Viet Nam - A new engine of growth for the region

AMRO forecasts that Viet Nam will continue to lead ASEAN+3 growth in 2026, thanks to record FDI, an enhanced role in supply chains, and green growth drivers.

The ASEAN+3 Macroeconomic Research Office (AMRO) has just released its 2026 forecast: Viet Nam will continue to lead growth within the ASEAN+3 bloc. This result reflects Viet Nam's increasingly prominent role in the regional supply chain. In particular, realized FDI reached over US$27 billion – the highest level in the last five years. This capital flow is strongly directed towards high-tech manufacturing and green export services, paving the way for a new, more sustainable growth cycle.

Instead of building conventional vessels, the VARD Vung Tau shipyard is now focusing on building ships for the construction and operation of offshore wind farms. The next investment strategy is to transfer complex shipbuilding projects from Europe to Viet Nam, leveraging the combination of cost-effectiveness and high-level technical expertise. In the eyes of many investors, Viet Nam has moved beyond its "cheap labor" image to become a high-value manufacturing hub.

Mr. Sivert Skarn, General Director of VARD Vung Tau, stated: "The 'Made in Viet Nam' ships we built are currently operating worldwide . And I believe that this expansion of production also demonstrates that Viet Nam is not only a destination for sustainable growth, but also an important link in the supply chain of sustainable green growth in the region and globally."

Viet Nam is currently considered a shining star among investment destinations for European businesses. According to the latest surveys, 50% of EU businesses in Viet Nam said they will expand their investments in 2026, and 82% expect to maintain stable growth.

Mr. Ville Tavio, Finland's Minister of Foreign Trade and Development, stated: "Finnish businesses are very interested in investing in Viet Nam. We have companies in the fields of power generation, water solutions, etc. The success of the Viet Nam-EU Free Trade Agreement makes me believe that there is further potential for effective and high-quality development and growth between the two countries."

According to experts, compared to many countries in the region, Viet Nam possesses distinct advantages in the wave of global supply chain shifts.

Mohammad Mudasser, Director of Transaction Advisory Services - Transformation at PwC Viet Nam, assessed: "Viet Nam has its own advantages, and I would like to highlight two to three of the most important. Firstly, Viet Nam possesses a comprehensive system of free trade agreements, with nearly 20 FTAs ​​covering both national and regional levels. Secondly, its geographical location is very favorable for the 'China +1' strategy. And thirdly, within the region, Vietnam has the most stable political environment. Going into detail, we can see strong investment promotion from the Government and in the logistics sector with a multimodal strategic framework and the participation of the private sector to accelerate infrastructure upgrades instead of relying solely on state resources."

According to international media assessments, if Viet Nam continues to leverage its advantageous position in the supply chain, maintain macroeconomic stability, and upgrade the quality of growth, it has strong grounds to maintain its position as one of the fastest-growing economies in the region in the coming years.

Source: VTV