Vietnam Rises as ASEAN’s Leading Trade Hub with Robust Manufacturing Growth and Expanding Export Market

Published on December 2, 2025

Vietnam, the vibrant Southeast Asian nation, is rapidly transforming into ASEAN’s leading next-generation trade hub, a feat that is placing it firmly on the global map as an essential player in international business. As the Vietnamese government intensifies its efforts to push for ambitious reforms, the country is also making bold moves to become a focal point of international trade. With a robust manufacturing base, impressive export growth, and a series of strategic trade deals, Vietnam’s emergence as a dominant force in global manufacturing is becoming a reality. Positioned to meet the challenges of the global economy, Vietnam is driving its economy forward with great success.

In 2025, the Vietnamese export sector witnessed a staggering 16.2% increase in total exports during the first ten months of the year, while imports grew by an impressive 18.6%. These figures indicate a thriving trade ecosystem within the country, offering unprecedented opportunities for businesses and investors alike. As Vietnam opens its doors to international collaboration, the world is beginning to take notice. The Vietnamese government is also placing a strong emphasis on policy reforms to ensure that Vietnam continues its journey of economic success by 2026.

Vietnam’s Manufacturing Powerhouse

The country has long been regarded for its strong manufacturing base and its ability to adapt to the shifting tides of global trade. In recent years, Vietnam’s manufacturing capacity has accelerated, largely due to its favorable business environment and competitive edge over regional rivals. The country has solidified its position as one of the world’s top manufacturing destinations, with several multinational companies choosing to set up production in Vietnam.

• Low labor costs remain a primary factor driving manufacturing investment into Vietnam. As wages in neighboring countries rise, Vietnam continues to offer an affordable labor force, making it an attractive choice for international companies seeking to keep their operational costs in check.
• Free Trade Agreements (FTAs) are key to Vietnam’s success. Vietnam has signed several agreements with major global economies, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). These agreements have greatly enhanced the country’s trade relations and fostered a business-friendly environment.

Vietnam’s Role in Global Trade Networks

Vietnam’s growing influence in global trade has been noted by several prominent international trade analyses, including Allianz Research. In a report released in November 2025, the firm ranked Vietnam as the second most promising trade hub in the world, just behind the United Arab Emirates. This rapid rise can be attributed to several key factors:

• Expanding export basket: Vietnam has diversified its exports, moving beyond traditional products like textiles and electronics to include newer industries such as artificial intelligence (AI) infrastructure and green technologies.
• Investment in infrastructure: The Vietnamese government has invested heavily in infrastructure development, improving ports, airports, and roads to facilitate seamless trade both regionally and globally.
• Shifting global supply chains: With many companies relocating production from China to other regions, Vietnam has positioned itself as a favorable alternative for manufacturers looking to diversify their supply chains and mitigate risks.

Vietnam’s Economy: Resilience Amidst Global Uncertainty

Despite facing challenges from a shifting global economy, rising tariffs, and geopolitical tensions, Vietnam’s economy has remained remarkably resilient. One of the key drivers of this resilience has been the export sector, which recorded a 17.5% increase in merchandise exports to USD 42.1 billion in October 2025. The country’s manufacturing PMI (Purchasing Managers’ Index) also rose significantly, marking a strong recovery as new export orders picked up for the first time in a year.

• Economic growth projections remain strong for Vietnam, with the government targeting continued expansion despite global challenges.
• Foreign direct investment (FDI) continues to flow into the country, with FDI rising by 8.8% in 2025, totaling USD 21.3 billion by October. This is the highest recorded level of investment in Vietnam in the past decade, signaling international confidence in the nation’s economic future.

Vietnam’s Thriving Tourism Sector

Vietnam’s tourism industry has also witnessed a remarkable surge in 2025, contributing to the country’s economic momentum. In October alone, international arrivals surged by 22.1% year on year, totaling 1.7 million visitors, and the overall rise in tourism has supported domestic spending. As global travelers flock to Vietnam’s cultural landmarks, pristine beaches, and thriving cities, the tourism sector has become one of the country’s most significant economic contributors.

• Hanoi, Ho Chi Minh City, and Phu Quoc Island remain popular destinations for both international tourists and regional travelers, offering a combination of traditional culture and modern amenities.
• Vietnam’s hospitality industry continues to evolve, with the introduction of high-end resorts, boutique hotels, and eco-friendly tourism initiatives to cater to a growing demand for luxury travel experiences.

Vietnam’s Economic Reforms and Fiscal Policy

Vietnam’s government is actively fostering an environment of fiscal stability while maintaining its focus on development. The National Assembly has approved a fiscal deficit of 4.2% of GDP for 2026, signaling a commitment to increasing government spending to stimulate economic growth. Key areas of investment include:

• Public infrastructure: Significant funds are being allocated for the construction of smart cities, modern transportation systems, and green energy projects.
• Innovation and technology: Vietnam is placing a heavy emphasis on digital transformation, with projects aimed at improving smart manufacturing and AI integration.

Investment in Sustainability and Green Technologies

A notable shift in Vietnam’s economic strategy is its growing commitment to sustainable development. The government has prioritized the green economy, encouraging both domestic and international investments in clean energy and eco-friendly technologies. As Vietnam gears up for the future, its strategic focus on sustainability is positioning the nation as a leading hub for green technologies in Southeast Asia.

• Renewable energy projects, particularly in solar and wind power, are gaining traction, aligning with Vietnam’s long-term goals for carbon neutrality.
• Investments in green infrastructure such as electric vehicle charging stations and smart grids are becoming increasingly prominent in urban areas.

Foreign Direct Investment and Global Trust

Foreign investment continues to pour into Vietnam, further solidifying its position as a global trade hub. In 2025, FDI pledges grew by 15.6%, totaling USD 31.5 billion, reflecting investor confidence in the country’s economic prospects. The primary sectors attracting foreign capital include:

• Manufacturing and assembly
• Technology
• Tourism and hospitality
• Renewable energy

Vietnam’s reputation as a stable, attractive investment destination is supported by its commitment to business-friendly reforms, trade liberalization, and investment in human capital.

Conclusion: Vietnam’s Bright Future as a Trade and Tourism Powerhouse

Vietnam is rapidly transforming into one of the most influential economies in the ASEAN region. With robust manufacturing, a booming export sector, and a thriving tourism industry, the country is poised to play a pivotal role in the global economic landscape. As the Vietnamese government continues to pursue ambitious reforms, the country’s future looks brighter than ever.