Elevating Viet Nam’s Bilateral relations: Vietnam’s 18 Strategic Partnerships, including six Comprehensive ones, deepen cooperation, trust, and market access. Exporters benefit from preferential tariffs, positioning Vietnam as a global supply chain hub and attractive export destination.
Export Growth Target: MoIT set a 6% export growth target for 2025, driven by electronics, textiles, machinery, and agriculture. Strong FTAs, manufacturing hub status, and trade promotion support expansion despite global uncertainties.
FDI Strength: Vietnam attracted USD 38.23 billion FDI in 2024, ranking third in ASEAN. Competitive incentives, infrastructure, and liberalized policies boost investor confidence, especially in high-tech, manufacturing, and renewable energy sectors.
Cross-Border E-Commerce Growth Vietnam’s cross-border e-commerce hit USD 3.4 billion exports in H1 2025. SMEs leverage platforms like Amazon, Shopee, TikTok Shop, driving growth toward USD 50 billion by 2030 with logistics investments0.
1. Strong Economic Growth and Expanding Market Potential
Vietnam has maintained impressive economic performance since the introduction of the Doi Moi economic reforms in 1986. GDP growth is forecast to moderate to 6.8% in 2025 before settling at 6.5% in 2026. Domestic activities, services, and real estate recovery are expected to support growth, while Vietnam continues strengthening its position in global supply chains.
2. Large and Growing Consumer Base
Vietnam offers a highly attractive consumer market with almost 100 million consumers, making it the 15th-largest population globally. Half of the population is under the age of 30, creating a young workforce and consumer base. The country also has one of the fastest-growing middle and affluent classes, increasing demand for high-quality products and services.
3. Trade Agreements and Global Economic Integration
Vietnam has actively expanded its international economic integration through bilateral trade agreements and participation in the Indo-Pacific Economic Framework for Prosperity (IPEF). Since joining the World Trade Organization (WTO) in 2007, Vietnam has become an increasingly important destination for foreign investment and trade while strengthening opportunities in trade, supply chains, clean economy, and fair economy.
4. Reform Agenda
The OECD highlights the importance of strengthening competition by creating a more level playing field between state-owned enterprises and private firms. Greater competition can improve productivity, encourage innovation, and attract more investment. The OECD also emphasizes strengthening social protection systems to reduce inequality, support vulnerable groups, and ensure economic growth benefits are shared broadly.
5. Private Sector Role
The Provincial Competitiveness Index (PCI) 2025 identifies the private sector as a key driver of Vietnam’s economic growth and competitiveness. The private sector plays an important role in creating jobs, attracting investment, encouraging innovation, and supporting business expansion. It contributes to higher productivity, stronger domestic demand, and greater economic resilience through a supportive business environment.
1. Exchange Rate Pressure
Vietnam faced exchange rate pressure in 2024 as the Vietnamese Dong (VND) depreciated by about 5% against the U.S. dollar due to high U.S. interest rates. The State Bank of Vietnam (SBV) sold U.S. dollars from its foreign exchange reserves, reducing FX reserves to around USD 83.1 billion while managing currency stability amid global economic uncertainty.
2. Climate Vulnerability
Vietnam has committed to achieving net zero emissions by 2050, requiring substantial investment in renewable energy, green transportation, and climate-resilient infrastructure. According to the World Bank, the transition could require additional investments of about 6.8% of GDP, equivalent to approximately USD 368 billion by 2040. Climate change could significantly reduce economic growth without effective adaptation measures.
3. Financial Sector Risk
Vietnam’s financial sector faces risks from high corporate debt levels and vulnerabilities within the banking system. Many businesses, particularly in the real estate sector, continue to experience financial stress, increasing the risk of loan defaults. Rising non-performing loans (NPLs), low capital buffers, and weaknesses in corporate bond and real estate markets could affect banking sector stability.
4. Regulatory and Bureaucratic Challenges
While Vietnam offers significant business opportunities, exporters may face bureaucratic delays, complex regulations, and administrative procedures. The evolving regulatory regime, commercial laws, and overlapping responsibilities among government ministries can create a lack of transparency, consistency, and predictability. As a result, project approvals and implementation timelines may often take longer than expected.
5. Global Trade Tensions
Vietnam is vulnerable to higher U.S. tariffs because the United States is its largest export market. According to the IMF, exports to the U.S. account for about 30% of Vietnam’s total exports and around 10% of GDP. Higher tariffs could reduce demand, weaken foreign investment inflows, and slow economic growth.
1. Vietnam as a Preferred Expansion Destination
Vietnam remains one of the most attractive markets for business expansion in the Asia-Pacific region. Continued strong economic growth, ongoing reforms, and a population of almost 100 million people half of whom are under the age of thirty have created a dynamic and rapidly evolving business environment. For foreign companies, this provides opportunities to expand operations and tap into a growing consumer and industrial market.
2. Growing Demand for Infrastructure and Industrial Development
Vietnam continues to invest heavily in infrastructure and industrial development, with infrastructure investment accounting for an average of 5.7% of GDP. Demand for equipment, technologies, engineering services, consulting, and project management remains strong as the country pursues rapid economic development. This creates opportunities for Malaysian firms involved in construction, engineering, transportation, energy, and industrial services.
3. Rising Consumer Spending and Expanding Middle Class
Vietnam’s per capita GDP reached USD 4,086 in 2022, with the government targeting at least USD 18,000 by 2035. Rising income levels, particularly in major urban areas, are driving demand for consumer goods and services. businesses in retail, food and beverage, education, tourism, and lifestyle sectors can benefit from the expanding middle-class population and increasing consumer spending power.
4. Opportunities in High-Growth Sectors
Sectors such as telecommunications, information technology, power generation, transportation infrastructure, environmental technology, aviation, healthcare, and education are expected to continue growing. As Vietnam expands its infrastructure and public services, companies with expertise in these industries can participate through investments, partnerships, and service provision.
5. Demand for Agricultural and Manufacturing Inputs
Vietnam’s export-led manufacturing strategy continues to drive demand for agricultural and industrial inputs. Growing consumption of food products, including meat, dairy, and fruits, also presents opportunities for exporters. In addition, businesses supplying raw materials, feed ingredients, manufacturing components, and related services can benefit from Vietnam’s expanding production and export sectors
1. Market Entry Options
Companies can enter through local agents/distributors or establish a direct presence via representative offices, branch licenses, or foreign investment project licenses. A Representative Office is suitable for market research and business promotion, while a Branch Office allows commercial activities. A Foreign-Invested Enterprise (FIE) enables full business operations, commercial activities, employee hiring, invoicing, and profit generation in Vietnam.
2. Government Support and Incentives in Vietnam
Vietnam continues to enhance its business environment through regulatory reforms and business support initiatives. Under Resolution 02/2026, the government aims to simplify administrative procedures, reduce compliance costs, improve access to capital, land, and skilled labor, while encouraging digital technologies, innovation, green practices, SME development, transparency, and a more predictable investment environment.
3. Different Market Characteristics Between North and South Vietnam
Businesses may need separate marketing strategies for northern and southern Vietnam. The north has a higher concentration of government ministries and regulatory agencies, while the south serves as the country’s main industrial and commercial hub. Consumer behavior and preferences also vary between the two regions, requiring a targeted market approach.
4. Opportunities Through ODA-Funded Projects
Companies operating in transportation, telecommunications, energy, environmental services, civil aviation, and financial services should develop capabilities to participate in Official Development Assistance (ODA) projects funded by the World Bank, Asian Development Bank, and United States Agency for International Development. Vietnam spent approximately USD 128 million on ODA projects, mainly supporting infrastructure, modernization, and human resource development.
Provide leadership as the state-owned oil and gas corporation of Vietnam, overseeing exploration, production, refining, and energy development across the country
Provide joint venture operations between PetroVietnam and Zarubezhneft, specializing in offshore oil exploration and production in the Cuu Long Basin
Provide joint venture operations between PetroVietnam and Gazprom, focusing on natural gas exploration in Vietnam.
Provide operations at the Rang Dong and Phuong Dong oil fields in Block 15-2 offshore Vietnam, with offshore facilities including wellhead platforms and a central processing platform for oil and gas extraction
Provide petroleum exploration and production services in Vietnam’s offshore blocks, operating as a PetroVietnam-led joint venture
Provide exploration and production operations for the Lam Son oil field, managed under PetroVietnam’s joint operating company framework.
Provide petroleum exploration and production in the Thang Long block offshore Vietnam
Provide management of offshore oil fields in the Cuu Long Basin, coordinating exploration and production activities with PetroVietnam and foreign partners
Provides engineering design, consultancy, project management, and technical services for oil and gas, energy, and industrial projects
Supplies engineering, procurement, technical manpower, inspection, and maintenance services for the oil and gas and energy sectors
Provides offshore engineering, fabrication, construction, installation, and maintenance services for oil and gas projects.
Conducts offshore oil and gas exploration, drilling, field development, production, and maintenance services
Provides offshore logistics, marine transportation, port operations, and vessel support services for the oil and gas industry
Performs heavy fabrication, steel structure manufacturing, equipment installation, and construction for energy and industrial projects
Delivers fabrication, mechanical construction, offshore installation, commissioning, and maintenance services for oil and gas facilities
Provides engineering, asset maintenance, equipment supply, and integrated technical services for the oil and gas industry
Provides drilling services, well intervention, production enhancement, hydraulic workover, and digital solutions for the upstream oil and gas industry
Provides engineering, procurement, construction, fabrication, plant maintenance, and offshore installation services
Manufactures and supplies industrial valves, actuators, and flow control solutions, and provides valve servicing, testing, maintenance, and technical support for the oil and gas, petrochemical, and power industries
Develops, owns, and operates Floating Production Storage and Offloading (FPSO) vessels, offshore production assets, and renewable energy project
Specializes in offshore inspection, maintenance, repair, integrity management, and marine support services
Supplies valves, piping products, engineering support, procurement, and technical services for upstream, midstream, and downstream oil and gas projects
Provides integrated engineering, maintenance, repair and overhaul (MRO) and equipment supply services for the oil and gas, energy, marine, and defence industries
MALAYSIAN GOVERNMENT OFFICES IN VIETNAM
Embassy of Malaysia in Vietnam
Embassy of Malaysia, Hanoi
43 -45 Dien Bien Phu Street, Ba Dinh District
Tel: +84 4 3734 3849/ 3734 3820/ 3734 3822 (General enquiries)
Email: mwhanoi@kln.gov.my / han.cons@kln.gov.my
Web: www.kln.gov.my/web/vnm_hanoi
Malaysia External Trade Development Corporation (MATRADE)
1109, Nguyen Van Huong
Thao Dien Ward, Thu Duc City
Ho Chi Minh City Vietnam
Tel: +8424 3829 9023
Email:hcmc@matrade.gov.my
Web: www.kln.gov.my/web/vnm_ho-chi-minh-city
Click i-ogse@mprc.gov.my to request more information
TRADE ASSOCIATIONS/ INSTITUTES BASED IN VIETNAM
MATRADE Hanoi
45-46 Dien Bien Phu Street
Ba Dinh District,
Hanoi, Viet Nam
Name: Mrs. Nguyen Hong Trang – Marketing Officer
Tel: +8428 3822 1468
Email: hanoi.trang@matrade.gov.my
Web: www.matrade.gov.my
MITI Hanoi
Embassy of Malaysia in Vietnam
Name: Mrs Suhaili Ismail – Minister Counsellor (Economics)
Tel: +8424 3734 3836/49
Email: suhaili.ismail@miti.gov.my
Web: www.miti.gov.my
For any enquiries, contact our Administrator
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