Over the past few decades, Vietnam has become an important manufacturing base in Asia. Trade tensions between the US and China accelerated this shift, prompting a growing number of suppliers and multinational companies to move part of their production to Vietnam. Its proximity to China, expanding network of trade agreements, steady economic growth and supportive investment policies have all contributed to this trend. The government is also encouraging investment in higher-value manufacturing and industries.
Location is a major part of the equation. Vietnam offers manufacturers access to established supply chains in China while providing a base within Southeast Asia, where demand and production networks continue to grow. Its long coastline and developing port infrastructure add another advantage, supporting the movement of raw materials and finished goods. Major ports such as Hai Phong and Da Nang connect manufacturers to international shipping routes, making it easier to serve markets across Asia and beyond.
Vietnam’s macro investment context and FDI momentum
The investment numbers point to strong momentum. In 2025, Vietnam registered USD 38.4 billion in FDI and disbursed USD 27.6 billion, the highest implementation in five years. The first five months of 2026 then accelerated to USD 34.65 billion, up 61% year on year, with USD 9.75 billion already disbursed. Processing and manufacturing absorbed roughly 70–80% of it. Singapore, South Korea and China led the inflows.
The Politburo has since set an explicit target: lift the foreign-invested sector to 30% of GDP and attract USD 200–300 billion in registered FDI over 2026–2030. This sits on the path to high-income status by 2045. This is a clear signal to investors considering a multi-decade commitment in Vietnam.
Download the full industry report Vietnams Next Manufacturing Frontier (2026) | Acclime Vietnam to explore more insights about Vietnam’s position in global trade.
A multipolar global trade map
Between 2000 and 2024, global trade stopped being a Western story. The old triad of the United States, Europe and Japan gave way to a denser, multipolar web with China at its centre. Around that core, a ring of “connector” economies emerged to add specialised, cost-effective value, among them Mexico, Thailand, Morocco, India and Vietnam. The first US–China trade tension in 2018 set suppliers in motion. Each subsequent shock, whether pandemic, tariffs or geopolitics, reinforced the same response: keep the cost base low, but avoid depending on a single country for the entire supply chain.
Vietnam was well-positioned to benefit from this shift, for reasons that are structural rather than incidental. It shares a land border with the world’s largest manufacturing hub, so components can move overland in hours. Its coastline and deepwater ports at Hai Phong and the southern gateways provide cost-effective sea access for finished goods bound for export. It has signed 18 free trade agreements, more than any regional peer, including the CPTPP, the EU–Vietnam agreement (EVFTA), RCEP and EFTA. These give exporters preferential or duty-free access to most of the world’s consuming markets. The workforce is also young and literate, with wages that remain materially below China’s.
Navigating challenges and capturing opportunities
The difficulty most factory investors encounter in Vietnam is the sequence of structural choices that follow where to locate, which incentive regime to qualify under, how to design sourcing so that origin claims hold, and what commitments to make on technology and localisation in exchange for preferential treatment. Capital continues to arrive in Vietnam, policy signals point toward sustained openness, and the country’s position in the multipolar trade structure is now structural rather than opportunistic. What has changed is the standard of preparation the environment rewards.
Acclime works with manufacturers at each stage of establishing operations in Vietnam. We advise on entity structuring and investment registration, incentive qualification, industrial zone selection, and the tax and customs planning that determines whether an FTA strategy delivers. Our teams provide the clarity investors need to build in Vietnam with confidence.
Reach out to our experts:
- Rizwan Khan – Managing Partner – r.khan@acclime.com
- Vlad Savin – Partner – v.savin@acclime.com
- Thao Nguyen – Senior Manager, Licensing and Corporate Secretarial – thao.nguyen@acclime.com
