Vietnam
Vietnam’s favourable demographics, entrepreneurial culture, and strategic location at the centre of the Southeast Asian trading hub, make the country one of Asia’s most compelling investment stories.
With a population exceeding 100 million and an average age of 33, Vietnam is the world’s 15th most populous country. Education is a top priority, with Vietnamese students achieving the second-highest PISA scores in the region. According to World Bank aggregate scores, they outperform peers in both developing economies like Malaysia and Thailand, and developed countries such as Britain and the US.
Since 2023, Vietnam has elevated its diplomatic relations to the highest level of Comprehensive Strategic Partnership (CSP) with the USA, South Korea, Japan, and Australia, adding to existing CSPs with India, China, and Russia. This ‘Bamboo Diplomacy’ successfully balances diplomatic and trade relationships between East and West, making Vietnam one of the world’s most trade-open countries.
Growing consistently at nearly 7% annually, Vietnam is rapidly transforming into an export powerhouse, advancing up the global value chain with a thriving domestic consumer market. As an investment destination, the country continues to offer extraordinary potential.
- The VNI broke through 1,300 in February, its highest level since June 2022, rising 1.3% MoM and 2.8% YTD (TR$).
- Net foreign selling persisted, reaching $673mn YTD, approximately double the average monthly outflow in 2024.
- Domestic investors absorbed much of the selling pressure, with combined ADTV rising to $702mn from $506mn in January as local sentiment strengthened.
- The Prime Minister instructed the SBV to reduce interest rates, prompting 18 banks to lower 12M deposit rates and roll out preferential loan programmes.
- This could provide a tailwind for system-wide credit growth, supporting capital-intensive sectors such as infrastructure, manufacturing, and real estate.
- 2M25 public investment disbursement of $2.4bn lags the $36bn annual target, necessitating accelerated capital deployment.