Vietnam’s Trade Expansion: A Global Perspective by 2025
By 2025, Vietnam’s ambitions in the realm of global trade have crystallized into impressive achievements. With trade relations spanning over 230 markets and the endorsement of 17 Free Trade Agreements (FTAs) with 65 economies, Vietnam has firmly established itself as a key player in both bilateral and multilateral trade. This extensive network places Vietnam among the most dynamic participants in the global marketplace.
A Booming Economy
Vietnam’s total import-export turnover reached an estimated $920 billion in 2025, which catapulted the country into the ranks of the world’s top 15 trading economies. This remarkable growth trajectory has unfolded over nearly four decades, largely accelerated by the Doi Moi (Renewal) reforms initiated in the late 1980s. The government’s commitment to deeper global integration has proven successful, as evidenced by the robust increase in trade activities.
Emphasis on International Trade
International trade has long served as a vital engine for Vietnam’s economic growth, increasingly perceived as essential for sustainable development. Since joining the World Trade Organization (WTO) in 2007, Vietnam has actively engaged in crafting and signing next-generation FTAs. These agreements significantly enhance market access while fostering institutional reform and boosting national competitiveness.
The Role of New-Generation FTAs
Economists emphasize the pivotal role of new-generation FTAs in enhancing Vietnam’s trading potential. Agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP) have bolstered export capabilities. These frameworks not only expand markets for Vietnamese goods but also fortify the nation’s position within global supply chains.
Textile and Garment Industry: A Success Story
One sector that stands out for effectively capitalizing on FTAs is the textile and garment industry. According to Vu Duc Giang, the chairman of the Vietnam Textile and Apparel Association, FTAs have propelled the sector to diversify its export markets, markedly reducing reliance on a few key destinations. By 2025, exports in this sector were estimated to reach $46 billion, representing a 5.6% increase from the previous year and yielding a trade surplus of approximately $21 billion—the highest ever recorded.
Trade Performance and Global Standing
In 2025, Vietnam witnessed a staggering overall trade growth of 16.9%, equivalent to an increase of $133 billion year-on-year. This remarkable performance accentuates the country’s rising stature on the global trade stage, highlighting its enhanced capacity to integrate into international production and supply chains.
At the Global Sourcing Outlook 2025 seminar, Global Sources identified Vietnam as an emerging hub within global supply chains. The country’s manufacturing capabilities, skilled labor force, stable investment climate, and comprehensive FTA network linking major markets such as the U.S., Europe, Japan, and the Middle East contribute to this reputation.
Navigating Challenges Ahead
While the trajectory of export growth appears promising, experts warn that traditional growth drivers—namely low-cost labor, natural resources, and foreign direct investment—are approaching their limits. Therefore, Vietnam must identify new avenues for growth to retain competitiveness and enhance the quality of its economic development.
Despite maintaining an approximate growth rate of 8%, there remains a structural challenge: low domestic value added in exports. This has prompted economists like Tran Du Lich to call for a shift in focus—from merely boosting export volumes to enriching indigenisation and value creation within the economy.
The Need for Value Creation
Presently, domestic value added accounts for around 36.6% of Vietnam’s exports. Experts advocate raising this ratio to 40% or even 50% to fortify the next phase of development and bolster domestic enterprises.
The domestic cashew industry exemplifies both opportunities and constraints in this arena. With exports projected to reach $5 billion in 2025, the sector faces challenges due to its heavy reliance on imports for raw materials. In contrast, the textile and garment industry has made significant advancements, boasting an indigenisation rate of 52% in 2025 driven by investments in local fabric production, dyeing, and renewable energy initiatives.
Future Strategies for Sustainability
As the textile and garment sector eyes a strategy focused on green and digital transformation, objectives are set to lift indigenisation to 60% and expand export revenues to between $64.5 and $65 billion by 2030. This approach underscores the commitment to ensuring that international trade remains a resilient and sustainable driver of Vietnam’s economic growth.
By strategically navigating both opportunities and challenges, Vietnam’s diversified trade agenda illustrates its potential for long-term success in the global market.