Vietnam market overview

With a young population projected to grow from 98 million to 120 million by 2050, growing wealth, changing consumer attitudes and urbanisation, Vietnam is the Association of Southeast Asian Nations (ASEAN), strongest performer.

Vietnam is increasingly an important alternative Asian hub for manufacturing, investment, and trade.

According to the World Bank, Vietnam’s GDP expanded by 2.8% in 2020 and continues to describe the country as one of the most dynamic emerging countries in the region. Vietnam has a very stable socio-political environment with an increasingly deregulated business environment and has significantly improved the ease of doing business index in the past years currently ranked 70^th.

Energy security remains the key economic priority of the Vietnamese Government with close to $200 billion in energy infrastructure investment over the coming decade to meet its growing power needs.

Vietnam has implemented the National Green Growth Strategy for 2021–2030 to facilitate transition to a green and carbon neutral economy. The government aims to reduce greenhouse gas emissions per GDP at least 15% by 2030.

Key Vietnamese market priorities include energy security, green economy, manufacturing base and innovation engagement.

The bilateral relationship between Vietnam and Australia will strengthen through new bilateral commitments across economic, security and innovation engagement.

Vietnam proactively participates in various Free Trade Agreements (FTAs), showing its rapid integration in the global economy. The FTAs have further boosted international trade and foreign investment into Vietnam. Although Australia and Vietnam do not have a bilateral FTA, there are several regional agreements that both countries are participants in such as the Regional Comprehensive Economic Partnership, Comprehensive Progressive Trans-Pacific Partnership, and the ASEAN Australia–New Zealand FTA.

Queensland and Vietnam

Vietnam is Queensland’s fifth largest export market valued at $2.7 billion.

Vietnam offers opportunities for Queensland companies, particularly in food and beverage, technology, energy, and education, to meet a growing consumer demand for quality products, that will allow Vietnam to leapfrog current socio-economic issues. Vietnam is one of the countries that are active in embracing Industry 4.0 across all sectors.

Resources

• Asialink Business, Vietnam Country Starter Pack
• Asia Society, A Path to Vietnam – Opportunities and Market Insights for Australian Business
• Austrade, Market Profile Vietnam
• Austrade, Market Information Package for Australian education institutions
• DFAT, Market Insights Vietnam