Vietnam has rapidly emerged as a top destination for foreign investors, thanks to its stable political environment, strong economic growth, strategic trade agreements, and competitive workforce. Major cities like Ho Chi Minh City and Hanoi are transforming into thriving economic hubs, offering distinct advantages for businesses expanding their operations across Southeast Asia.

Vietnam economic situation in recent years

In 2024, Vietnam’s GDP is estimated to grow by approximately 7% compared to 2023, reaching 476 billion USD. Over a decade from 2014 to 2024, Vietnam’s economy has experienced substantial economic expansion, achieving a CAGR of 9%. The services sector continues to dominate, accounting for 42% of the GDP, followed by the industrial and agricultural sectors at around 38% and 12%, respectively. The economic structure is gradually shifting, with the country increasingly investing in the growth of the services and industrial sectors, while the share of agriculture has significantly declined.

Vietnam GDP from 2014 to 2024 by sector

数据来源：越南统计总局

In addition, Vietnam is gradually shifting its focus toward investing in and expanding several key industries, such as semiconductors, energy, and construction. These sectors are being supported by large-scale projects, with investments reaching into the billions of dollars:

– North–South High-Speed Railway: Connect Hanoi and Ho Chi Minh City with a high-speed rail line designed for speeds up to 350 km/h. The estimated cost is approximately 67 billion USD, with construction expected to commence by 2030 and completion targeted for 2035[1].

– Nuclear Power Plants: Vietnam plans to construct its first nuclear power plants by 2031 to meet growing energy demands and reduce greenhouse gas emissions. The government has signed agreements with Russia’s state-owned nuclear energy company, Rosatom, to enhance cooperation in nuclear energy[2].

– Semiconductor Manufacturing: Vietnam is investing in its semiconductor industry, with projects like Viettel’s 100 million USD chip factory set to launch in 2025[3]. The government has introduced policies to support this sector, including a funding package of up to 400 million USD, covering 30% of total project investment costs for semiconductor manufacturing plants operational by December 31, 2030[4].

Labor force market in Vietnam

越南仍处于“黄金人口结构”阶段[5], with the labor force aged 15 and older reaching 53 million in 2024, maintaining a stable level of 67% of the total population over the past five years since 2019. The unemployment rate remained low at approximately 2% throughout the year, with workforce allocation is mainly from rural and suburban areas, accounting for 61%, while urban workers comprise the remaining 39%[6].

截至 2023 年底，农业、林业和渔业部门继续在越南的就业结构中占据主导地位，占总就业人数的 27%。其次是加工制造业，占 23%，零售和汽车维修占 15%，建筑业占 9%[7].

Vietnam’s number of employed people by economic activity from 2019 to 2023

数据来源：越南统计总局

Additionally, in 2024 the proportion of highly skilled workers in Vietnam remains relatively low, with only 28% of the workforce holding formal training or certification[8]. Conversely 62% of the workforce have not undergone any formal training or obtained recognized credentials. This reflects a modest improvement – a subtle 1% increase compared to 2023 and a 5% growth since 2019[9]. Notably, the workforce saw a significant improvement in sectors like semiconductors and technology, where the supply of qualified professionals is expanding[10]. The increase in skilled workers has contributed to the average monthly wage in Vietnam rising to nearly 315 USD—an 8% increase from 2023[11]这表明，尽管工资具有竞争力，但仍能吸引那些寻求具有成本效益的劳动力解决方案的公司。

Situation of FDI investment in Vietnam

Over the past decade, from 2014 to 2024, Vietnam’s FDI has experienced notable expansion in both newly registered investment and project numbers, with a CAGR of approximately 6%. By the end of 2024, the total accumulated registered FDI is projected to reach nearly 503 billion USD, encompassing over 42,000 active projects. Newly registered FDI for 2024 is estimated at around 38 billion USD, representing a 4% decrease compared to 2023. However, this figure indicates a gradual recovery following the economic downturn in 2020[12].

In terms of capital allocation by sector, the manufacturing and processing industry remains the leader, with the total investing amount reaching nearly 26 billion USD, accounting for 67% of the total registered investment. The real estate sector follows with 6 billion USD, accounting for 17%. Next are sectors such as energy, wholesale & retail, each accounting for 4%[13].

Vietnam newly registered FDI in 2024 by investment countries, provinces and sectors

Unit: 100% = 38.2 billion USD

资料来源：计划投资部

Singapore remains the leading country in terms of investment value in Vietnam, with newly registered FDI reaching 10 billion USD, accounting for 27%. Korea and China follow in second and third place, with investment values of approximately 7 and 5 billion USD, respectively. Japan ranks fifth among the countries investing in Vietnam, with an investment value of around 4 billion USD. Bac Ninh, Hai Phong, and Ho Chi Minh City are the top three cities and provinces that receive the most investment, while the remaining provinces and cities also see an evenly distributed investment value.

Several notable FDI projects in Vietnam in recent years

来源：B&Company 编译

In addition, the Vietnamese government also offers various investment incentives, especially in sectors that have gained recent attention, such as semiconductors and energy.

Investment support policies in some sectors in Vietnam

来源：越南政府门户网站

Practical Advice for Foreign Investors

Despite its advantages for expansion and investing in emerging markets like Vietnam, investors should be aware of certain challenges. Vietnam is undergoing significant bureaucratic reforms to streamline its administrative processes, including reducing the number of ministries and agencies. While these changes aim to enhance efficiency, they may temporarily affect the pace of project approvals[15]. Additionally, while the government is transitioning to online platforms for business-related administrative procedures by the end of 2025, regional disparities in implementation may still pose challenges[16]\. Cultural nuances and language barriers remain pertinent; effective communication often requires understanding indirect expressions and non-verbal cues, which can vary across regions. Being attuned to these cultural dynamics and administrative transitions will be crucial for navigating the Vietnamese business environment effectively.

结论

Vietnam is a favorable destination for many investors expanding their businesses and investing in the region’s long-term growth. While the country’s economy is gradually growing, global trade tensions have somewhat impacted both the economy and the Vietnamese market. In addition to the investment advantages, there are still several challenges that investors need to be aware of. However, if these challenges can be navigated, Vietnam remains an ideal investment location for those seeking to expand their market in the Southeast Asian region.

[1] VietnamPlus (2024). North – South High-speed Rail Price Tag Estimated at 67.34 billion USD <使用权>

[2] Lao Dong News (2025). Russia Continue to Support Vietnam in Develop Nuclear Power <使用权>

[3] Nguoiquansat (2024). Vietnam Planning to Construct a Domestic Semiconductor Manufacturing Factory <使用权>

[4] Linkedin (2025). Vietnam’s Semiconductor Policy: Opportunities & Strategic Challenges <使用权>

[5] 黄金人口结构的特点是劳动年龄人口（15-64岁）与受赡养人口（15岁以下和64岁以上）的比例最高

[6] 计划投资部门户网站（2025）。2024年越南劳动就业状况使用权>

[7] 越南统计总局（2024 年）。2023 年按经济活动类型划分的就业人数使用权>

[8] A person aged 15 or older who is employed or unemployed, who has studied and graduated from a vocational or technical training program within the national education system and has been awarded one of the following degrees or certificates: elementary (vocational), intermediate, college, university (bachelor’s), master’s, doctoral, or doctor of science.

[9] General Statistics Office of Vietnam (2025). Vietnam’s Employment Report <使用权>

[10] Vietnam Briefing (2024). Vietnam Labor Market Report for H1 2024 <使用权>

[11] 亚洲来源（2024 年）。2024 年以后越南劳动力市场使用权>

[12] General Statistics Office of Vietnam (2024). Foreign Direct Investment Projects Licensed in Vietnam <使用权>

[13] Ministry of Planning and Investment (2025). Situation of Foreign Direct Investment in Vietnam in 2024 <使用权>

[14] 支持资金水平将根据每家公司的支出而有所不同，获得更高水平的资金需要满足更严格的条件

[15] VnExpress (2025). Vietnam to Merge 63 Localities into 6 Cities and 28 Provinces Under Major Restructuring Plan <使用权>

[16] Vietnam Law & Legal Forum (2025). All Business-related Administrative Procedures to be Done Online by the end of 2025 <使用权>