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"Next Year's News This Week" GOOD morning, vietnam: By Evan Anderson _____ Why Read: Vietnam is now one of the world's fastest-growing economies. Its port systems perched on the edge of Southeast Asia look poised to expand massively, with geopolitical tensions leading to shifting opportunities for production as US/China trade disputes cause businesses to seek new manufacturing hubs. Caught between the CRINK alliance and the US and Europe, Vietnam now stands as an economic flashpoint in the global trade war. This week, we dive into how Vietnam got to where it is today, and where the opportunities and risks lie as the country seeks to walk the tightrope between China, the US, and Europe. _____ HANOI, Oct 20 - Vietnamese Prime Minister Pham Minh Chinh said on Monday the government would target record GDP growth of at least 10% in 2026, saying the Southeast Asian economy had proven resilient despite pressure from external shocks. - Reuters (10/19/25)
Vietnam is changing fast. The nation known in the last century as a war-torn tragedy has begun this century with a far more hopeful story. Reforms and the introduction of capital markets begun in the late 1980s have, today, produced an increasingly impressive juggernaut. GDP growth in Vietnam this year is at 8%, making it the highest-growth larger nation. (It is the 16th-largest country by population, at 105 million.) Increasingly, the country is seen as a replacement for investment and manufacturing options in China, a prospect that presents significant opportunities as the trade war between the US and China develops further. Depending on how you measure it, Vietnam stands today as one of the most hopeful economic stories worldwide. Unlike China, it's also a relatively young country.
Source: CIA World Factbook With a significant population of working age, port infrastructure, proximity to trade routes, lower average wages, and a rising industrial base, it is no surprise that the country is seen as a viable alternative to manufacturing in China. And as a relatively recent addition to the globe's more open-market economies, Vietnam also stands farther back on the development path than its northern neighbor, with plenty of room to grow. First, let's take a look about how we got here.
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