Vietnam recorded 8.02% GDP growth in 2025, marking its second-highest annual growth rate during the 2011–2025 period, only behind the post-pandemic rebound in 2022.
The economy expanded steadily throughout the year, with each quarter growing faster than the previous one. Fourth-quarter GDP rose by 8.46% year-on-year, the strongest Q4 performance in the past 15 years, signaling sustained momentum rather than a one-off recovery.
Speaking at a government conference on January 8, Minister of Finance Nguyen Van Thang said the economy had surpassed USD 514 billion in size, placing Vietnam among the 32 fastest-growing economies globally in 2025. Unlike the sharp rebound seen in 2022, growth in 2025 was broader-based, supported by services, manufacturing and continued inflows of foreign investment.
Vietnam’s growth engine
The service industry remained the backbone of the economy, accounting for 42.75% of GDP, slightly higher than in 2024. The sector benefited from a strong recovery in tourism, trade, transport and hospitality, with Vietnam recording a record high number of international arrivals in 2025. While its growth ranked just behind the post-pandemic surge in 2022, it continued to provide a stable foundation for overall economic expansion.
At the same time, industry and construction emerged as the fastest-growing sector, expanding by 8.95% and contributing 43.62% to overall GDP growth. In which, manufacturing rose sharply by 9.97% (strongest performance since 2019) while construction grew by 9.62%, reflecting the central role of manufacturing in sustaining Vietnam’s growth momentum.
In the meantime, science, technology and innovation (STI) continued to make a growing contribution to Vietnam’s economy In 2025, science and technology activities were estimated to contribute around 2.5% of GDP, equivalent to VND 320.4 trillion - a 16.3% increase from 2024 and an increase of approximately 51% compared to 2020.
According to the Global Innovation Index (GII) 2025 published by the World Intellectual Property Organization (WIPO), Vietnam ranked 44th out of 139 countries in the world in innovation and placed third in ASEAN, just behind Singapore and Malaysia. The country also ranked 55th out of 100 globally in terms of its startup innovation ecosystem, however the proportion of enterprises engaging in innovation fell to 34.6%, a 4.2% decrease from 2024, according to the Ministry of Science and Technology.
Maintain trade surplus while highly dependent on FDI
In 2025, total trade turnover reached approximately USD 930 billion, with Vietnam posting a trade surplus of over USD 21 billion for the tenth consecutive year. Despite ongoing discussions over reciprocal tariffs, the United States remained Vietnam’s largest export market, with export value rising from USD 119.3 billion in 2024 to USD 153.2 billion in 2025.
Of which, the foreign-investment sector (FDI) accounted for 77.3% of total exports and generated a trade surplus of USD 49.46 billion, while the domestic sector saw a trade deficit of USD 29.43 billion and accounted for 22.7% of total exports. Disbursed FDI rose 9% to USD 27.62 billion, with total registered foreign investment reaching USD 38.42 billion, slightly up 0.5% year-on-year. When this highlights Vietnam’s attractiveness to foreign investors, it also suggests the economy’s continued reliance on foreign capital as its primary export engine.
Target 10% growth in GDP in 2026
The National Assembly has set a range of socio-economic targets for 2026, including GDP growth of at least 10%, the processing and manufacturing industry accounting for about 24.96% of GDP, the consumer price index (CPI) remaining around 4.5%, and labour productivity is expected to grow by approximately 8.5%. In the draft Resolution 01, which is being finalized by the Ministry of Finance, industry and construction are targeted to grow by nearly 12%, while the services sector is targeted for over 9.9%.
To achieve this goal, in addition to traditional growth drivers such as investment, exports and consumption, new policies signal a shift toward structural transformation. Resolution 244/2025/QH15 emphasises the development of new growth models based on science, technology, innovation and digitalisation, as well as pilot “sandbox” mechanisms for emerging economic models, including international financial centres and free trade zones. It also calls for a more substantive recognition of the private sector as a central engine of growth.
According to Dr. Le Duy Binh, Director of Economica Vietnam, Vietnam is well positioned to post strong economic growth in 2026, underpinned by a stable macroeconomic backdrop, a solid growth base from 2025, record levels of trade (estimated at USD 800–850 billion), renewed momentum in the private sector, and a wave of large-scale infrastructure projects launched in 2025, Vietnam Investment Review reported
However, he cautioned that the extent of growth will depend on how effectively Vietnam capitalises on its current advantages—such as monetary easing in the United States and other countries and easing trade tensions with the US—as well as how it manages macroeconomic risks, including inflation, public debt, and delays in transitioning the growth model, which still relies heavily on credit expansion and low-cost labour.