Booming Industries in Vietnam: 3 Key Sectors Driving Growth

Which industry is growing in Vietnam?

Vietnam’s economy is undergoing rapid industrialization and modernization, driven by its strategic location, trade agreements, and robust workforce. As of 2024, key industries such as manufacturing, technology, and renewable energy are among the fastest-growing sectors. These industries benefit from Vietnam’s favourable government policies, increasing foreign investment, and strong global demand for Vietnamese exports.

Top Industry #1: Manufacturing

The manufacturing sector remains the backbone of Vietnam’s economy, contributing almost 25% to the country’s GDP (Ministry of Industry and Trade). Vietnam is a hub for electronics manufacturing, with global companies like Samsung and LG establishing significant operations. Additionally, textiles and garments play a major role in exports, alongside automobile assembly and industrial machinery production.

Key Drivers of Growth of Vietnam’s Manufacturing:

Competitive labour costs and a skilled workforce.
Trade agreements like the CPTPP and EVFTA, boosting exports.
Rapid development of industrial zones to attract FDI

Top Industry #2: Technology

Vietnam’s technology sector is experiencing exponential growth, driven by advancements in digital transformation and the expansion of e-commerce. The country’s IT and software development industry is becoming a hub for outsourcing and start-ups, supported by a young, tech-savvy population. Additionally, fintech and AI development are emerging subsectors with strong potential.

Key Growth Areas in Vietnam’s technology sector

E-commerce: Platforms like Shopee, Tiktok, Lazada dominate the growing online shopping scene.
Software and app development for global clients.

Top Industry #3: Renewable Energy

Vietnam is leading the renewable energy push in Southeast Asia, with solar and wind energy projects gaining significant momentum. The government’s commitment to reducing carbon emissions has attracted both domestic and international investment into this sector. The Government will strive to reduce greenhouse gas emissions per GDP by at least 15 percent by 2030 and at least 30 percent by 2050 compared to 2014. In addition, Government expects to raise the rate of renewable energy in total primary energy supply is expected to 15-20 percent and the forest coverage rate to 42 percent over the next decade.

Key Drivers of Vietnam’s Renewable Energy Industry

Favourable government policies, including tax incentives for renewable projects.
Abundant natural resources for solar and wind energy.
Rising domestic energy demand and export opportunities for green energy

Conclusion

The booming industries in Vietnam are manufacturing, technology, and renewable energy, which highlights the country’s dynamic and evolving economy. Businesses looking to invest in Vietnam should focus on these high-potential sectors, leveraging the country’s strategic advantages and growing consumer market.

Interested in expanding your business in Vietnam?

We conduct market research in Vietnam. With the resources of our local Vietnamese partner, team members, and local researchers, we are able to conduct comprehensive market research and business consulting services. Our work can be tailored according to your specific business needs.