Vietnam is diversifying from low-end manufacturing toward higher value-added industries spanning technology, supporting industries, agriculture and tourism.
The ICT industry highlights Vietnam’s services evolution and now contributes over 5% to GDP. With 50% of the population below 35 years old, Vietnam possesses exceptional home-grown tech talent. Major global tech firms are expanding software development centers to tap this skilled labor pool.
Supporting industries likewise enable manufacturing self-sufficiency, from machinery and equipment to electronics components, logistics and waste treatment. By localizing suppliers— Vietnam aims to capture full value chain benefits rather than just final assembly.
Agriculture is another strategic priority, given 60% of Vietnam’s workforce depends on farming. High-tech agriculture utilizing IoT, robotics and bio-technology will improve productivity, traceability and access to overseas markets. Sustainable aquaculture, smart greenhouses and farm digitization have strong upside.
Vietnam’s strategic location, skilled labor force and participation in various free trade agreements position it as a manufacturing hub in the region. The adoption of Industry 4.0 technologies is expected to further boost the manufacturing sector.
With an aging population and rising middle class—the demand for quality healthcare services and pharmaceutical products is on the rise. Foreign investors can invest in healthcare facilities, research and development and pharmaceutical manufacturing.
As global tourism recovers post-pandemic, Vietnam’s travel sector expects an influx of visitors drawn by stunning landscapes, vibrant cities, delectable cuisine and rich cultural heritage. Vietnam attracted over 18 million international arrivals in 2019 pre-COVID. Luxury resorts, health/wellness retreats, MICE events and eco-adventures represent emerging niches.
Overall, Vietnam strives to nurture not just manufacturing strongholds but also competitive domestic enterprises in sunrise industries from fintech to logistics and beyond. With visionary policies prioritizing innovation, enterprise development and skills training, Vietnam aims to climb regional value chains toward a knowledge-based economy during the 2020s and beyond.
