Viet Nam – a bright spot in global economy in 2025
Thanks to sustainable foundation and appropriate growth strategies, Viet Nam remains a bright spot in the Southeast Asian region and global economy in the eyes of international banks and financial institutions.
Positive economic outlook
Several international financial organizations including the World Bank (WB) and Asian Development Bank (ADB) revised up Viet Nam's growth projections in 2024 and 2025.
The ADB raised its growth forecasts for Viet Nam to 6.4 percent and 6.6 percent in 2024 and 2025, respectively, from its previous predictions of 6 percent and 6.2 percent thanks to strong trade performance, a resurgence in export-led manufacturing, and ongoing fiscal stimulus measures.
Similarly, WB also upgraded its GDP growth forecasts for Viet Nam to 6.5 percent in 2024 and 6.5 percent in 2025.
Andrea Coppola, World Bank's lead economist and program leader for Viet Nam, Cambodia, and Laos attributed Viet Nam's business environment and the Vietnamese government's efforts as two of the three key factors that help the country attract foreign direct investment.
Viet Nam faced challenges in 2024 related to international geopolitical tensions, climate change, and natural disasters. "Viet Nam's economy in 2024 has achieved very positive results due to increased demand from major export partners such as the EU and the U.S., leading to a robust recovery in exports and industrial production, alongside a gradual revival in domestic consumption. We anticipate this positive growth trend will continue into 2025," said Coppola.
Firstly, Viet Nam's business environment offers stability, a particularly critical factor for investors.
Secondly, the international community highly values the Vietnamese government's continuous efforts to enhance the business climate.
Thirdly, Viet Nam has capitalized on its strategic position as a "bridge" between major powers like China and the U.S, enabling it to attract significant foreign investment.
Bright spot in investment and technology attraction
The General Statistics Office (GSO) reported that Viet Nam absorbed US$21.68 billion of FDI in the first 11 months, representing a year-on-year increase of 7.1 percent. This is the third consecutive year Viet Nam attracted over US$20 billion of FDI.
According to Vietnam-briefing.com, an investment site of legal tax and operational advisory provider Dezan Shira & Associate, Viet Nam's partnership with US tech giant NVIDIA has reflected the Southeast Asia country's proactive technology development strategy as well as its significant economic potential.
Viet Nam has emerged as a prominent play in the region's AI landscape. According to Statista, a global data and business intelligence platform, the country's AI market is projected to reach US$753.4 million in 2024, with a compelling compound annual growth rate of 28.36 percent from 2024 to 2030. This growth rate closely mirrors the regional average of 28.53 percent, demonstrating Viet Nam's capacity to rapidly adapt to global technological transitions, propelled by foreign investment.
The UK-based Oxford Insights' research on AI readiness showed that Viet Nam ranked 39th out of 139 countries, moving up 19 places from the previous year. In Southeast Asia, Vietnam ranks among the top five nations, boasting over 5,000 engineers, 7,000 AI specialists, and some 500 AI-focused startups.
The establishment of two AI centers, alongside partnerships with key local players like VinBrain and FPT Corporation, demonstrates Vietnam's growing prominence in the global AI ecosystem. The convergence of Viet Nam's strategic advantages—including its young, skilled workforce, thriving startup ecosystem, location, and supportive government policies—creates an ideal environment for continued technological advancement and foreign investment.
Bright spot in investment and technology attraction
The General Statistics Office (GSO) reported that Viet Nam absorbed US$21.68 billion of FDI in the first 11 months, representing a year-on-year increase of 7.1 percent. This is the third consecutive year Viet Nam attracted over US$20 billion of FDI.
According to Vietnam-briefing.com, an investment site of legal tax and operational advisory provider Dezan Shira & Associate, Viet Nam's partnership with US tech giant NVIDIA has reflected the Southeast Asia country's proactive technology development strategy as well as its significant economic potential.
Viet Nam has emerged as a prominent play in the region's AI landscape. According to Statista, a global data and business intelligence platform, the country's AI market is projected to reach US$753.4 million in 2024, with a compelling compound annual growth rate of 28.36 percent from 2024 to 2030. This growth rate closely mirrors the regional average of 28.53 percent, demonstrating Viet Nam's capacity to rapidly adapt to global technological transitions, propelled by foreign investment.
The UK-based Oxford Insights' research on AI readiness showed that Viet Nam ranked 39th out of 139 countries, moving up 19 places from the previous year. In Southeast Asia, Vietnam ranks among the top five nations, boasting over 5,000 engineers, 7,000 AI specialists, and some 500 AI-focused startups.
The establishment of two AI centers, alongside partnerships with key local players like VinBrain and FPT Corporation, demonstrates Vietnam's growing prominence in the global AI ecosystem. The convergence of Viet Nam's strategic advantages—including its young, skilled workforce, thriving startup ecosystem, location, and supportive government policies—creates an ideal environment for continued technological advancement and foreign investment. – Source: VGP –