Vietnam Country Profile 2025: Economic Growth, Trade, and Investment Outlook

Introduction 

Vietnam continues to stand out as one of Southeast Asia’s most dynamic markets. In 2024, the country achieved a GDP growth of 7.1%, making it one of the fastest-growing economies in the region. With a population exceeding 100 million, a rising middle class, and annual infrastructure spending of nearly 6% of GDP, Vietnam country is proving to be more than just a manufacturing hub. Moreover, it is becoming a strategic growth market for global investors. Our Vietnam Country Profile explores: 

• Vietnam’s economic growth; 

• Trade balance; 

• Foreign direct investment in Vietnam; 

• Supply chains. 

Therefore, it gives investors a practical view of opportunities and challenges for 2025 and beyond.  

If you are looking for a comprehensive overview of Vietnam economy and trade, you are in the right place. Let’s dive in with us! 

Vietnam’s Economic Growth and Development 

Vietnam’s economic expansion has been consistently above the global average. In 2024, GDP grew by 7.1%, outperforming most ASEAN peers. Strong consumption, robust exports, and targeted government reforms drive growth. 

Several key factors define Vietnam economy 2025 outlook, as follows: 

• GDP per capita rose to over USD 4,700 in 2024, continuing its steady climb toward upper-middle-income status. 

• Infrastructure investment, averaging 6% of GDP, has transformed transportation networks and industrial zones. 

• A rising middle class is reshaping consumption patterns, with higher demand for quality products, education, and digital services. 

• Political stability and a pro-business regulatory climate continue to attract investors. 

So, what does this mean for investors? 

Vietnam is not only a low-cost manufacturing base but also an emerging consumer market. As a result, companies in retail, e-commerce, healthcare, and education will find long-term growth potential alongside manufacturing expansion.

Vietnam in Global Trade 

Vietnam has become one of the most open economies in Asia, and as a result, trade now plays a central role in its growth story. The country’s ability to expand exports while managing a healthy trade balance highlights its competitiveness on the global stage. 

Especially, Vietnam has firmly established itself as a trade powerhouse, deeply integrated into global supply chains. 

• Total Vietnam exports reached USD 405.5 billion in 2024, a 14.3% increase from 2023. 

• Total Vietnam imports stood at USD 380.8 billion, a 16.7% rise. 

This created a Vietnam trade balance surplus of approximately USD 24.7 billion. Consequently, it shows Vietnam is expanding its production. 

 Insight for business:  

The Vietnam trade surplus highlights its strength in electronics, textiles, and consumer goods. For exporters, Vietnam’s reliance on imported machinery and raw materials signals consistent demand for industrial inputs. Therefore, suppliers can expect strong market opportunities.

Key Trade Partners and Vietnam Trade Deals 

Vietnam’s open economy is underpinned by strong trade relations and multiple free trade agreements. 

• United States. Vietnam’s largest export market with USD 119.5 billion in shipments in 2024, up 14.3% year-on-year. This confirms the strength of US and Vietnam trade relations. 

• China. Largest import partner with USD 144 billion in goods exchanged. Despite a trade deficit, China is still vital for raw materials and inputs. Nevertheless, Vietnam is reducing its overdependence on Chinese imports by diversifying supply chains.

• European Union: Vietnam’s exports to the EU exceeded USD 64.9 billion in 2024, supported by the EVFTA, which will remove 99% of tariffs by 2030. Moreover, this deal strengthens Vietnam’s access to one of the world’s largest markets.

• ASEAN and South Korea: Both stay crucial for machinery, intermediate goods, and consumer products. 

The Vietnam Trade Deal with the United States 2025

In April 2025, the U.S. announced plans for a 46% tariff on Vietnamese imports as part of its “Liberation Day” policy. After intense negotiations, the final deal in July reduced tariffs to 20% on Vietnamese goods, with a 40% duty only on re-routed Chinese products. In fact, this was seen as a major diplomatic win for Vietnam.

Implication for business: 

This Vietnam trade deal secures a significant tariff advantage over China, where duties can exceed 50%. For manufacturers, relocating production to Vietnam now reduces trade risks and ensures continued access to the U.S. market. 

Foreign Direct Investment in Vietnam 

Vietnam remains a magnet for foreign investors. In fact, Vietnam attracted USD 38.2 billion in registered FDI in 2024, signaling strong international confidence in its open and reform-oriented economy. At the same time, ongoing trade negotiations and supply chain diversification are strengthening Vietnam’s role as a global partner. 

FDI by Sector 

Vietnam continues to attract a wide range of foreign direct investment, with capital flowing into industries that support both export growth and domestic modernization. For example, electronics and green energy are leading the way. The following sectors are currently the top destinations for FDI: 

• Manufacturing and processing (electronics, textiles, furniture) 

• Green technology and renewable energy 

• Infrastructure and real estate development 

• Digital services and e-commerce 

Government Incentives 

The Vietnamese government is committed to sustaining this momentum by offering a mix of incentives designed to simplify procedures, reduce costs, and encourage sustainable growth. Furthermore, reforms now target sustainability and ESG compliance. Key measures include: 

• Streamlined digital administrative procedures for investors. 

• Tax relief and special economic zones (SEZs). 

• Incentives for green technology, digital economy, and advanced manufacturing. 

• ESG-aligned reforms, supporting sustainable and responsible investment. 

Insight for investors 

Vietnam country is positioning itself as a regional innovation and production hub. High-value industries such as green energy, AI, and smart manufacturing are being prioritized, creating opportunities for investors who align with this vision. 

Vietnam’s Strategic Edge in Global Supply Chains 

Vietnam’s role in global supply chains has grown significantly under the China+1 strategy. As global firms diversify operations beyond China, Vietnam is the leading alternative. Indeed, its central location and workforce advantages make it highly competitive.

• Geographic advantage: Central location in ASEAN with access to 600 million consumers. 

• Workforce: Young, skilled, and cost-competitive labor market. 

• Infrastructure: Rapid expansion of industrial parks, ports, and logistics hubs. 

• Stable environment: Political stability and investor-friendly reforms. 

What this means for business: 

Companies seeking Vietnam supply chain insights will find a secure and scalable platform. From electronics to furniture, Vietnam offers resilience against geopolitical risks while maintaining global competitiveness. Thus, businesses seeking stability should look closely at Vietnam.

Opportunities for Investors 

Vietnam’s modernization is opening new sectors for both foreign and domestic investors. 

• Consumer growth 

Rising disposable income is fueling demand for premium goods, education, healthcare, and entertainment. In addition, digital adoption makes Vietnam a top market for e-commerce and fintech expansion. 

• Green economy 

Government incentives are driving investment in renewables, recycling, and sustainable infrastructure. As a result, firms in solar, wind, and waste management will find policy support and market demand. 

• Manufacturing relocation 

Vietnam’s tariff advantage with the U.S. and multiple FTAs make it the preferred relocation base for global firms. Consequently, sectors such as electronics, furniture, textiles, and footwear are expanding in capacity. 

Investor takeaway: 

Those who align with Vietnam’s strategic priorities, such as green transition, digital transformation, and supply chain integration, will benefit from sustained growth. 

Vietnam Country Profile: Important Facts 

These indicators provide a snapshot of Vietnam’s strengths. Together, they highlight why Vietnam is a top destination for trade and investment.

Why Partner with Source of Asia (SOA)? 

Vietnam is not just a market for SOA. It is where our journey began. Headquartered in Ho Chi Minh City, SOA has more than 20 years of experience helping international companies succeed in Vietnam, ASEAN, and beyond. 

Our services include: 

• Market entry strategy and validation 

• Sourcing and supply chain management 

• Company formation and compliance 

• Business matchmaking and local partnerships 

• Sales development and distribution support 

• Building and managing local teams 

📩 Contact our team to explore how we can support your Vietnam growth story. 

📥 Download our Vietnam Country Profile 2025 for key facts, stats, and sector highlights. 

Download FREE Vietnam Country Profile 2025 for key facts, stats, and sector highlights. (Source: Source of Asia)

9. Final Words 

To sum up, Vietnam enters 2025 as a fast-growing economy, a trade surplus nation, and an FDI magnet. Despite global uncertainty, the country continues to attract investors with its cost competitiveness, strong supply chains, and expanding consumer base. Overall, Vietnam remains one of Asia’s most promising economies.

For businesses, Vietnam offers both short-term tariff advantages and long-term strategic opportunities. By partnering with experts on the ground, companies can turn Vietnam’s growth story into their own. In conclusion, the opportunities in Vietnam are too significant to ignore.