In an article recently published on Free Malaysia Today, Phar Kim Beng, a scholar in ASEAN studies and international relations, noted Viet Nam’s remarkable performance in 2025 reflects four interlocking dynamics.
First, export dynamism remained the core driver of growth. In the face of the 20% US import tariffs on its products, Viet Nam recorded total exports of roughly 475 billion USD, up 17% year-on-year.
Notably, exports to the US rose to record levels, generating a trade surplus that defied tariff barriers and global recessionary pressures. These export gains helped lift industrial and retail production by over 9% while inflation stayed subdued at around 3%.
Foreign investment inflows also rose by nearly 9%, reflecting investor confidence in Viet Nam’s manufacturing ecosystem.
Second, the expert continued, Viet Nam has become a global manufacturing hub. Multinational firms from the Republic of Korea, Japan, the US and increasingly China have established major production bases in Vietnam for electronics, apparel and consumer goods.
Localities such as Bac Ninh have been transformed from agrarian backwaters into industrial centres, buoyed by export-oriented corridors that benefit from global supply chain shifts.
Third, domestic demand growth — notably household consumption and investment — supported broader economic momentum. While export performance captured headlines, Viet Nam’s internal market also expanded as incomes rose and middle-class consumption strengthened.
Fourth, strategic resilience in trade and investment policy helped Viet Nam absorb external headwinds, integrating tariff pressures with diversification into new markets and sectors.
Viet Nam is now actively pursuing additional trade deals to reduce its dependency on any single market, even as it aims for an ambitious 10% average growth rate through 2030.
The scholar added that Viet Nam’s achievement is impressive, but it also underscores a broader truth: growth at these levels is possible in Southeast Asia when countries align structural advantages with global trends.
