Vietnam’s economy has emerged as one of Southeast Asia’s fastest-growing and most dynamic markets, attracting significant global attention. With a population of over 100 million, a strategic location in the Asia-Pacific region, and a rapidly industrialising economy, Vietnam has become a manufacturing and export powerhouse.
Notably, the country has leveraged its integration into global trade networks, particularly through free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, to boost its export-driven economy. Key sectors such as textiles, electronics, and machinery play a central role in Vietnam’s growth story.
Beyond manufacturing, Vietnam’s economy is also supported by increasing domestic consumption, foreign direct investment, and a burgeoning services sector. A commitment to economic reforms, improving the business environment, and investing in infrastructure has created a favourable climate for investors.
Vietnam GDP break down 2023, by % of total
| VNDbns | US$bns | % of Total | |
| Manufacturing | 2,441,252 | 98.98 | 23.88% |
| Agriculture, Forestry and Fishery | 1,222,579 | 49.57 | 11.96% |
| Vehicles and Motorcycles, Sales And Repairs | 1,005,257 | 40.76 | 9.83% |
| Taxes Less Subsidies On Products | 856,835 | 34.74 | 8.38% |
| Construction | 640,717 | 25.98 | 6.27% |
| Transport and Storage | 502,564 | 20.38 | 4.92% |
| Finance, Banking, Insurance | 501,319 | 20.33 | 4.90% |
| Production and Supply Of Electricity, Gas, Hot Water, Steam and Air-Conditioning | 409,337 | 16.60 | 4.00% |
| Education and Training | 400,966 | 16.26 | 3.92% |
| Real Estate Business | 364,119 | 14.76 | 3.56% |
| Information and Communication | 354,381 | 14.37 | 3.47% |
| Other | 1,522,491 | 61.73 | 14.89% |
| Gross Domestic Product | 10,221,815 | 414.43 | 100.00% |
Source: Vietnam General Office of Statistics
Foreign Direct Investment
In 2023, Vietnam attracted a substantial amount of foreign direct investment (FDI), with a total realised capital of US$23.2 billion, according to the Ministry of Planning and Investment. This figure underscores the country’s strong appeal to international investors, particularly in key sectors such as manufacturing, real estate, and high-tech industries. The realised capital represents the funds that have been fully invested and implemented in various projects nationwide, showcasing Vietnam’s growing importance in global supply chains and as a manufacturing hub.
Additionally, the total registered capital amounted to US$36.6 billion, indicating a strong pipeline of future investments. Registered capital includes newly pledged investments, additional capital for ongoing projects, and capital contributions from foreign investors, which reflect their long-term confidence in Vietnam’s economic prospects. These figures highlight Vietnam’s strategic positioning as a top FDI destination, supported by its robust trade agreements, competitive labour market, and continued government reforms aimed at improving the business environment and infrastructure development.
See also: Vietnam Foreign Direct Investment Tracker
Vietnam’s key industries
Vietnam’s economy is in large part concentrated in a few key areas. This is, however, slowly changing as the economy expands and diversifies. Key industries in Vietnam as of 2024 include:
Vietnam’s retail industry
Vietnam’s retail industry is much bigger now than it was just a few years ago. From supermarkets to corner stores and everything in between shopping in Vietnam has never before come with so many options. Furthermore, foreign retailers are opening new retail outlets in Vietnam almost every other day.
As of 2024, Vietnam’s retail industry continues to show promise, driven by a rising middle class, increased consumer spending, and a young population. The sector has increasingly embraced digital transformation, with e-commerce rapidly expanding alongside traditional retail channels. Online shopping is gaining popularity, particularly among younger consumers, spurred by mobile technology and changing shopping behaviours.
See: Vietnam Retail Sales Tracker
Vietnam’s manufacturing industry
Vietnam’s manufacturing sector is in the middle of a boom period. In just over two decades the country has gone from relatively underdeveloped to a thriving hub of activity on the back of a manufacturing sector that has brought millions of jobs to the country.
In fact, 86 percent of Vietnam’s export merchandise came from the manufacturing sector in 2022, compared to just 49 percent in 2002. These exports have increased in value too. In 2002, Vietnam exports of goods and services to the tune of US$19.19 billion. In 2022, that number had climbed to US$384.22 billion.
Indeed, the country and the sector have come a long way, but there is much more room to expand.
See also: Manufacturing in Vietnam 2024: Ultimate Guide
Vietnam’s food and beverage
Vietnam’s food and beverage–or F&B–industry has experienced remarkable growth in recent years, driven by a combination of factors including rapid urbanisation, rising disposable incomes, and a burgeoning middle class. The country’s rich culinary heritage, coupled with increasing consumer demand for diverse and convenient food options, has created a dynamic and promising market.
See also: Vietnam’s Food and Beverage Industry 2024
Vietnam’s finance industry
Vietnam’s financial sector has become a dynamic part of the nation’s economy, but despite its rapid development, it remains relatively small. In 2023, the sector accounted for just 4.9 percent of Vietnam’s total GDP.
That said, over the last decade, various segments, including banking, insurance, bonds, and stocks, have seen significant growth. The expansion has been driven by increased demand for financial services among a growing middle class, enhanced regulatory frameworks, and greater access to technology such as mobile banking and online investment platforms.
See also: Vietnam’s Financial Sector 2024: An Overview
Primary Industries
Vietnam’s agriculture sector plays a crucial role in the country’s economy, contributing significantly to GDP and employing a large portion of the workforce. It is a diverse sector, encompassing crops, livestock, forestry, and fisheries. The country is a leading global exporter of products such as rice, coffee, and seafood. In recent years, the sector has seen a shift towards higher-value crops and more sustainable farming practices, as the government aims to enhance both productivity and environmental sustainability.
See also: Vietnam’s Agriculture Industry: Overview 2024
Trade
In 2023, Vietnam’s total export value reached US$354.67 billion, reflecting the ongoing significance of exports in the country’s economy. Key sectors, including electronics, textiles, and machinery, played a substantial role in contributing to this figure. However, the export performance, though notable in scale, did not meet expectations in light of global economic conditions, highlighting some of the challenges the country faced in maintaining its competitiveness in international markets.
On the import side, Vietnam’s total imports amounted to US$326.37 billion in 2023. The import volume, driven largely by the need for foreign raw materials and components, reflects the dependence of Vietnam’s manufacturing sector on global supply chains. However, despite a trade surplus between exports and imports, the overall trade performance fell short of anticipated targets, pointing to underlying pressures within the economy.
See also: Vietnam Trade
What’s next?
The future of Vietnam’s economy is shaped by both opportunities and challenges as the country continues to integrate into the global market. Vietnam’s strong export-oriented manufacturing base, particularly in electronics, textiles, and agriculture, is expected to remain a key driver of growth. Additionally, ongoing infrastructure improvements and investments in digital transformation are likely to enhance productivity and efficiency.
However, Vietnam faces challenges such as global supply chain disruptions, environmental sustainability, and the need for continued regulatory improvements. Managing inflation, increasing domestic value-added production, and reducing dependence on external markets will also be critical. Overall, Vietnam’s economic future appears promising, but careful policy implementation and strategic investments will be essential to maintaining sustainable and balanced growth.
That said, Vietnam’s economy is dynamic and prone to change quickly. With this in mind, foreign firms doing business in Vietnam should make sure to keep up with the latest economic developments by subscribing to the-shiv.