10 secret strategies that make Vietnam stand out from its neighbors.

In the past few decades, there have been issues of economic statistics, policy, politics, population structure and openness to the outside world, all of which have made Vietnam one of the most visible countries in Southeast Asia.

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Below is a series of stories about why Vietnam has come this far and what businessmen/investors/content makers like us should learn.

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Overview of the growth of Vietnam

In recent years, Vietnam has been considered one of the fastest growing economies in the region, with a growth rate of 7.09% in 2024, despite the global economy and the extreme nature of Taiwan, a figure that is higher than the average of many Asian countries and reflects that Vietnam's economic base is sufficiently strong.

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Over the long term, Vietnam has a relatively steady GDP growth record after opening up and reforming its economy, resulting in a steady increase in per capita income and becoming a major destination for foreign investment.

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1. reforming the economy and opening up countries

Vietnam's major turning point was the economic reform from a social-centric integrated system to a more open market economy, while maintaining a one-party political framework but relaxing the role of the private sector and foreigners.

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Vietnam is also moving forward with the negotiation and signing of free trade agreements with several regions, such as the CPTPP and EVFTA, which help open the export gate to major global markets, reduce taxes and increase Vietnam's appeal to investors

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2. GDP growth and economic structure

As we dig into the figures for 2024, Vietnam's economy expanded by 7.09% - the total economic value is about 476 billion US dollars - with the main driving force being export, manufacturing and domestic consumption that have strengthened. In addition, final consumption and investment in long-term assets have grown by more than 67% - reflecting that both the public and private sectors and households continue to spend and invest continuously.

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International services and trade have become an important part of Vietnam's modern economic structure, with the service sector accounting for more than 40% of GDP, while the industrial and construction sectors also play a key role in employment and exports.

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3. the expanding working-class and middle-class population.

One of the key assets of Vietnam is the dense population structure, with more than half the population under the age of 35, which provides the country with a large number of working age workers, modern manufacturing and service businesses for investors.

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At the same time, Vietnam's middle class is expanding rapidly, with it being predicted that by 2030 the middle class will comprise more than 50% of the population, contributing to an increase in domestic purchasing, the emergence of new consumer markets in consumer goods, consumer goods, digital content and financial services

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4.Foreign Direct Investment (FDI)

FDI is considered the heart of Vietnam's rapid growth, with many large global companies moving their production base or expanding their plants to Vietnam, such as the electronics and clothing group, making the country a key manufacturing base in the global supply chain.

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The trend of China plus one, in which many companies want to reduce their reliance on China alone, allows Vietnam to take full advantage of having a factory near China, cheaper labor and infrastructure to support manufacturing and logistics industries.

5. infrastructure and industrial zone

Vietnam has invested heavily in infrastructure such as roads, ports, airports and industrial hubs, making transportation and domestic connectivity much easier, reducing logistics costs for businesses and increasing attractiveness to foreign producers.

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For the service sector, the development of tourism infrastructure such as new airports, hotels and tourist attractions has allowed Vietnam to attract more tourists and become another major revenue pillar of the country

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6.Political stability and a stable image.

Although Vietnam is the only political party in the country, it is economically considered to provide a level-one stability of policy; many investors consider that the absence of frequent changes in government helps to keep the economy from drifting too far.

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However, the integration of political power centers is also cautious, as transparency in the making of laws and policies may not be as much as a broadly open system, requiring businesses to constantly update new regulations and being flexible in adapting.

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7. reforming the legal and business environment

In recent years, Vietnam has been steadily reforming business law, the government has a plan and a plan to reform the investment, land, construction and environmental laws to reduce repetitive steps and create a more transparent environment for the private sector.

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In the area of state taxation and revenue collection, there have been amendments to the law to include small businesses and retailers, such as increasing the tax-exempt income ceiling for individual entrepreneurs to encourage more legally-integrated access to the economy.

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8. Strategy from factory to technology

Although the first image many see is Vietnam as a global factory, strategically the government wants to move the country from a low-cost manufacturing base to a technology and innovation hub, in the IT sector, start-ups and digital services, investments in digital infrastructure, technology personnel development, as well as attracting foreign IT companies to set up domestic development and R&D centers.

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Vietnam's stock market reflects this picture as the financial sector, technology and consumer services are becoming more and more important and are being discussed as a market with high growth potential over the medium to long term.

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9. international trade and linking global supply chains.

Vietnam benefits from its membership in several free trade agreements, as well as from cooperation in Asia, to connect itself to the global supply chain in electronic goods, toys, shoes and agricultural products.The value of Vietnam's exports and imports in 2024 is around 780 billion dollars, indicating that trade is a major driver of the economy.

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With ports and logistics networks connecting China and other Asian countries, Vietnam has become a key player in the global supply chain. Foreign companies have been able to better distribute the risks of major international trade tensions by establishing a production base in Vietnam.

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10.The challenges and the advantages to be aware of.

Although the overall picture is clear, Vietnam still has risks and challenges to address, both problems in the banking and real estate sectors that are still vulnerable and the growth of loans that are at times below their potential.

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In the long run, Vietnam faces the major challenge of moving from growth driven by cheap labor and investment to growth based on productivity and innovation, if not, it could be trapped in a mid-income trap and lose competitiveness as costs rise.

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For entrepreneurs in the region, Vietnam is an example of a country that uses a set of tools, a multi-faceted growth, from opening up the country, attracting FDI, building infrastructure, to reforming the law to involve more individuals, businesses that want to enter the Vietnamese market should focus on understanding the rapidly changing legal system and networking with state and local authorities around the country.

Arranged by the Directorate of the Ministry of Culture, Shri Ghasra.

Sources of reference

Viet Nam Government Portal reported GDP Vietnam 2024 7.09% and economic structure

https://en.baochinhphu.vn/viet-nams-gdp-growth-accelerates-to-709-in-2024-111250106112720487.htm

Reuters's Vietnamese economic report for 2024 estimates the economic value of the country at $476.3 billion, with 7.09% led by exports and FDI

https://www.reuters.com/markets/asia/vietnam-2024-gdp-growth-quickens-709-2025-01-06/

Vietnam Law & Legal Forum Vietnam's total trade value in 2024 is estimated at $786.29 billion, reflecting the role of the global supply chain

https://vietnamlawmagazine.vn/2024-trade-value-sets-record-of-nearly-usd-800-billion-73346.html