Following robust economic performance in 2024 characterized by impressive GDP growth, strong foreign direct investment inflows, and a favorable trade balance, Vietnam is positioning itself strategically amid the ongoing global trade disruptions driven notably by recent U.S. tariff policies. As geopolitical tensions reshape international supply chains, Vietnam emerges as a resilient and attractive destination for investors seeking stability and opportunities in Southeast Asia.
Executive summary
● Rising bilateral trade with the U.S.: Vietnam’s large trade surplus has placed it under U.S. scrutiny, prompting tariff reductions on select American goods to mitigate potential trade friction.
● Stable growth trajectory: A predictable political environment and consistent economic policies drive steady GDP growth, with targets set as high as 8% for 2025.
● Pro-investment environment: Tax incentives, eased foreign ownership limits, and streamlined PPP laws attract significant FDI across various high-growth sectors.
● Major administrative overhaul: Significant governmental restructuring efforts are underway, including the consolidation of ministries and administrative units, and provincial rearrangements, aimed at improving governance efficiency and reducing bureaucratic barriers for investors.
Eric Le Dréau : eric.ledreau@indochinalegal.com
Nguyen Thi Mai Ly : ly.nguyen@indochinalegal.com
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