Despite global economic challenges, private capital activity in Vietnam remained strong, with US$2.3 billion invested across 141 deals in 2024, according to the Vietnam Private Capital & Innovation Report 2025.

The report, published by the Vietnam Private Capital Agency (VPCA), the National Innovation Center (NIC), and Boston Consulting Group (BCG), underscores the country’s growing potential in Southeast Asia.

According to the report, Vietnam achieved a real GDP growth rate of 7.1% in 2024, outpacing many Asian economies. The nation is projected to reach a US$1.1 trillion economy by 2035, more than doubling its current size.

The report highlights Vietnam’s growth in next-generation technology sectors. Funding for AI startups surged eightfold year-on-year to US$80 million.

Meanwhile, investments in agritech grew ninefold due to food security and digital supply chain needs. Greentech investments more than doubled, driven by environmental, social, and governance (ESG) initiatives.

🔗 Source: Vietnam Private Capital & Innovation Report

🧠 Food for thought

1️⃣ Vietnam’s economic miracle rooted in policy continuity and adaptability

Vietnam’s journey from extreme poverty to middle-income status represents one of Asia’s most remarkable economic transformations of the past four decades.

The country has maintained impressive growth consistency, averaging 6-7% annually since the Đổi Mới reforms of 1986 that opened the centrally-planned economy to market forces 1.

This consistency has continued even in challenging global environments, with Vietnam achieving 7.09% growth in 2024 amid worldwide economic headwinds 2.

The transformation originated from pragmatic policy shifts that maintained political stability while liberalizing trade, evidenced by Vietnam’s participation in multiple free trade agreements that helped it become Southeast Asia’s largest clothing exporter by 2017 1.

Unlike many developing economies that experience boom-bust cycles, Vietnam has demonstrated remarkable economic resilience, maintaining positive growth even during major global downturns like the Asian Financial Crisis and the COVID-19 pandemic.

2️⃣ Strategic positioning in evolving global supply chains powers next growth phase

Vietnam has strategically positioned itself as a primary beneficiary of supply chain diversification, particularly as companies seek alternatives to China amid geopolitical tensions.

FDI has remained robust at around $25 billion annually 3, significantly outpacing Vietnam’s regional peers relative to GDP size, with major companies like Samsung, Apple, Intel, Lego, and Foxconn making substantial commitments.