Vietnam’s growth story to sustain momentum: foreign business leaders

On occasion of Vietnam's 14th National Party Congress, scheduled for January 19-25, 2025, The Investor talks with some foreign business leaders on the country’s socio-economic achievements in the past five-year term and expectations for the next five years.

Ko Tae Yeon, chairman of KoCham in Vietnam

Korean firms view Vietnam as strategic medium- and long-term partner

Looking ahead to the next five years, we believe Vietnam is entering a phase in which growth quality and the development model will matter more than headline expansion alone. After a period of rapid progress and significant achievements, the key question is how to sustain and consolidate these gains in a stable, long-term manner.

Our discussions with businesses indicate that a stable policy environment, greater institutional predictability, and consistent implementation are increasingly valued over short-term incentives. When these fundamentals are in place, companies are better positioned to expand investment and pursue strategies anchored in a medium- and long-term outlook.

In the period ahead, we expect Vietnam to continue shifting toward higher value-added industries, technology-driven manufacturing, and accelerated digital transformation. In this process, FDI enterprises will serve not only as investors, but also as long-term partners - bringing expertise, technology, and resources that can support Vietnam’s development objectives.

South Korean businesses, in particular, increasingly view Vietnam as a strategic partner over the medium and long term, rather than simply a production base. If policies and institutions continue to improve in terms of stability and transparency - alongside upgrades to financial and administrative infrastructure - Vietnam-Korea economic cooperation over the next five years will be well placed to deepen meaningfully, both in scale and in quality.

Adam Sitkoff, executive director of AmCham Hanoi

AmCham committed to supporting Vietnam’s next phase of development

The Party Congress is a significant milestone and important event in the political life of the Vietnamese people. After 80 years of independence and four decades of implementing Doi moi (reform), AmCham is confident that decisions at the Party Congress will continue Vietnam's journey of economic transformation.

Today, the United States is both one of Vietnam’s leading sources of investment and its largest export market - evidence of the deep and growing ties between our two economies. AmCham has consistently been a partner for Vietnam in building an open, dynamic, and innovative economy. We look forward to further reforms to empower private enterprises, strengthen governance, reduce unnecessary restrictions, and foster innovation.

AmCham and our members are invested in Vietnam's long-term success. We remain committed to supporting the country’s next phase of development and strategic drive for faster and more sustainable economic growth.

Marcus Persson, country manager of Business Sweden in Vietnam

Swedish companies view Vietnam more than a production base

Vietnam has emerged as one of Southeast Asia’s most dynamic growth stories during the 2021-2025 period. Following the global disruption caused by Covid-19, the economy demonstrated strong resilience and a rapid recovery, outperforming expectations in terms of GDP growth, export performance, and progress toward higher-value economic activities. Foreign direct investment has been a central driver of this performance.

Vietnam is currently Sweden’s largest trading partner in Southeast Asia, and Swedish companies increasingly view Vietnam not only as a production base, but also as a strategic hub within the “China+1” diversification strategy, supported by competitive costs, a young workforce, and strong global market connectivity.

Looking ahead, Business Sweden sees Vietnam entering a new phase of development characterized by strong ambition, active state stewardship, and a greater focus on long-term structural transformation. Vietnam’s leadership has articulated a clear development agenda centered on economic resilience, national competitiveness, and institutional discipline.

Business Sweden also sees growing opportunities in Vietnam’s economic diplomacy, particularly in promoting international cooperation in science and technology, innovation, digital transformation, and the green transition. Sweden and Swedish companies stand ready to support Vietnam in these areas.

Confidence among Swedish firms remains high. In Business Sweden’s 2025 Business Climate Survey, 89% of respondents indicated plans to either increase or maintain their level of investment in Vietnam over the coming years, underscoring Vietnam’s continued attractiveness as a long-term strategic partner.

Yun Liu, ASEAN economist at HSBC Global Research

HSBC expects Vietnam’s sound fundamentals to sustain

In the period of 2021-2025, Vietnam has proved its remarkable economic resilience, with growth averaging at 6.2%. The country has weathered through many challenges well, including a swift post-Covid recovery and strong growth defying the tariff typhoons.

Trade has surged to a record high with widening market share in the U.S. and China, while Vietnam has climbed up the value chain, exporting more products from textiles/footwear to consumer electronics. Vietnam’s trade outperformance is related to the consistent high-quality FDI inflows into Vietnam, covering a wide range of sectors.

We expect Vietnam’s sound fundamentals to continue, capturing its trade outperformance, demographic dividends and attractiveness as an investment destination. For Vietnam, the question is how to further move up the value chain in the manufacturing sector and nurture talents and equip them with the adequate skillsets needed in these strategic sectors.