The tireless efforts of the Party, State, and Government of Vietnam over the past four decades have yielded significant achievements, bringing prosperity and happiness to the local people. From a nation with a GDP of just 8 billion USD in 1986, Vietnam has risen to rank 34th economy in the world last year with a GDP of 450 billion USD.
The country’s increasing potential and strengthened position in the global arena have fostered strong confidence among both domestic and foreign investors, as well as the broader Vietnamese population.
Building on this glorious yet challenging journey, Vietnam is stepping into a new era – the era of the nation’s rise – striving to create economic breakthroughs in the coming years.
From a nation with a GDP of just 8 billion USD in 1986, Vietnam has risen to rank 34th economy in the world last year with a GDP of 450 billion USD. (Photos: VNA)
Internal economic strength
In 2024, despite numerous challenges and difficulties, Vietnam’s economy maintained a steady growth rate of 7.09%, achieving significant results that have been highly appreciated by the international business community.
According to Professor Hoang Van Cuong, former Vice Rector of the National Economics University, Vietnam’s economy has remained stable across multiple sectors, particularly in exports.
Despite the global decline in consumer demand, the growth rate of export turnover in the domestic economic sector still increased by 19.8%, surpassing the 12.3% growth rate of the foreign direct investment (FDI) sector, according to data from the General Statistics Office of Vietnam.
Cuong noted that domestic consumers now strongly prefer Vietnamese products, to the extent that some foreign goods are being mislabeled as Vietnamese to be sold in the local market.
According to Brand Finance, a leading global brand valuation consultancy, Vietnam’s brand value in 2024 ranked 32nd out of 193 countries, reaching 507 billion USD – an increase of one step and 2% in value compared to 2023.
In recent years, Vietnam’s national brand has made remarkable progress. The country has not only entered the Top 100 strongest national brands, but also recorded the fastest brand value growth in the world from 2019 to 2022.
Viettel Post’s smart sorting technology complex is located in the Quang Minh Industrial Park in Hanoi’s Me Linh district. This is the first smart sorting technology complex in Vietnam. (Photo: VNA)
Promoting green transition for sustainable development
To achieve sustainable development, Vietnam has outlined major strategic directions, including a national strategy for green growth and commitments to reducing emissions.
This transition is a complex process that requires coordinated efforts from the government, businesses, and society, especially in the context of globalisation and increasing pressures from climate change. Despite challenges, this process also offers opportunities for Vietnam.
A production line of completely biodegradable biological products at a factory in Hai Duong province. Enterprises with products earning national brand titles are not only models of quality standards but also pioneers in applying green and sustainable development models. (Photo: VNA)
According to Vu Trung Kien, Director of the Climate Change Response Support Center under the Ministry of Natural Resources and Environment, one of the challenges that Vietnam is facing is the high transition costs and difficulties in capital mobilisation.
Additionally, an incomplete legal framework and policy mechanisms remain significant barriers, Kien added.
However, he noted that Vietnam also has numerous opportunities to capitalise on to become a regional leader in green economic development.
“Strong commitments at international conferences, particularly the 26th UN Climate Change Conference (COP26), where Vietnam pledged to achieve net-zero emissions by 2050, not only demonstrate determination but also facilitate the mobilisation of international resources.”
Support from organisations such as the United Nations, the World Bank, and developed nations, provides opportunities for green technology transfer and capacity building, he added.
Furthermore, Vietnam also boats a lot of natural advantages, with vast potential for solar and wind energy development, which is sufficient to establish itself as Southeast Asia’s renewable energy hub, Kien noted.
Foreign investors’ confidence
Alongside a stable political and social environment, Vietnam’s strong commitment to green and sustainable development has fostered growing confidence among businesses.
According to the latest Business Confidence Index (BCI) report released by the European Chamber of Commerce in Vietnam (EuroCham Vietnam), the confidence of European firms in Vietnam’s business environment reached its highest level in more than two years. The index surged to 61.8% in Q4/2024 from 46.3% in the same period of 2023.
Explaining this increase, Chairman of EuroCham Vietnam, Bruno Jaspaert, attributed it to various factors, including Vietnam’s ongoing economic reforms and its central role in the global sustainable development trend.
He further noted that survey respondents highlighted the importance of Vietnam’s digital and green transformation as key drivers of their positive outlook on the country.
On March 19, 2024, in Hanoi, Prime Minister Pham Minh Chinh attends the 2024 Vietnam Business Forum (VBF). Photo: VNA
Stephen Nagy, Director of Policy Studies at the Yokosuka Council on Asia-Pacific Studies (YCAPS), stated that: “Vietnam is seen as a reliable, flexible and geographically critical country in Southeast Asia and the broader Indo-Pacific region.” This critical position allows Vietnam to share common interests and a thriving economic ecosystem with many other nations in the region, Nagy added.
With wise leadership decisions, Vietnam can deliver tangible benefits to its people by continuing to leverage its “bamboo diplomacy” approach, navigating challenges while fostering a self-reliant and resilient economy, and deepening its integration into the global market, Nagy said.
Meanwhile, Csaba Bundik, former EuroCham Vietnam Executive Director, who has lived and worked in Vietnam for over 15 years, shared that Vietnam has long been an attractive destination for foreign investors, as evidenced by strong foreign direct investment (FDI) inflows.
Recent news, such as Nvidia’s growing interest in the country, has further underscored Vietnam’s increasing appeal to foreign investors. “With its large economy, young population, and strategic geographic location, Vietnam is truly an ideal destination for businesses,” Bundik said./.
