Following two years marked by the challenges of COVID-19 and an associated economic slowdown, Vietnam demonstrated resilience and robust recovery in 2022, achieving a GDP growth rate of 8%. In 2023, the economy continued its positive trajectory with a GDP growth rate of 5.1%, and projections indicate further expansion to between 6% and 6.5% in 2024. This positions Vietnam as one of the fastest-growing economies in Southeast Asia.

Over the past three decades, Vietnam has consistently recorded annual GDP growth rates ranging from 5.3% to 7.8%, transitioning the country from extreme poverty to a lower middle-income status. A significant driver of this economic transformation has been international trade, which contributes to 70-80% of Vietnam's GDP.

Vietnam has actively pursued and established trade agreements with numerous global partners, bolstering its confidence in sustaining economic growth and fostering expanded trade relations in the years to come.

Source: Vietnamplus; February 2024

Over the past few years, Vietnam has seen remarkable advancements in its export sector. Export turnover has reached unprecedented highs, accompanied by notable improvements in both the quantity and quality of exported goods. The shift in export composition from raw materials to processed and technological products is particularly noteworthy. Key export categories showing stability and growth include agricultural products, electronics, mobile phones, textiles, and footwear. Certain Vietnamese products are very popular in regional
and global markets, such as rice (Vietnam ranking second globally), cashew nuts, and coffee (ranking fourth globally).

 
In 2023, Vietnam's total export turnover surged to $354.5 billion, resulting in a trade surplus estimated at US$26 billion. The United States and the European Union remain the largest export destinations, accounting for an estimated value of $166 billion. Meanwhile, China retained its position as Vietnam's top import partner, with imports totaling $110.6 billion.

Overall, Vietnam's total import-export turnover in 2023 reached an estimated $683 billion, with exports contributing $354.5 billion and imports accounting for $328.5 billion.

Foreign Direct Investment

Source: Tradingeconomics; March 2024

In 2023, Vietnam recorded a total registered foreign investment capital of $36.608 billion. Over the past two decades, Foreign Direct Investment (FDI) inflows into Vietnam have seen significant growth, contributing substantially to the country's investment share, import/export turnover, and GDP. Notably, there has been a marked increase in FDI, with countries like South Korea targeting investments exceeding $100 billion by 2025. 

In 2023, the manufacturing industry emerged as the most favored sector for FDI in Vietnam, attracting approximately $23.5 billion. This sector plays a pivotal role in Vietnam's export-driven economy, underscoring the importance of manufacturing facilities in supporting the country's export-oriented growth strategy.

Source: Statista; April 2024 

Foreign Relations

In 2023, Vietnam's "Bamboo Diplomacy" strategy, focused on fostering peaceful coexistence and mutually beneficial partnerships, yielded significant diplomatic achievements. High-profile visits from the leaders of China and the United States strengthened Vietnam's diplomatic relations with these key trading partners. Additionally, Vietnam demonstrated its commitment to global solidarity by extending assistance to Turkey following a devastating earthquake.

Vietnam remains steadfast in its policy of fostering friendly and collaborative relations with nations worldwide. As of 2023, Vietnam has established Comprehensive Strategic Partnerships with six major countries: China, Russia, Japan, India, South Korea, and the United States.

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