Vietnam Set to Become $1.1 Trillion Economy by 2035

Vietnam, whose real GDP growth was 7.1% last year ahead of most Asian economies, is all set to become a $1.1 trillion economy by 2035, which is 2.5 times its current size, according to Vietnam Private Capital & Innovation Report 2025.

The report, which was jointly released by the Vietnam Private Capital Agency (VPCA), the National Innovation Center (NIC), and Boston Consulting Group (BCG), on Tuesday, also said that Vietnam has attracted $25 billion in foreign direct investment (FDI) disbursed in 2024, up 9% y-o-y.

Vietnam’s middle class is set to comprise 46% of the population by 2030, while the digital economy contributes 18.3% of GDP, which will be 35% by 2030.

Despite a cooling global economy and capital market tightening, Vietnam saw $2.3 billion deployed across 141 deals in 2024. Resilient deal activity, buoyed by fundamentals, signals continued investor confidence even as global venture and private equity flows softened.

Ecosystem Rewired

From capital market reforms to international financial centres and blockchain regulation, Vietnam’s financial infrastructure is maturing at speed. These reforms have been creating clearer exit pathways, de-risking foreign capital, and positioning Vietnam for an investment-grade rating in the near term.

The country is also in the middle of a super cycle of infrastructure investment. With nearly $500 billion in ongoing foreign direct investment, including mega-projects from Samsung, Intel, Lego, and Foxconn, Vietnam is not just a manufacturing hub, it is a strategic node in the global supply chain.

NIC Director Vu Quoc Huy said that Vietnam’s growth story was deeply intertwined with their innovation agenda.

“We are not just investing in infrastructure, but in future-ready ecosystems, where digital talent, deep tech, and international capital converge. This is a pivotal moment to build Vietnam into Asia’s most agile innovation economy,” Huy said.

The report also outlined multiple value-creation pathways for investors, including partnering with local champions to scale across ASEAN and backing early-stage digital start-ups, especially in AI, automation, and agritech.

Other pathways include modernising fragmented traditional sectors with digital tools; investing in climate tech, renewables, and green logistics; and building digital public services and smart infrastructure for tier two cities.

Golden Age

Ben Sheridan, global head of principal investors at BCG, said that investors who understood Vietnam’s unique macroeconomic setup, and act with long-term conviction, can shape the next wave of Southeast Asian growth as they were entering a golden age for private capital in Vietnam as the report was a strategic compass for what’s next.

While private capital inflows account for 35% in value terms, investor participation remains robust. Nearly 150 venture capital investors were active in 2024, led by Singapore, Japan, and Vietnam. Early-stage deals under $0.5 million increased 73%, signalling start-up resilience.

Buyouts comprised $1.7 billion of private equity activity, reflecting a preference for mature, cash-generating assets. Mid-market deals ($100 million-$300 million) surged 2.7 times, underscoring appetite for scalable platforms.

Vietnam is also emerging as a hotbed for next-gen tech sectors as AI start-up funding soared 8 times to $80 million, while agritech investment jumped nine times, driven by food security and digital supply chains.