HANOI, Vietnam – While Southeast Asia deals with trade friction and a shaky global outlook, Vietnam is strengthening its role as one of the region’s most important growth engines. Strong GDP gains, rising foreign direct investment (FDI) in high-tech fields, and wide-ranging state reforms are pushing the country towards its goal of high-income status by 2045.
Vietnam kept up strong momentum through 2025. Official figures show GDP rising by about 8% across the first three quarters, with third-quarter growth at 8.23% year on year. That pace put Vietnam at the front of the ASEAN+3 group, which also includes China, Japan, and South Korea.
Full-year growth forecasts for 2025 sit around 7 to 8%, well above many neighbours. ASEAN overall is expected to expand by roughly 4.4%. Indonesia is projected to be near 5%, Malaysia around 4.7 to 5%, the Philippines near 6%, Singapore about 4%, and Thailand below 3%. Groups such as AMRO have pointed to Vietnam’s 7% outlook as the strongest in ASEAN+3, backed by manufacturing output, export activity, and solid local spending.
This performance has come despite pressure from US tariffs and supply chain shocks. Vietnam’s government is still targeting at least 8% growth, supported by stimulus steps and a broader export mix.
High-Tech FDI Surges as Firms Rebalance Supply Chains
Vietnam continues to attract investors looking for competitive sites outside higher-cost markets. In 2025, FDI hit new highs, with disbursed capital above $23 billion in the first 11 months and total pledged investment above $33 billion.
A growing share is heading into high-tech work. Manufacturing and processing account for more than 80% of realised FDI, with more projects tied to semiconductors, electronics, AI, and renewables.
Investors from South Korea (including Samsung and LG), Singapore, Japan, Taiwan, and China are expanding their footprint. Many point to Vietnam’s advantages: a young and capable workforce across a population of more than 100 million, lower operating costs than several regional rivals, and a stable political setting.
Vietnam’s deeper role in global value chains, supported by free trade agreements, has also helped. Semiconductor and clean-energy projects stand out, matching global efforts to spread risk across supply routes.
Vietnam’s leaders have set a clear long-term plan. The country wants to move into upper-middle-income status soon, then reach developed, high-income status by 2045, its 100th year. That path calls for sustained annual growth of 7 to 10%, with a focus on productivity, innovation, and structural change.
The National Green Growth Strategy and related measures show a push for cleaner growth and higher value output. By 2045, Vietnam wants to be a modern, industrialised economy, with per-person income aligned with today’s high-income benchmarks.
Vietnam’s Big Infrastructure Plans Improve Links and Logistics
To back that vision, Vietnam has made infrastructure a top spending area. In 2025, investment targets reached about 7% of GDP, funding hundreds of projects worth billions.
A major milestone came on 19 December, when 234 large projects were launched or opened on the same day. The list included expressways, bridges such as Rach Mieu 2, Long Thanh International Airport (set to open ahead of schedule), high-speed rail routes, and renewable energy sites. The goal is to improve freight movement, cut delays, and bring better connections to areas such as the Mekong Delta and the Central Highlands.
Public-private partnerships are playing a bigger role, helping share costs while speeding up delivery.
Alongside new roads and airports, Vietnam has pushed major state reforms in 2025, described as the biggest shift since the 1986 Doi Moi changes. The country merged ministries, reduced provincial units from 63 to 34, and cut layers of administration by as much as 70% at the local level.
The focus is simple: fewer delays and easier business processes. The government also plans to move all business-related procedures online by the end of the year. Many approvals now run through online portals, which helps limit paperwork, reduce compliance costs, and give investors more confidence through clearer processes.
Net-Zero 2050 Pledge
Vietnam is also turning towards a cleaner growth model. The National Green Growth Strategy supports low-carbon development, more renewable power, and circular economy practices. Measures include support for green credit, cleaner production, and forest protection.
Wind and solar projects, along with the net-zero by 2050 pledge, continue to attract green investment. The shift helps manage climate risks and supports new jobs in cleaner industries, while keeping Vietnam competitive in the region.
The country still faces hurdles, including skills shortages, environmental strain, and outside trade risks. Even so, strong consumer demand, wider export markets, and active policy planning give Vietnam a solid base.
As 2025 ends, Vietnam’s shift is clear, moving from a low-cost production base towards higher-tech growth and more sustainable progress. Many analysts expect Vietnam to keep leading within ASEAN, with a real chance of becoming the region’s third-largest economy in the near term. For investors and partners, Vietnam offers scale, speed, and a growth story that keeps building year after year.
