Viet Nam is rapidly establishing itself as a key economic hub in Southeast Asia, delivering some of ASEAN’s strongest GDP growth as the government pushes industrial reforms, accelerates infrastructure development, and steers the economy towards a greener growth model.

According to the Thai Chamber of Commerce and Industry in Viet Nam, Viet Nam recorded ASEAN’s strongest GDP growth in 2025, expanding by 7% in the first quarter, 7% in the second and 8% in the third, lifting nine-month growth to 7%.

By comparison, the Philippines grew by 5%, 6% and 4%, Indonesia by 5%, 5% and 5%, while Thailand recorded 3%, 3% and 2% over the same quarters.

The chamber expects Viet Nam to remain among the region’s fastest-growing economies over the next five years. It noted that while Thailand is likely to grow at a steadier pace, Viet Nam’s economy is forecast to reach a similar size by 2029.

Viet Nam is pursuing an annual GDP growth target of 10% from 2026 to 2030 as it aims to achieve high-income status by 2045, the chamber said. GDP per capita was estimated at about US$5,000 in 2024 and is projected to rise to around US$8,500 by 2030—an increase of roughly 60%. 

Viet Nam has also set a goal of reaching net-zero carbon emissions by 2050.

Competitive advantages

The chamber cited several structural advantages underpinning Viet Nam’s outlook, including a population of around 106 million in 2025, with nearly 70% in the workforce.

Viet Nam also offers competitive cost conditions, it said, with wages estimated to be about 20% lower than in Thailand and electricity costs about 35% lower—among the lowest in ASEAN. 

It added that Viet Nam benefits from relatively stable political and monetary policy, alongside an export-oriented foreign-exchange approach.

Foreign direct investment (FDI) reached about US$38 billion in 2024, compared with US$32 billion for Thailand, with inflows increasingly focused on high-tech industries and artificial intelligence, the chamber said. 

It added that Viet Nam’s roadmap to high-income status begins with administrative reform, faster infrastructure rollout, human capital development and a shift towards higher-value industries.

Source: Nation Thailand