Current landscape

Energy demand in the Vietnamese industry sector is surging, projected to rise 12–13% in 2025. Renewable energy already makes up 27% of installed capacity (2023), led by solar and wind, though grid limitations pose challenges⁸.

Renewable energy & green infrastructure: A new direction promising Vietnam’s future development

Source: hdll.vn

Development outlook

The Vietnamese government is investing in the modernization and expansion of the national power grid to meet the growing demand and effectively integrate renewable energy sources.

– Country’s target of 30.4 GW of solar and 6 GW of offshore wind by 2030⁹.

– Renewable energy demand is rising due to rapid urbanization and industrial growth.

Government policies

– Decree 80/2024/NĐ-CP enables Direct Power Purchase Agreements (DPPA), supporting energy diversification, reducing fossil fuel dependence, and strengthening energy security. It reflects Vietnam’s push to ease power sector monopolies

– Feed-in-Tariff (FIT) revisions,  especially by promoting subsidies for renewable energy sectors, to strengthen long-term investor confidence in wind, solar, and biomass projects, which remain largely untapped in Vietnam

Key investment cases

– At the end of 2021, the Adani Group (India) invested in two renewable energy projects in Vietnam, including a wind power project operated by Adani Phuoc Minh Wind Power Co., Ltd. with a capacity of 27.3 MW in Phuoc Minh commune, Thuan Nam district, Ninh Thuan province; and a 50 MW solar power project also located in Ninh Thuan

– PNE AG (Germany) proposed a $4.6 billion offshore wind power project in Vietnam back in 2019. After six years of development, the project has recently shown some positive progress

– On March 5, 2025, Japanese Ambassador to Vietnam Ito Naoki affirmed that the Japan Bank for International Cooperation (JBIC) and Japanese enterprises will jointly invest in 14 projects in Vietnam, including wind power plants, with total capital reaching up to USD 20 billion

Current landscape

Vietnam’s healthcare spending rose from USD 16.1 billion (2017) to USD 22 billion (2022), equal to about 6.5% of GDP¹⁰. Besides, statistics from the Ministry of Health show that, over the past decade, Vietnam’s per capita healthcare spending has grown by an average of 11% annually. The average number of hospital visits per person per year increased from 1.89 visits in 2010 to 2.95 visits in 2020. However, this figure remains significantly lower than in other countries in the region, such as Thailand (3.5 visits/year) and China (4.9 visits/year). Therefore, there remains substantial room for growth in healthcare services in the coming years.

Source: Statista

Development outlook

– Medical device market set to reach $2.1 billion by 2026¹¹.

– In 2020, the Ministry of Health launched 1,000 Telehealth sites connected to over 30 major hospitals, supporting consultations and treatment of complex cases

Government policies

The 2024 Law on Medical Examination and Treatment simplifies FDI procedures:

– No requirement for foreign investors to partner with state hospitals.

– 100% foreign-owned clinics and hospitals are allowed.

– Tax cuts, import duty waivers, and faster licensing timelines.

Key investment cases

– Thomson Medical acquired FV Hospital for $381 million.

– Fujifilm Vietnam launched an AI-assisted diagnostic system in partnership with public hospitals.

– Siemens Healthier, GE Healthcare, and Medtronic continue expanding footprints.

Current landscape

Vietnam’s semiconductor industry has become a focal point of the Vietnam industry sector, serving as a vital hub for assembly, testing, and packaging for multinational corporations such as Intel, Samsung, and Foxconn. This positioning underscores Vietnam’s growing importance in the global downstream semiconductor supply chain. According to recent Vietnam industry reports,+ the market is experiencing substantial growth. Industry revenue is projected to reach $21 billion in 2025, an 18% increase from 2024¹⁴. Integrated circuits represent more than 80% of this market, fueled by their extensive application in consumer electronics, automotive, and healthcare industries.

Development outlook

Statista projects Vietnam’s semiconductor revenue will grow at a CAGR of ~10% from 2025 to 2029, reaching about $31 billion by 2029, with integrated circuits continuing to account for the bulk of this value. Meanwhile, investments are expected to shift Vietnam up the value chain through significant projects:

– Hana Micron (Korea) is investing $930 million in semiconductor manufacturing in Bac Giang by 2026.

– Signetics (Korea) is building a new flip-chip and IC packaging factory ($100 million) set for 2025.

– High-level talks between Vietnam and Japan are fostering cooperation in semiconductors, with a focus on workforce training and Japanese investment.

The Vietnam–Japan Semiconductor Partnership Program held in February outlined multiple areas for technological collaboration

Source: Ministry of Planning and Investment (former)

The next decade could see Vietnam not only expanding production capacity but also developing design centers, wafer fabs, and a skilled talent pool, enabling the Vietnam industry sector to capture more domestic value.

Government incentives

Decision 1018/QĐ-TTg (2024) sets the official strategy for semiconductor development, covering human capital, infrastructure, and investment conditions. One landmark policy is Decree 182/2024/NĐ-CP, which offers generous funding support for high-tech and semiconductor projects. Under this program, the government offers to co-fund up to:

– 50% of human resource development costs (e.g. training engineers)

– 30% of R&D expenditures

– 10% of investment in fixed assets

– and 3% of production costs for eligible semiconductor enterprises

Additionally, the state can support up to 25% of spending on social infrastructure (e.g. specialized facilities) for these projects.

Key investment case

Major global players like Amkor Technology and Hana Micron are significantly expanding their operations in Vietnam. Amkor is investing $1.6 billion in a new state-of-the-art advanced packaging plant, while Hana Micron has announced plans to invest approximately $930 million by 2026 to significantly enhance its chip packaging and testing facilities within the country.

Source: B&Company’s synthesis

Current landscape

Vietnam’s automotive market is undergoing a profound transition within the broader Vietnam industry sector. Conventional combustion vehicles remain dominant, yet the adoption of electric vehicles (EVs) and hybrids is accelerating sharply. In 2023, EV sales hit 15,700 units (6% of total auto sales) ¹⁷, a remarkable shift from near-zero levels just a few years earlier. Driving this change, VinFast pivoted entirely to EVs, while global brands like Kia, Hyundai, Audi, and Lexus also introduced new electric models.

Hybrid vehicles are also gaining ground. In 2024, sales surged by over 200% to about 10,000 units, with Japanese automakers leading the way. Toyota, with nearly 49% of the hybrid market, dominates thanks to consumer demand for fuel efficiency and reliability.

Development outlook

The outlook is highly dynamic. Vietnam has pledged net-zero carbon emissions by 2050, reinforcing aggressive electrification policies. Industry forecasts expect the EV market to nearly double from $3 billion in 2025 to $7 billion by 2030, with a CAGR of ~18%¹⁸. Foreign automakers are scaling their presence: BYD (China) established 13 dealerships in 2024 and plans 100 by 2026. This opens broad opportunities across the Vietnam industry sector, not only in vehicle production but also in related fields like battery manufacturing, recycling, charging networks, and smart grid technologies.

Government incentives

The government offers a robust package of incentives to promote EV production and adoption:

– Special Consumption Tax (SCT): A reduced rate of 1–3% is applied to EVs until February 2027.

– Registration Fees: A full waiver is in effect for EVs until February 2025, followed by a 50% discount for the subsequent two years.

– Import Duty Exemptions: Machinery, equipment, and components for EV manufacturing are exempt from import duties.

– Green Transport Strategy: This national strategy provides a formal roadmap for achieving 100% vehicle electrification by 2050. (Note: Hybrid vehicles do not currently benefit from the same dedicated tax incentives as battery electric vehicles.)

Key investment case

VinFast’s international expansion illustrates the sector’s global ambition, including a $500 million EV plant in India. Foreign players are also showing strong confidence: BYD and Mitsubishi are exploring local production, while component suppliers like Bosch and Samsung SDI target the EV supply chain.

Source: B&Company’s synthesis

Current landscape

Logistics is a critical pillar of the Vietnam industry sector, underpinning the country’s export-driven economy. The sector counts over 34,000 enterprises providing transportation, warehousing, freight forwarding, and related services. It has grown at 14–16% annually, with revenues estimated at $40–42 billion per year, or about 4.5% of GDP²¹. Road transport remains dominant, supported by growing sea and air freight. Value-added services—cold storage, fulfillment, and express delivery—are increasingly important, driven by booming e-commerce and modern retail.

Development outlook

As Vietnam strengthens its position as a regional manufacturing hub, logistics demand will rise sharply. The industry is projected to sustain double-digit growth and could reach $80–100 billion within 5–7 years. FDI is flowing in, especially from Japan, South Korea, and Singapore. Key trends shaping the sector include:

– Modern warehouses: Large-scale, automated facilities supporting e-commerce and industrial clients.

– Cold chain logistics: Expanded refrigerated transport and storage for seafood, fruit, pharmaceuticals, and vaccines.

– Smart logistics solutions: Adoption of automation, AI, and IoT in warehouses and transport networks.

Government incentives

Vietnam’s Logistics Strategy 2025–2035 (Vision 2050) outlines a clear plan for sector modernization. Key government initiatives include:

– Long-term vision: To develop Vietnam into a regional logistics hub, including the development of free trade zones.

– Foreign participation: Encouragement of joint ventures to attract FDI, facilitate technology transfer, and enhance competitiveness.

– Infrastructure investment: Public spending on expressways, ports, and airports; PPPs encouraged: new expressways (e.g. the North–South Expressway), deepening major seaports (Lach Huyen, Cai Mep-Thi Vai), and new airports (Long Thanh International).

– Workforce development: Logistics training programs with Japan and Singapore partnerships.

– Regulatory improvements: National Single Window for customs, digital port systems to cut bureaucracy.

The key project to upgrade the Cái Mép–Thị Vải international port to the deepest channel in Vietnam was completed in 2024

Source: Vietnam Pictorial

Key investment case

Prominent international logistics companies, including Sumitomo, Lineage, DHL, and JD Property, are actively establishing modern warehousing and distribution centers in Vietnam. These investments reflect the growing demand for efficient, high-quality logistics solutions in the region.

Source: B&Company’s synthesis