Vietnam's Manufacturing Boom: Exports Surge to 84% of GDP
Vietnam's export landscape has transformed dramatically since the mid-1990s. Once dominated by primary commodities, it now leads with manufactured products, a shift accelerated post-WTO accession in 2007. Today, Vietnam's exports account for a staggering 84% of its GDP, outpacing neighbours like Taiwan and Thailand.
This remarkable growth is driven by foreign investments in complex manufacturing. South Korean and Taiwanese companies have poured funds into sectors like telephones and electronics since 2015, although specific companies remain unidentified. Vietnam's openness to exports now surpasses major hubs like Singapore and Hong Kong, excluding re-exports.
Vietnam's merchandise exports have skyrocketed, from $47.6 billion in 2004 to a colossal $476 billion in 2024. This meteoric rise is fueled by its geographical advantage, access to advanced markets, and a cost-effective labour force. Notably, Vietnam has emerged as a significant reshoring destination for Chinese investments post-2018.
The country is evolving from a final assembly hub to a production base with value-chain upgrading in sectors like electronics, vehicles, and mechanical engineering. Despite regional softness, Vietnam's industrial production and exports remained robust through Q3 2024.
Vietnam's export structure has evolved significantly, with manufactured products now driving its economy. Fidelity investments, strategic location, and a competitive workforce have propelled Vietnam's manufacturing boom. As it upgrades its value chains, Vietnam continues to buck regional trends, solidifying its position as a global manufacturing powerhouse.
