EMERGING INDUSTRIES AND TRENDS IN VIETNAM

In recent years, Vietnam has become a prime example of economic strength and resilience in Southeast Asia. While the global economy faced turbulence, Vietnam witnessed Gross Domestic Product (GDP) growth by sustaining its manufacturing industry and maintaining economic stability. Several emerging industries and trends, including renewable energy, logistics, e-commerce, and fintech, are set to shape the future of Vietnam’s economic landscape.

RENEWABLE ENERGY

Vietnam is experiencing remarkable growth in its renewable energy sector, particularly in solar and wind energy. Vietnam’s abundant sunlight and supportive government policies have urged significant investments in solar projects, with utility-scale installations and rooftop solar becoming increasingly prevalent across residential, commercial, and industrial sectors. Simultaneously, Vietnam is harnessing its long coastline and strong winds to tap into its wind energy potential. The government’s Power Development Master Plan VIII outlines ambitious targets for offshore wind power capacity expansion, highlighting the country’s commitment to diversifying its energy mix. Vietnam’s commitment to renewable energy is underscored by its ranking as the third-largest contributor to solar capacity globally.

The government’s ambitious plans, as outlined in the Power Development Master Plan VIII (“PDP8”), aim to increase offshore wind power capacity to 36 GW by 2045. With electricity demand expected to grow by eight percent annually through 2025, Vietnam acknowledges the critical need to develop renewable energy sources to ensure energy security and meet rising power requirements. The recent approval of the PDP8 sets ambitious renewable energy goals for 2030, signaling Vietnam’s commitment to sustainable energy transition. While Vietnam’s renewable energy sector holds great promise, it also faces challenges that need to be addressed. These include grid integration issues, land acquisition for large-scale projects, financing constraints, and regulatory uncertainties. Overcoming these challenges will require concerted efforts from government, industry stakeholders, and international partners.

However, the opportunities presented by renewable energy far outweigh the challenges. Beyond environmental benefits, the renewable energy sector offers economic opportunities, including job creation, technology transfer, and export potential. Moreover, investing in renewable energy enhances energy security by reducing reliance on imported fossil fuels and mitigates the impacts of climate change.

LOGISTICS AND MANUFACTURING

Vietnam’s logistics and manufacturing sectors have been key drivers of economic growth. Despite challenges such as supply chain disruptions caused by global events, these industries remain robust. Vietnam’s strategic geographic location, large population, and expanding labour market position it as an attractive destination for investors.

To accommodate increased demand, especially in the context of vaccination distribution and storage, Vietnam’s logistics sector is evolving rapidly. Cold chain logistics and improved coordination between facilities and ports are areas of focus. Moreover, manufacturers are embracing the fourth industrial revolution (4IR) technologies such as cloud-based applications and robotics to enhance supply chain resilience and efficiency.

E-COMMERCE AND FINTECH

The rise of e-commerce and fintech is reshaping Vietnam’s business landscape. By 2025, the number of digital payment users is projected to surpass 70 million, while e-commerce Gross Merchandise Volume (GMV) is forecasted to reach $56 billion by 2026. These sectors, which relate to the growth of other industries, are expected to continue driving emerging business trends.

The youth-driven population’s embrace of technology fuels the growth of e-commerce in Vietnam. Despite being in its emerging stage, the country’s e-commerce ecosystem offers vast opportunities across various sectors such as logistics, digital payments, social commerce, and fintech. The logistics sector, in particular, benefits from the rising demand for fulfilment services from e-commerce brands and online sellers.

OVERVIEW

Vietnam’s economic resilience and growth prospects are underpinned by its embrace of emerging industries and trends. From renewable energy and logistics to e-commerce and fintech, the country is positioning itself as a regional powerhouse. By leveraging its strengths and addressing challenges, Vietnam has the potential to lead the way in sustainable development and economic prosperity in Southeast Asia.

HOW WE CAN HELP?

Corporate firms play a pivotal role in driving emerging industries and trends in Vietnam through their investments, innovation, and strategic partnerships. Here are several ways in which our team can contribute to the growth of emerging industries in the country.

• Collaborating with local businesses, startups, research institutions, and government agencies can accelerate the development and adoption of new technologies and business models. Partnerships facilitate knowledge sharing, access to resources, and market insights, enabling firms to navigate regulatory complexities and market dynamics more effectively.
• Embracing sustainability principles and CSR initiatives can drive positive social and environmental impacts while enhancing brand reputation and competitiveness. Our team will integrate renewable energy sources into their operations, adopt green manufacturing practices, and support community development projects to contribute to Vietnam’s sustainable development goals.
• Engaging in policy advocacy and dialogue with government stakeholders can shape regulatory frameworks and create an enabling environment for emerging industries to thrive. By advocating for supportive policies, regulatory certainty, and incentives for investment, our team can help in influencing the decision-making processes and drive industry growth.
• Embracing digital technologies and Industry 4.0 solutions can enhance productivity, efficiency, and competitiveness across emerging industries. Our firm will invest in digital infrastructure, automation, and data analytics to optimize operations, streamline supply chains, and deliver innovative products and services to customers.Gross Domestic Product (GDP)