Last update: April 5, 2024

Despite current global challenges, Vietnam's economy is remains on a solid growth path. The country's gross domestic product (GDP) increased by 5.1% in 2023, making Vietnam once again one of Asia's fastest-growing economies.

🚢 Export economy as a growth driver

Vietnam's export-oriented economy continues to benefit from robust demand. In 2023, up to 70% of GDP will come from exports. Vietnam's main export markets are the USA, China, Japan, the EU and South Korea. Electronics, textiles, shoes and furniture are among the country's most important export goods.

🎢 Outlook

The World Bank forecasts Vietnam's economic growth to be 6.7% in 2024 and 6.8% in 2025. The Vietnamese government is committed to further diversifying the country's economy and improving competitiveness. 

In recent years, the Vietnamese government has created a favorable investment climate that attracts foreign companies. This has led to a steady increase in foreign direct investment (FDI), which increased by 13.5% in 2023 compared to the previous year.

❓ Challenges

Despite positive economic growth, Vietnam faces some challenges. These include persistently high inflation, which is weighing on consumption, as well as the economy's vulnerability to global shocks such as the war in Ukraine.

Inflation in Vietnam has risen steadily since the beginning of 2023, reaching 4.88% in March 2024, the highest level in over two years. The high inflation rates are putting a strain on private household consumption and reducing the purchasing power of the population. The war in Ukraine has led to a decline in tourism to Vietnam. This is partly due to the fact that Ukraine and Russia were important source markets for tourists in Vietnam.


📣 Opportunities for German companies

Vietnam offers good business opportunities for German companies in a range of sectors, including renewable energy, infrastructure, healthcare, agriculture and consumer goods. The World Bank forecasts 3.0% growth for agriculture in 2024. The demand for agricultural products in Vietnam is increasing due to the growing population and rising living standards. Vietnamese agriculture is still relatively traditional and in need of modernization. German companies can contribute to the modernization of Vietnamese agriculture with their know-how and technology. In addition, the demand for health and beauty products is growing rapidly in Vietnam. These include, for example: cosmetics, dietary supplements and fitness equipment.