With extended infrastructure, goods reaching far and wide, the world has come to Vietnam as an attractive destination on the global economic map.
The journey of breakthrough in the global value chain
From rudimentary goods, 50 years ago, Vietnam’s economy was almost closed, with exports of only a few hundred million USD. Today, export turnover has exceeded 730 billion USD, reaching the top 20 largest exporting countries in the world. Registered FDI capital of more than 500 billion USD has made Vietnam a strategic link in the global supply chain.
Vietnam is one of the most attractive destinations for foreign direct investment. Total accumulated FDI capital by the end of last year exceeded the 500 billion USD mark. In particular, export turnover reached more than 730 billion USD – a figure 1,400 times higher than in 1975, demonstrating a strong breakthrough in production capacity and global trade connectivity. 2024 witnessed a record level of FDI attraction, with total realized capital reaching 25.35 billion USD.
From the initial stage of innovation, which mainly attracted FDI through incentives on land, cheap labor, open policies, and attracting FDI at all costs, Vietnam has moved to a new stage of development, selecting high-quality capital flows that are environmentally friendly, applying advanced technology, and making substantial contributions to the country’s long-term development.
Mr. Tran Dinh Cuong – Chairman of Ernst & Young Vietnam said: “Since 2007, in Vietnam’s export basket, we have added 44 new export products, most of which are products with relatively high complexity. Thus, the structure of Vietnam’s exports has changed, meaning that Vietnam’s FDI attraction has changed in a more positive direction, increasing in quality and complexity. In terms of industry structure, Vietnam attracts the largest proportion of foreign investment in the processing and manufacturing sectors. This number accounts for more than 50% of the total investment capital in Vietnam. This is also a huge contribution to GDP growth”.
Aiming at sustainable development, Prime Minister Pham Minh Chinh has issued a directive to promote institutional reform, reduce administrative procedures and continue to improve the investment environment. The goal is to attract high-quality FDI capital flows with advanced technology, environmentally friendly and in line with the orientation of green development and digital economy. This is the driving force for many FDI enterprises to come to Vietnam.
Mr. Ko Tae Yeon – Chairman of the Korean Business Association in Vietnam shared: “For us, tax is only a part when considering the decision to invest in Vietnam. More important factors are the open policy corridor, labor resources with reasonable prices, and increasingly improved infrastructure. Therefore, we still have faith and choose to accompany Vietnam.”
Not only is Vietnam a manufacturing hub, it is also gradually becoming an exporter of software products, digital technology and high-tech services. Vietnam is gradually asserting its role as an important link in the global supply chain.
Economic growth of Ho Chi Minh City over 50 years
Ho Chi Minh City is the most dynamic economic locomotive in the country. With a GRDP of 1.5 quadrillion VND, Ho Chi Minh City continues to play a leading role and experiment with new growth models in the era of national development.
After the country’s reunification, Ho Chi Minh City’s economy experienced two periods of rapid growth associated with the correct policies of the Party and the State. The first period was in the 90s, with the highest growth year in 1995 with a GRDP increase of 15.3%. The second period was in the 2000s, with the highest GRDP growth in 2007 at 12.6%. The result has made Ho Chi Minh City the economic locomotive of the whole country.
Since 2012, the growth rate has slowed down. In 2024, Ho Chi Minh City’s GRDP will reach nearly 1.8 million billion VND, more than 27,000 times higher than in 1986, the first year of Doi Moi.
A few days ago, Prime Minister Pham Minh Chinh signed Official Dispatch No. 47 directing a number of key tasks and solutions to promote economic growth in 2025. This is not just an administrative document, but a roadmap for an aspiration – to bring GDP growth in 2025 above the 8% mark.
Half a century of connecting growth momentum is a testament to Vietnam’s mettle, vision and aspiration. From the dusty construction sites of the early 80s to today’s smart factories – Vietnam has come a long way. 50 years of unification are 50 years of us learning how to connect, creating growth momentum from each land, from each hand. And now, a prosperous economic strip continues to reach out to the ocean.