Vietnam becomes a 'bright star' in the economy

With a solid foundation and effective development strategy, Vietnam is increasingly affirming its position as a bright spot in Southeast Asia and the world.

Outstanding achievements amid global challenges

Step into 2024, Vietnam economy has continued to affirm its position as one of the fastest growing economies in Southeast Asia. According to the independent economic forecasting and analysis center CEBR (UK), Vietnam's GDP in 2024 will reach 450 billion USD, up one place compared to 2023, holding the 34th position in the world.

CEBR also predicts that by 2025, GDP Vietnam's per capita income will reach 4,783 USD, a significant increase from 4,469 USD in 2024, bringing Vietnam closer to the goal of upper middle income. Vietnam is expected to rank 124th in the world in terms of per capita income, marking a step forward in improving people's lives.

The World Bank (WB) and the Asian Development Bank (ADB) both forecast positive growth prospects for Vietnam. According to ADB, Vietnam’s GDP growth in 2025 could reach 6.6%, thanks to a strong recovery in manufacturing, trade, and supportive fiscal measures. Similarly, the WB raised its forecast for Vietnam’s economic growth to 6.5% in 2025.

According to the Institute of Southeast Asian Studies (ISEAS), Vietnam’s economic outlook for 2025 is quite positive thanks to export growth, strong foreign investment inflows, domestic reforms and increased infrastructure investment. However, Vietnam still faces major challenges such as global economic fluctuations, power shortages and weak consumer demand.

Import and export are one of the most prominent features of Vietnam's economy. (Photo: VGP/Manh Thang)

In the field of e-commerce, Vietnam is growing rapidly thanks to its young population and high level of social media integration. This is a great opportunity for businesses. According to a report by Google and Temasek, Vietnam's digital economy is estimated to reach 36 billion USD in 2024 and could increase to 90-200 billion USD in 2030. E-commerce will reach 22 billion USD in 2024 and could reach 63 billion USD in 2030.

Vietnam is also leveraging free trade agreements to expand B2B trade. The Vietnamese government is investing in digital infrastructure, improving connectivity and payments, facilitating cross-border e-commerce. Vietnam’s e-commerce market is forecast to exceed $25 billion by 2025, marking an important step in the digital transformation process.

Vietnam - a "magnet" attracting international investment

2024 continues to affirm Vietnam's attractiveness to international investors. According to the General Statistics Office, in the first 11 months of 2024, foreign direct investment (FDI) in Vietnam reached 21.68 billion USD, up 7.1% over the same period last year. Notably, this is the third consecutive year that FDI inflows have exceeded the 20 billion USD threshold.

Sectors such as renewable energy, real estate and high technology are spearheads attracting capital flows. In particular, the strategic cooperation agreement with NVIDIA to develop artificial intelligence (AI) is an important milestone, bringing Vietnam further up the global technology supply chain. According to research firm Statista, the AI market in Vietnam is expected to reach 753.4 million USD by 2024, with a compound annual growth rate of 28.36% in the period 2024-2030.

In addition to its achievements, Vietnam also aims to become a high-income country by 2045. According to the World Bank (WB) report “Vietnam 2045: Enhancing Trade Position in a Changing World”, to achieve this goal, Vietnam needs to maintain an average GDP per capita growth rate of about 6% per year in the next two decades.

Components production line at MCNEX VINA Co., Ltd., 100% Korean-invested, in Phuc Son Industrial Park, Ninh Binh province. (Photo: Vu Sinh)

The World Bank stressed that Vietnam needs to shift from low-value manufacturing to higher value-added industries and services. In addition, diversifying trade partnerships and attracting investment from the private sector are also considered key to helping Vietnam overcome fluctuations in the global market.

According to Ms. Manuela V. Ferro, World Bank Vice President for East Asia and the Pacific, Vietnam needs to make the most of free trade agreements to expand markets and reduce trade barriers. At the same time, strong investment in human resources, improving infrastructure and promoting innovation will create a sustainable foundation for growth.

In addition, Asian Development Bank (ADB) Country Director Shantanu Chakraborty also emphasized the role of public investment and institutional reform in maintaining growth momentum. He affirmed that public investment not only stimulates demand and employment, but also creates positive spillover effects to other economic sectors such as logistics and transportation.

Source