Commentary: How Vietnam Became the Global Economy’s Newest Star

1. Over the past two years, Vietnam has emerged as a prime destination for global investment, particularly among the world's largest corporations and institutional investors. Companies across various sectors—including technology, consumer goods, and manufacturing—are noticeably increasing their presence and capital commitments in Vietnam, seeking new growth opportunities amid global economic shifts. [para. 1]

2. Technology powerhouses such as Nvidia, Microsoft, Google, Qualcomm, and Apple have made significant inroads: Nvidia and Qualcomm have set up research and data centers, Google is investing heavily in data infrastructure, and Apple has extended its manufacturing in Vietnam to include AI-enabled home appliances, in addition to assembling products like iPhones and AirPods. This reflects a strategic shift away from China, often driven by the need for supply-chain diversification and emerging technological trends. [para. 2]

3. The investment boom is not limited to technology. High-profile consumer brands are also deepening their roots in Vietnam. Nike now produces more than half of its footwear and around a third of its apparel there, while jewelry brand Pandora invested over $150 million in a new manufacturing facility—highlighting Vietnam's growing importance as a global production hub. [para. 3]

4. These corporate moves translate directly into explosive trade growth. Vietnam’s total foreign trade volume skyrocketed from $545 billion in 2020 to $900 billion in 2025, propelling the country into the top 20 globally. In contrast to slower global growth trends, Vietnam’s GDP growth is estimated to have exceeded 8% in 2025, reflecting not only rapid but also sustainable and stable economic expansion. [para. 4]

5. The article analyzes the reasons behind this transformation, crediting Vietnam’s success to a strategic “three-axe” reform approach. The first pillar is an unwavering commitment to openness. Vietnam has aggressively pursued next-generation free trade agreements, lowering barriers to trade and investment, and emulated Singapore’s success in attracting foreign direct investment through incentives and a pro-business philosophy. [para. 5][para. 6]

6. As a result of this openness, the manufacturing and processing sector received nearly 60% of all investment in the first half of 2025. Vietnam has thus made a leap from an agrarian economy to a central player within the electronics and textile supply chains, attracting companies not simply for cost savings but due to the nation’s open and efficient business environment. [para. 7]

7. The second pillar centers on strengthening the business climate through regulatory reform. Vietnam’s government focused on removing “legal blockages,” simplifying bureaucratic procedures, lowering compliance costs, and fostering a more predictable and transparent legal environment. This approach is crucial for retaining high-tech companies that value clear and stable regulations for long-term R&D activities, as seen by major investments from Nvidia, Google, and Qualcomm. [para. 8][para. 9]

8. The third major strategy involves energizing domestic consumption and fostering innovation. Vietnam’s policymakers recognize that staying a low-cost factory is unsustainable. By boosting middle-class consumption and promoting sectors like tourism, while also incentivizing innovation—evidenced by Apple and Nvidia’s R&D activities—the country aims to move up the value chain from “assembly workshop” to “innovation lab.” [para. 10]

9. In conclusion, Vietnam’s ascent is attributed to a unique model of bold international integration, determined domestic reform, and an anticipatory focus on technological advancement. This trajectory offers a blueprint for nations navigating geopolitical uncertainties, showing that decisive reforms tailored to local realities can attract global capital and foster sustained national development. [para. 11]