses , among others. These illustrate Vietnam’s robust recent growth and strategic initiatives across economy, tourism, manufacturing, and technology sectors.