Furthermore, Viet Nam has been one of the preferred destinations for South Korean and Japanese firms choosing to shift their production to the ASEAN region while the country is also set to benefit from its growing network of free trade agreements.

Despite the downturn in exports during 2023, Viet Nam is expected to resume rapid economic growth over the medium-term economic outlook, as exports rebound.

The nation is expected to continue to be a key beneficiary of the shift in global manufacturing supply chains towards competitive Southeast Asian manufacturing hubs, noted the article.

With strong economic expansion projected over the next decade, Viet Nam's total GDP is forecast to increase from US$410 billion in 2022 to US$500 billion by 2025, rising to US$750 billion by 2030.

This translates to very rapid growth in Viet Nam's per capita GDP, from US$4,150 per year in 2022 to US$5,000 per year by 2025 and US$7,300 by 2030, resulting in substantial expansion in the size of Viet Nam's domestic consumer market.

Viet Nam's role as a low-cost manufacturing hub is also expected to continue to grow strongly, helped by the further expansion of existing major industry sectors, notably textiles and electronics, as well as the development of new industry sectors such as autos and petrochemicals, the S&P Global stated.