L’export to Vietnam For Italian companies, this represents a significant opportunity in a rapidly growing economic environment. Vietnam’s gross domestic product (GDP) grew by 7.091% in 2024 compared to the previous year, exceeding the 6.51% target set by the National Assembly, according to data from the General Statistics Office of Vietnam reported by Vietnam News.
The estimated total GDP for 2024 is over $476 billion, with a GDP per capita of $4,700. The average consumer price index is Increased by 3.6% over 2023, while core inflation rose by an average of 2.71% quarter-on-quarter. Foreign direct investment in 2024 reached its highest level since 2020, exceeding $25 billion, representing a 9.41% increase compared to the previous year.
The main sectors that contributed to this growth were services and industry, followed by agriculture, forestry, and fishing. This progress occurred despite various natural calamities, including Typhoon Yagi in September 2024, which caused more than 300 deaths and at least $3 billion in damages.
The World Bank predicts that in 2025 the Vietnam will record The fastest economic growth among all the developing economies in East Asia. This forecast, which positions Vietnam above its regional neighbors, highlights the’impressive progress of the country, supported by structural reforms, a booming manufacturing sector, and a trade strategy geared towards’internationalization.
After a past of modest economic performance, overshadowed by the Asian giants, Vietnam has established itself as one of the most dynamic emerging markets globally. Since 2010, it has been classified as a middle-income country, with the ambitious goal of becoming An industrialized country by 2030.
Vietnam’s economic growth has been robust over the past decade: nearly 7.1% annually from 2015 to 2019, 3.1% in 2020, and as high as 8.1% in 2022. According to World Bank forecasts, Vietnam’s economic growth Could reach 6.5% in 2025, compared to a regional average of 4.51 TP3T for other developing economies in East Asia. This figure not only attests to Vietnam’s resilience in the face of global challenges, but also demonstrates its ability to reposition in global supply chains, especially in the context of trade tensions between major powers.
In fact, over the past decade, Vietnam has established itself as a major industrial hub in the region, attracting significant foreign direct investment (FDI) in key sectors such as electronics, textiles, and automotive. Recently, the country has further consolidated its position by diversifying its trading partners and exploiting free trade agreements with the’European Union, the United States and other economic blocs.
The country represents one of the main entry points into Southeast Asian markets, arousing great interest among Italian SMEs that see Hanoi as the ideal platform for expanding into ASEAN market.
Several factors explain Vietnam's marked economic growth. In particular, the manufacturing sector Vietnamese, already an economic powerhouse, continues to develop at a sustained pace. The country benefits from companies relocating, particularly Chinese companies, which are seeking to diversify their production bases due to trade tensions between China and the United States. Secondly, Vietnam is investing heavily in modernizing its infrastructure to support industrial expansion.
The manufacturing sector, supported by strong foreign investment inflows attracted by local incentives and the availability of a young, skilled, and low-cost workforce, is the country's growth engine. The industrial structure is constituted at 96% by SME, dynamic, and determined to acquire advanced products, machinery, technology, and management models in order to integrate into the highest value-added international production chains. The advantages offered by free trade agreements, such as those of ASEAN, CPTPP and RCEP, further boost Vietnam's profile as a manufacturing hub.
This growth offers significant opportunities for the’export to Vietnam, making the country an attractive market for global companies seeking to expand their presence in Asia.
In recent decades, Vietnam has made remarkable progress, thanks to targeted economic reforms. After the end of the Vietnam War in 1975 and the US trade embargo until 1994, the market reforms of the 1980s have attracted foreign investmentExports have increased. Membership in ASEAN in 1995 and the WTO in 2007, along with the “global strategic partnership” with the United States in 2023, have strengthened the country's international relations.
Economic reforms have led Vietnam to transition from one of the world's poorest nations to a middle-income economy within a few decades. Now, with the current cyclical recovery, favorable demographics, and the upcoming transition to Emerging Market (EM) status, the country appears poised for another significant step forward in its transformation.
With confidence in China falling due to rising labor costs and uncertain economic outlooks, Vietnam is in prime position to attracting manufacturers who want to reduce their exposure to Beijing.
Foreign direct investment (FDI) in Vietnam Have reached $2.8 billion in the first two months of the year, marking a 9.81% increase compared to 2023. Singapore, Hong Kong, and Japan are the main sources of investment, with Samsung as the largest foreign investor.
The country boasts a well-balanced economy, with current account and trade surpluses. The debt-to-GDP ratio in 2023 is moderate at 37.1%. Demographics continue to support growth, with an expanding middle class expected to exceed 75 million by 2030.
The Ho Chi Minh City Stock Exchange (HoSE) is currently classified as a frontier market, but Vietnam is seeking to achieve emerging market status, which could generate net foreign inflows of $30 billion by 2030.
Investor interest in Vietnam is expected to increase thanks to the new technological system from Korea Exchange (KRX) which will improve stock market liquidity. This strengthening is one of the reasons why the’export to Vietnam it is becoming increasingly relevant, positioning the country as a focal point for Italian companies looking to expand their business beyond national borders.
Vietnam is emerging as a prominent technology hub thanks to the availability of highly skilled programmers at competitive costs. In fact, global tech companies are increasingly recognizing the nation's potential, investing in infrastructure and human resources to tap into local talent. With programmers costing about 90% less than their U.S. counterparts and 15% less than their Indian counterparts, Vietnam is a very attractive option for IT outsourcing.
According to the’Kearney's latest Global Services Location index, Vietnam is ranked as lseventh most interesting location in the world for IT outsourcing. This recognition underscores Vietnam's growing importance as a technology hub, pushing the country to continue to qualify its workforce to meet global demand.
The entry into force of the EVFTA (European Vietnam Free Trade Agreement) in August 2020 eliminated customs duties and bureaucracy, facilitating the exchange of key goods such as electronics, foof&beverage products and pharmaceuticals, and considerably opening the Vietnamese market to EU service exports, such as transport and telecommunications. This represents a significant advantage for the’export to Vietnam, enabling European companies to access a fast-growing market with lower trade barriers.
As mentioned earlier, Vietnam is also investing heavily in infrastructure improvements, recognizing that this boosts the country’s competitiveness. With investments amounting to 5.71% of GDP, Vietnam leads the region in terms of infrastructure spending, with tax incentives for railways and solar energy, a sign of a growing focus on renewable energy.
Vietnam’s rapid demographic and social change is another point of interest. The population has surpassed 99 million and is projected to reach 120 million by 2050. With 70% of the population under 35, the middle class—currently 13% of the population—is projected to reach 26% by 2026 (Source: Export.gov.it). This demographic shift further expands export opportunities, thanks to an increasingly large and diverse consumer base.
Vietnam represents a Strategic partner for Italy in Southeast Asia, while Italy ranks as Vietnam's second-largest trading partner in the European Union. In recent years, trade between the two countries has seen steady growth, with significant increases in 2021 and 2022. Italy primarily exports leather, industrial machinery, textiles, and clothing in Vietnam, which in turn exports phones, electronics and seafood products to Italy.
Benefiting from the EVFTA agreement, cooperation between the two countries is facilitated, pushing Vietnamese companies to modernize their production processes with Italian technologies of the highest level. The “Made in Italy”is seen in Vietnam as a synonym for quality and innovation, opening up further opportunities for Italian products.
The agreement also promotes the sustainable development and environmental protection, sectors where Italian products can have a significant impact, especially in the food sector. Thus, a scenario is envisaged in which trade relations between Italy and Vietnam will continue to strengthen, with mutual benefits.
Octagona, a leader in the’internationalization of enterprises, is ready to support companies from all sectors that wish to expand their market in Vietnam and other Southeast Asian countries. Contact us for more information on how to seize these growth opportunities.
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