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vietnam 2025: digital & dynamic

Vietnam 2025: Digital & Dynamic

Vietnam on a Growth Trajectory: From Textiles to Tech Giants – Vietnam’s Digital Revolution

8% GDP Growth – Ambition or Reality?

The Vietnamese government is targeting 8% economic growth for 2025 – an ambitious goal that experts believe is within reach. “Massive infrastructure investments could add 1–1.5% to growth,” explains Mario Timpanaro, portfolio manager of the Lumen Vietnam Fund. A new international airport, nine planned metro lines, and major highway expansions are preparing Vietnam for the future. One of the most ambitious projects is a $67 billion high-speed rail line connecting Hanoi and Ho Chi Minh City.

Tourism Boom in Vietnam – A Source of Momentum for Domestic Consumption

Despite strong economic fundamentals, domestic consumption – which accounts for 55% of GDP – remains subdued. “People are saving more; sales of durable goods have been somewhat weaker than expected,” notes Timpanaro. However, there is positive momentum coming from the tourism sector: visitor numbers rose by 30% in the first two months of 2025, particularly from Europe – with Germany leading. This supports consumption and overall economic growth. Tourism now contributes around 8% to the country's gross national product.

From Textiles to Tech – Vietnam’s Digital Revolution

Vietnam is rapidly transforming from a traditional manufacturing base into a technology hotspot. Major global companies such as Samsung, Intel, Apple, Amkor, and Google already have manufacturing operations in the country. Particularly promising are recent developments from Nvidia and Vietnamese tech firm FPT, who are jointly developing an AI research center in Hanoi. There are also concrete plans for a semiconductor plant. “Vietnam could become one of Southeast Asia’s leading AI hubs,” predicts Timpanaro.

Trump, Tariffs, and Vietnam’s “Bamboo Strategy”

Trade policy uncertainty, especially with the United States, remains a risk factor. However, Vietnam is handling the situation more skillfully than many countries facing U.S. trade deficits. A multi-billion-dollar gas project, major contracts with Boeing, and strategic deals with SpaceX and Nvidia are reinforcing economic ties between Vietnam and the U.S.

Stock Market Surge – Why Vietnam’s Equity Market is Gaining Momentum

The Vietnamese stock market is showing signs of renewed strength: daily trading volumes now range from $800 to $900 million, and after a period of sideways movement, the market is gaining traction. A potential upgrade to Emerging Market status by FTSE Vietnam in September 2025 could be a gamechanger. A reclassification by MSCI is expected within the next 1–2 years and could serve as an even stronger catalyst for investment inflows.

Conclusion: Vietnam Remains a Hidden Investment Gem

We forecast GDP growth of 7%, while corporate earnings are expected to rise by 17%. With a P/E ratio of just 11.8x, the Vietnamese equity market is still attractively valued. It remains a highly appealing investment opportunity for investors seeking meaningful diversification. Political stability and increasing foreign direct investment reaffirm international confidence in the Vietnamese economy. For those looking for long-term growth potential, Vietnam should not be overlooked.

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