Vietnam: From Tariff Haven to Manufacturing Hub, The Redefined Oriental Opportunity

Stretching across Southeast Asia in an S-shaped strip of land, Vietnam is rapidly emerging as a vital engine of regional economic growth, leveraging its unique geographical location and targeted development strategies. With a population of 100 million, this country is demonstrating remarkable development vitality against the backdrop of its renovation and opening-up policies.

Vietnam’s economic growth trend is exceptionally robust. According to World Bank data, Vietnam has been the fastest-growing economy in the Association of Southeast Asian Nations (ASEAN) for three consecutive decades. In 2024, Vietnam’s total GDP reached $476.3 billion, with an actual growth rate of 7% that exceeded expectations. The economic data for 2025 (as of this year) remains equally impressive.

A deeper analysis of Vietnam’s development model reveals that it is replicating the classic path of the East Asian economic miracle. Centered on export-oriented industrialization, Vietnam has evolved from labor-intensive manufacturing and is gradually transitioning to high-value-added industries. Notably, Vietnam is not simply learning through trial and error; instead, it is consciously drawing on the successful experiences of East Asian economies and adapting them to its own national conditions.

Manufacturing has become the core pillar of Vietnam’s economy. Since 2010, the scale of Vietnam’s manufacturing sector has expanded fivefold, with an annual output value of $116.4 billion last year, accounting for approximately 24% of the country’s GDP. This transformation is largely driven by Vietnam’s competitive advantages: lower labor costs, an average of 8 years of schooling, and a labor force of over 53 million people aged 15 and above, making it a favored manufacturing base for international capital.

According to statistics from Vietnam’s import and export authorities, the country’s total exports in the first 11 months of 2025 reached $430.14 billion, representing a year-on-year increase of 16.1%, and the full-year export volume is projected to exceed $470 billion. This achievement is bolstered by Vietnam’s 16 signed free trade agreements. The country has now ranked among the world’s top 20 exporting economies and maintained a trade surplus for ten consecutive years.

From a tariff haven to a manufacturing hub, Vietnam’s rise presents new opportunities for global enterprises. This emerging market, which boasts both significant growth potential and structural challenges, is not only a key option for global supply chain layout but also a litmus test for enterprises’ ability to adapt to globalization.