2025: A Promising Year for Doing Business in Vietnam

As the new year begins, Vietnam continues to shine as a hub of opportunities for foreign businesses. With its strategic location, dynamic workforce, and growing industries, the country is poised to build on its successes in 2024 and offer even more potential for growth in 2025.

Let’s take a closer look at the trends shaping Vietnam’s economic landscape and explore why now is the perfect time for foreigners to consider doing business here.

Reflecting on 2024: A Year of Growth and Resilience

2024 was a remarkable year for Vietnam. The country made significant strides in key industries, including furniture, textiles, footwear, and electronics manufacturing. Despite global economic uncertainties, Vietnam maintained steady growth, driven by:

Increased foreign investments: Foreign direct investment (FDI) into Vietnam has reached a record-high level 2024, grew by 9.4% year-on-year, reaching $25.35 billion from January to December 2024. Foreign investors were active in 18 out of 21 sectors, with the manufacturing-processing sector was the biggest recipient in terms of newly-registered capital with $13.44 billion, or 68.1% of the total.
Export growth: Vietnam remained a top exporter of products like furniture, apparel, and agricultural goods. For the entire year of 2024, Vietnam’s export turnover of goods reached $405.53 billion, marking a significant increase of 14.3% compared to the previous year. The United States was Vietnam’s largest export market with 19 percent of the total exports, with an estimated turnover of USD 119.6 billion.
Vietnam’s exports have grown significantly from 2015 to 2024
Infrastructure development: Vietnam launched several large-scale projects to improve infrastructure, such as the North-South Expressway and port upgrades. On November 13, 2024, during the 8th session of the National Assembly, Minister of Transport Nguyen Van Thang formally presented the project for investment approval of a high-speed railway between Hanoi and Ho Chi Minh City by 2030, with the project expected to be completed by 2035.

To better understand how Vietnam’s remarkable growth in 2024 has shaped the opportunities for doing business here, this insightful video offers a deeper dive into the key factors that have contributed to the country’s resilience and future prospects.

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These achievements have laid the groundwork for even greater possibilities in 2025.

What’s Ahead in 2025: Key Trends and Predictions

As we step into 2025, here are some notable trends and opportunities shaping the business environment in Vietnam:

1. Booming Industries

Furniture: Vietnam’s furniture industry has earned a strong reputation for producing high-quality products at competitive prices. Advanced manufacturing techniques, such as CNC cutting and automated finishing lines, are enabling factories to deliver products that meet global standards. In 2014, Vietnam ranked 13th in global furniture production, but by 2024, it has risen to 6th place in terms of production value, according to a report by the Italy-based economic think tank, Center for Industrial Studies. In the Asia-Pacific region, Vietnam is the second-largest exporter of furniture, only behind China. For foreign businesses looking to source furniture, Vietnam offers both quality and value.

Textiles and Footwear: These industries continue to thrive, with Vietnam remaining one of the largest exporters globally. The country is well-known for its manufacturing and processing factories that supply major international brands such as Adidas, ASICS, and Nike. Vietnam’s ability to adapt to changing trends, as well as its commitment to offering sustainable production solutions, has attracted numerous international brands seeking eco-friendly sourcing options.

Where are Asics shoes Made? Discovering the leading country for footwear manufacturing

Technology and Electronics: Major companies like Samsung and Intel continue to expand their operations in Vietnam, driven by the country’s favorable manufacturing environment, competitive labor costs, and skilled workforce. Notably, NVIDIA, the world leader in graphics processing units (GPUs), has made significant investments in Vietnam, establishing a major research and development center in 2024. This expansion underscores Vietnam’s growing importance in the global tech industry, as the country increasingly becomes a hub for innovation and electronics manufacturing.

2. Economic Outlook for 2025

Vietnam’s GDP is expected to grow steadily in 2025, fueled by strong domestic demand and export growth. In a New Year’s Day article, Prime Minister Phạm Minh Chính emphasized that the country must aim for an economic growth rate of at least 8% this year—or even higher—to pave the way for double-digit growth starting in 2026. Policies promoting foreign investments, such as tax incentives and streamlined business regulations, make it easier for newcomers to enter the market. Additionally, free trade agreements like the CPTPP and RCEP will continue to enhance Vietnam’s trade relationships globally.

3. Impact of Global Events

The recent U.S. elections have stirred discussions about potential changes in global trade policies. For Vietnam, this presents both challenges and opportunities. With Asia’s growing prominence in global trade, Vietnam is well-positioned to leverage its strong manufacturing base and strategic partnerships.

4. Sustainability as a Priority

Sustainability is no longer optional. Vietnam is embracing green initiatives across industries. From eco-friendly packaging in manufacturing to renewable energy projects, businesses aligning with this trend can gain a competitive edge.

Why Choose Vietnam for Your Business?

For foreign entrepreneurs, Vietnam offers several compelling reasons to invest:

Cost-effectiveness: Labor costs in Vietnam remain lower than in many neighboring countries, making it an attractive option for manufacturing and sourcing.
Proximity to major markets: Vietnam’s location in Southeast Asia makes it a gateway to other growing markets in the region, including China and ASEAN countries.
Government support: The Vietnamese government actively promotes foreign investments through incentives and reduces barriers to entry.
Cultural openness: Vietnamese people are known for their hospitality and openness, making it easier for foreign businesspeople to integrate and collaborate.

Why Vietnam is a TOP Business Destination for Foreign Entrepreneurs

Tips for Success in Vietnam in 2025

For those considering starting or expanding a business in Vietnam, here are some practical tips:

Understand the culture: Building relationships is key in Vietnam. Take the time to learn about local customs and practices.
Invest in due diligence: Ensure your suppliers or partners meet your quality and ethical standards. Factory visits are highly recommended.
Stay updated on regulations: Vietnam’s legal landscape can change, so working with local experts or consultants is essential.
Plan for holidays: The Lunar New Year (Tết) is a major holiday in Vietnam. Factor this into your business timeline to avoid disruptions.

Start 2025 Strong: Explore Vietnam’s Opportunities

The opportunities in Vietnam for foreign businesses are immense, and 2025 is shaping up to be a transformative year. Whether you’re looking to source high-quality products, invest in growing industries, or establish a local presence, Vietnam offers a wealth of potential.

>> To kick-start your journey, understanding the ins and outs of doing business in Vietnam, get a FREE consulting call on how to establish your venture in Vietnam with Movetoasia expert guidance.

With Vietnam’s thriving industries and supportive business environment, there’s no better time to explore the opportunities that await. Let 2025 be the year of growth, innovation, and success for your business journey in Vietnam.

Source: Vietnam Insider