Solid growth foundation

Reuters, Bloomberg and the World Bank (WB) continued to highlight Vietnam’s strong economic performance in the region. According to WB data, the country’s GDP surged from US$16.24 billion in 1994 to US$514.7 billion.

Notably, measured by purchasing power parity, the Vietnamese economy has surpassed US$1 trillion, providing a solid foundation for its goal of becoming a developed nation by 2045.

A report jointly released by US global management consulting firm Bain & Company, Singaporean financial services group DBS and Singapore-based strategic consultancy Vriens & Partners said Vietnam remained a leading growth market in Southeast Asia, with baseline growth projected at 6.2%.

Growth has been driven by its increasingly important role in global supply chains, as the country has become a key manufacturing link for multinational corporations such as Samsung, Intel and Foxconn. Foreign-invested enterprises currently account for around 70% of Vietnam’s total export turnover.

A notable milestone in September was the official inclusion of the Vietnamese stock market among secondary emerging markets by UK index provider FTSE Russell.

According to FTSE Russell, the move could help Vietnam attract around US$6 billion in foreign capital. US asset manager Vanguard also announced plans to increase its investment in Vietnam to US$2.5 billion, reflecting growing international investor interest in the Vietnamese market.

Embracing technology wave

Domestic manufacturing has also shown a strong recovery. According to the S&P Global Manufacturing Purchasing Managers’ Index (PMI), the PMI of Vietnam's manufacturing sector stood at 53.3 in August 2026, marking the 14th consecutive month above the 50-point threshold and the strongest improvement since the beginning of the year.

Commenting on the recovery, S&P Global noted that a key strength of Vietnam’s manufacturing sector is businesses’ ability to optimise operational efficiency. Despite global geopolitical uncertainties, companies have proactively cut costs and reduced excess labour to focus on boosting core output. This approach helped production expand at its fastest pace in more than two years.

Meanwhile, the rapid development of artificial intelligence (AI) and automation is reshaping Vietnam’s labour market. A survey by Japan’s Reeracoen Group and Rakuten Insight showed that among six surveyed ASEAN markets, Vietnam recorded the highest proportion of businesses reporting improved revenue, at 46%, as well as the highest rate of companies expanding recruitment, at 16%. Business confidence also remained relatively positive, with 59% of executives optimistic about their business prospects.

According to Malaysia-based HR Asia, Vietnam is the only Southeast Asian market where AI and automation rank as the leading factor prompting workers to change careers, cited by 39% of respondents.

The trend highlights the increasingly visible impact of technology on career choices in Vietnam and underscores the need for workers to adapt and upgrade their skills as the labour market undergoes rapid transformation.

Vietnam upgraded to upper-middle-income economy by World Bank

VOV.VN - Vietnam has been reclassified as an upper-middle-income economy by the World Bank after its gross national income (GNI) per capita rose above the institution's income threshold, marking an important milestone in the country’s long-term economic development.