Vietnam is stepping into 2025 with a clear focus on becoming a global hub for technology and economic development. January marks significant strides in semiconductor investments, cutting-edge AI initiatives, and transformative high-tech projects that are set to reshape the nation’s industrial and economic landscape.
With ambitious plans to enhance infrastructure, attract foreign investments, and foster innovation, Vietnam is positioning itself as a leader in the Asia-Pacific region for advanced manufacturing and sustainable technological advancements. This article explores the major initiatives propelling Vietnam’s progress in the semiconductor and high-tech sectors.
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Vietnam Targets US$499 Billion Economy by 2025
Vietnam’s GDP is projected to grow from US$430 billion in 2023 to US$470 billion in 2024 and US$499 billion in 2025, ranking 12th in Asia. Standard Chartered forecasts growth of 6.8% in 2024 and 6.7% in 2025, driven by manufacturing, trade recovery, and FDI. Trade is expected to reach US$783 billion in 2024, with a US$23 billion surplus. Public investment of US$33.6 billion will enhance infrastructure, including 5,000 km of expressways and the US$1.72 billion Ben Thanh-Suoi Tien metro.
Deputy PM Ho Duc Phoc highlighted the North-South high-speed railway, costing US$67.34 billion, as part of Vietnam’s ambitious growth plans. The government targets over 7% GDP growth in 2024 and possible double-digit growth in 2025. Germany has invested US$2.8 billion in 480 projects, reflecting Vietnam’s appeal as an emerging global economic leader.
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Chinese Investment in Vietnam Reaches New Heights
At the Guangdong-Hong Kong-Macao Greater Bay Area Investment Forum, Vietnam’s appeal to Chinese investors was emphasized, with bilateral trade projected to reach US$200 billion in 2024. Ho Chi Minh City, contributing 27% to Vietnam’s budget, stands out for advancements and investments in high technology, green energy, and logistics. China, Vietnam’s largest import market and second-largest export partner, has invested over US$3.6 billion, ranking third among foreign investors and first in new project numbers at 28.3%.
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Vietnam’s investment-friendly policies have bolstered international confidence, attracting collaborations and advancements in AI, advanced manufacturing, electric vehicles, and green technologies. Strategic ties through Hong Kong enhance access to Greater Bay Area markets, fostering innovation and sustainable growth.
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UK Joins CPTPP, Boosting Vietnam Trade Potential
The UK officially joined the CPTPP on December 15, enhancing trade opportunities with member nations, including Vietnam. With this agreement, the UK gains tariff reductions, particularly on Vietnamese exports, as 87.6% of Vietnam’s tax lines are eliminated, while the UK removes tariffs on 94.4% of Vietnamese goods. Bilateral trade between the UK and Vietnam reached over US$8.1 billion in 2024, highlighting growth in sectors like agriculture, textiles, and renewable energy. The partnership also opens doors for digital trade and innovation, leveraging Vietnam’s growing economy and the UK’s expertise.
As part of the CPTPP, the UK benefits from access to a rapidly expanding economic region, while Vietnam secures opportunities for export diversification, high-quality investment, and technological advancements. Vietnamese agricultural exports, particularly seafood, coffee, and processed goods, stand to gain competitive advantages. The UK now recognizes Vietnam as a market economy, reducing trade barriers and promoting economic integration. Vietnam expects to capitalize on these benefits and advancements to further strengthen its trade, investment, and economic resilience.
Read More: The Definitive Guide to Vietnam’s 17 Active Free Trade Agreements – FTAs
Vietnam Manufacturing Growth Steady Despite Challenges
Vietnam’s manufacturing PMI reached 50.8 in November, slightly below October’s 51.2 but a clear improvement from September’s 47.3. New orders grew, driven by domestic demand, although exports fell to their lowest since July 2023. Despite these challenges, the sector continues to show advancements, with firms focusing on process improvements and capacity building. Employment levels decreased for the second month, and backlogs of work rose for the sixth month, albeit at a slower pace. Input prices increased modestly due to supply shortages and currency fluctuations, while delivery times lengthened for the third consecutive month.
The sector now accounts for two months of continuous growth following the disruption caused by Typhoon Yagi in September. Business confidence dipped to its lowest since January, reflecting caution amidst ongoing challenges. Despite this, firms remain optimistic about long-term growth, supported by advancements in new product launches, business expansions, and rising domestic orders, signaling resilience in the face of supply chain pressures and weaker global demand.
Read More: Setting Up a Manufacturing Company in Vietnam: Benefits, Industries, Procedure
Vietnam Boosts Semiconductor Investment Across Localities
Vietnam is advancing semiconductor industry projects with key localities like Danang, Vinh Phuc, and Binh Duong actively enhancing infrastructure and attracting investors. Danang is expanding its Software Park 2 with a US$31.4 million investment and aims to develop semiconductor and AI labs by 2025, targeting collaboration with Nvidia, Intel, and TSMC. Vinh Phuc is building high-tech industrial parks, with Sumitomo Group constructing a dedicated power station for stable semiconductor manufacturing. Similarly, Binh Duong is developing a concentrated IT zone to position itself as a hub for high-tech and semiconductor enterprises by 2030.
Other regions, including Ho Chi Minh City, Hanoi, and Bac Ninh, are focusing on workforce development through training initiatives to support assembly and testing stages. The government is urged to establish national labs, preferential policies, and training standards to attract global semiconductor leaders. Vietnam attracted US$18.23 billion in semiconductor investments in 2024, up 11.5% year-on-year, emphasizing its pivotal role in strengthening the digital economy and advancing cutting-edge technology.
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Hanoi Invests in Expanding Large-Scale Agriculture
Hanoi is transforming its agricultural sector with over 40,227 hectares of rice fields being converted into high-value production zones, including 15,600 hectares for high-quality rice, nearly 3,000 hectares for safe vegetables, and 7,400 hectares for fruit orchards. The city has established 285 high-tech agricultural models, encompassing 185 crop-based, 45 livestock, and 54 aquaculture projects, yielding 10-15% higher efficiency compared to traditional methods. Concentrated livestock zones now include 582 large-scale farms, while Chuong My district alone features 5,000 hectares for high-quality rice and 800 hectares for pomelo orchards.
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Efforts to scale up agriculture also extend to food safety, slaughtering, and processing infrastructure, alongside partnerships for sustainable production chains. Notably, Phuc Tho district has allocated 480 hectares for safe vegetables, 1,002 hectares for fruit trees, and 454 hectares for ornamental plants. High-tech models, such as orchid cultivation in greenhouses and organic farming, generate annual incomes of US$20,833–US$25,000 per hectare. These initiatives not only modernize farming but also improve resilience against climate change while supporting Hanoi’s goals for environmentally sustainable, globally integrated agricultural systems.
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US$177 Million Investment Boosts Danang Hi-Tech
South Korean company Dentium Co., Ltd. has committed US$177 million to the ICT VINA III factory in Danang Hi-Tech Park, raising the park’s total foreign direct investment to US$875.2 million. The project aligns with Danang’s Hi-Tech Park Development Master Plan for 2030, aiming to attract high-tech specialists and bolster the region’s scientific research. With prior investments totaling US$257 million across three projects, Dentium is driving advancements in high-tech medical equipment manufacturing and enhancing Danang‘s stature as a technology and innovation hub.
Danang Hi-Tech Park exemplifies the city’s success in attracting international investments, hosting over 520 projects with substantial foreign and domestic contributions. By October, Danang had secured 1,012 foreign-invested projects worth nearly US$4.55 billion. Recent approvals for new investments in the park total US$212.2 million in 2023, underscoring its role as a critical engine for high-tech growth and economic development in Vietnam.
Nvidia to Establish Two AI Centers in Vietnam
Nvidia Corporation and Vietnam’s Ministry of Planning and Investment (MPI) have signed an MoU to establish the Vietnam Research and Development Centre (VRDC) and an AI Data Centre. These initiatives aim to bolster Vietnam’s AI capabilities in key industries such as healthcare, education, transportation, and finance. With its tech-savvy and dynamic workforce, Vietnam is seen as a strategic hub for AI development. The project aligns with the national strategy to prioritize AI, accelerating digital transformation and innovation while creating jobs for skilled professionals.
The Vietnamese government has laid strong groundwork for these initiatives by supporting digital infrastructure and innovation ecosystems like the NIC. The scheme to train 50,000 semiconductor engineers by 2030, including 5,000 specializing in AI, further underscores this commitment. Nvidia’s involvement is expected to position Vietnam as a leading AI research hub in Asia, fostering rapid advancements in digital transformation and economic growth.
Read Related: Future-Ready Digital Infrastructure Strategy Approved for 2025 in Vietnam
Conclusion
As Vietnam accelerates its push toward becoming a high-tech powerhouse, January 2025 reflects the nation’s unwavering commitment to modernization and global integration. From groundbreaking semiconductor investments to the establishment of AI research hubs, these advancements underscore Vietnam’s readiness to lead in a fast-evolving technological era. By capitalizing on international partnerships, workforce development, and strategic infrastructure projects, Vietnam is not only paving the way for economic resilience but also setting the stage for long-term technological dominance in the region.
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