According to data from the Thai Chamber of Commerce and Industry in Vietnam, the country delivered some of the strongest GDP growth in ASEAN during 2025, expanding by 7% in the first two quarters and 8% in the third, bringing nine-month growth to 7%. This outpaced neighbours like the Philippines, Indonesia and Thailand, where growth rates were comparatively lower over the same period.
Vietnam aims to sustain this momentum and achieve an ambitious annual GDP growth target of 10% from 2026 to 2030, with a long-term goal of attaining high-income status by 2045. GDP per capita, estimated at around US$5,000 in 2024, is projected to rise to about US$8,500 by 2030, reflecting roughly a 60% increase. The government has also committed to reaching net-zero carbon emissions by 2050, aligning economic expansion with green goals.
Competitive Advantages and FDI Inflows
The article outlines several structural strengths bolstering Vietnam’s economic rise. With a population of about 106 million, nearly 70% are active in the workforce, providing a sizable labour pool. Wage levels are significantly lower than neighbouring countries—around 20% less than in Thailand—and electricity costs are about 35% lower than regional peers, making the country a cost-competitive location for manufacturing and services. Stable political and monetary policies, along with an export-oriented currency approach, further enhance its appeal
Foreign direct investment (FDI) reached approximately US$38 billion in 2024, exceeding Thailand’s US$32 billion. Importantly, more investment is flowing into high-tech and AI-related industries, marking a shift toward higher-value sectors. The government’s strategy includes administrative reforms, accelerated infrastructure development, human capital improvements and a planned shift to more sophisticated industries as part of a broader roadmap to high-income status.
Growth Drivers: Consumption, Investment, Government Spending, Trade
The Chamber identified four core components driving Vietnam’s economic structure in 2025:
- Consumption (~60% of GDP): Domestic demand is supported by a young population (average age 32) and a rapidly expanding upper-middle-income class, expected to reach 56 million by 2030. This emerging consumer base is boosting demand across various sectors, including food and basic goods.
- Investment (~25% of GDP): Both FDI registrations and disbursements have surged. Manufacturing and processing investment rose 45% and science and tech investment climbed over 100% year-to-date, with industrial property occupancy rates climbing from 53% to 79% in four years.
- Government Spending (~10%): Public expenditure has increased, particularly for infrastructure and human capital. Vietnam needs roughly US$245 billion in infrastructure investment through 2030, including training 50,000 semiconductor engineers by then. Private sector participation is also encouraged, with businesses expected to lead in infrastructure financing and integration into global supply chains.
- Trade (~5%) Exports reached about US$430 billion (up 16%), while imports reached US$410 billion (up 18%). Vietnam has 17 free trade agreements covering more than 60 countries, and its relatively favourable effective tariff rates support trade competitiveness.
Policy Reforms and Infrastructure Goals
Vietnam is pursuing reforms at both the central and provincial levels to streamline government operations, cut ministries, reduce public staffing, and push decentralised decision-making. A notable reform was the reduction of provinces from 63 to 34 to strengthen local governance. Infrastructure spending is set at about 7% of GDP in 2025 (about US$36 billion) for projects such as urban rail in Ho Chi Minh City, the Long Thanh Airport, a North-South high-speed railway, expanded highways, power grids, and even nuclear plants by 2030.
Conclusion
Vietnam’s strategic combination of demographic advantages, competitive costs, strong FDI, reform-oriented governance and infrastructure investment is positioning it as a dynamic economic centre in Southeast Asia. However, intense regional competition and external uncertainties like tariff shifts pose ongoing challenges.
Cre: Vietnam positions itself as a key Southeast Asian economic hub
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