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| Tim Evans, CEO, HSBC Vietnam |
Vietnam stands out as one of the most dynamic economies in Southeast Asia, showcasing a remarkable GDP growth of 8.02% in 2025. This growth has been primarily driven by a thriving manufacturing sector, robust exports, a flourishing services landscape, and attractive foreign direct investment (FDI). Over the past two decades, Vietnam has successfully integrated itself into global supply chains, transitioning beyond textiles to become a key player in high-value industries such as semiconductors, electronics, and automotive manufacturing. Notably, by late 2025, Vietnam accounted for approximately 75% of game console exports to the United States, reflecting its increasing sophistication in high-tech assembly and component production.
The surge in manufacturing and exports has been significantly fueled by strong FDI inflows. Vietnam has consistently attracted foreign investments, making it one of the top destinations for FDI in ASEAN, often surpassing its GDP in inflow volumes. This growth can be attributed to the country’s proactive engagement in numerous trade agreements and its participation in major international organizations, which have deepened its connectivity to global value chains and fostered a more appealing investment environment.
Vietnam’s digital economy presents vast potential, bolstered by strong governmental support, and high rates of internet and smartphone penetration. In fact, Vietnam has emerged as one of the fastest-growing digital economies in the region, reaching a valuation of $39 billion in 2025, with impressive double-digit growth across various sectors. Projections indicate that this market could balloon to anywhere between $85 billion and $190 billion by 2030, guiding Vietnam towards overcoming the middle-income trap through technology and digital transformation.
This digital shift aims not only to enhance productivity but also to spur creativity across sectors. The government has ambitious targets for the digital economy, aiming for it to constitute 30% of the national GDP by 2030. The rapid growth of e-commerce and video commerce exemplifies the backbone of this digital transformation, creating ample opportunities for innovative enterprises.
<pA noteworthy highlight is Vietnam's leading position in Southeast Asia regarding AI engagement and user trust; a remarkable 81% of users interact with AI tools daily. This opens up exciting avenues for localized AI applications, Vietnamese language models, and AI-powered customer service solutions. In parallel, the government’s aggressive promotion of a cashless society is propelling the digital financial services sector, with expectations for gross transaction values in digital payments to soar between $300 billion and $400 billion by 2030.
As Vietnam’s consumer market reaches a critical inflection point, projections indicate that it could become the 10th largest consumer market globally by 2030, surpassing the likes of the United Kingdom, Germany, and Turkey. With an expanding middle class that grows approximately 17% annually, the retail market is set to surpass $270 billion. This burgeoning market is expected to see a significant uptick in consumer spending, driven by rising disposable incomes and shifting preferences towards premium goods, modern healthcare, private education, and sustainable energy solutions.
The 2022 confirmation by FTSE Russell of Vietnam’s reclassification from a frontier market to a secondary emerging market is poised to have profound implications. This change, effective from September 2023, is likely to reshape investor confidence and behavior, thus driving Vietnam’s long-term economic evolution and minimizing reliance on any singular trading partner. According to HSBC Global Investment Research, this status could attract foreign inflows ranging from $3.4 billion to $10.4 billion from both active and passive funds, further embedding Vietnam in global investment narratives.
Vietnam is decisively embarking on a transformational era characterized by audacious ambition, extensive institutional reforms, and substantial public investment. The country harbors a bold vision to achieve high-income status by 2045, underpinned by a groundbreaking public investment plan prioritizing over 200 major infrastructure projects, including expressways, airports, seaports, and railways. With an investment strategy exceeding $130 billion, Vietnam is actively laying the foundation for sustainable growth.
Additionally, institutional reforms such as the establishment of an international financial center aim to streamline business operations, while plans to train 100,000 new engineers in high-tech sectors reflect Vietnam’s commitment to equipping its workforce for the future. This cohesive strategy combining infrastructure enhancement and governance transformation signals that Vietnam is on a steadfast path to reinvent itself into a premier destination for living and conducting business within Asia.