HÀ NỘI — Singapore’s The Business Times on November 6 hailed Việt Nam as ASEAN’s foremost next-generation trade hub, attributing the achievement to the country’s robust manufacturing base and sustained export expansion.

The report noted that the Vietnamese Government is intensifying investment efforts to advance ambitious reform agendas and realise its growth objectives for 2026.

According to the article, Việt Nam’s growing competitiveness relative to other countries in the region is helping to fuel its rise as one of the top global manufacturing powerhouses.

The country’s position was recently bolstered by its ranking as the second-most promising next-generation trade hub, behind the United Arab Emirates, in a report released on November 5 by Allianz Research. The Germany-headquartered trade analysis team credited Việt Nam’s rise to its surging exports, which solidify its role at the centre of Asia’s manufacturing re-route.

The report said the country’s increasing number of free trade agreements, lower labour costs and diversified export basket have all contributed to its growing influence. In addition, Việt Nam is benefiting from broader regional shifts, such as the offshoring of manufacturing from China and the regionalisation of trade.

Despite a challenging global economic environment marked by rising tariffs, shifting supply chains and geopolitical tensions, Việt Nam’s export sector has remained resilient. Merchandise shipments rose 17.5 per cent year on year to US$42.1 billion in October.

In the first 10 months of 2025, Việt Nam’s total exports and imports climbed 16.2 per cent and 18.6 per cent, respectively. However, on a month-on-month basis, merchandise exports last month contracted by 3.5 per cent in seasonally adjusted terms – a sign that higher US tariffs are beginning to weigh more heavily on Việt Nam’s economy.

Adam Ahmad Samdin, an economist at Oxford Economics, noted that export growth next year remains at risk from potential additional US sectoral tariffs. However, he said the impact could be partly offset by sustained demand for artificial intelligence-related infrastructure, expected to continue into 2026.

Meanwhile, Việt Nam’s manufacturing sector showed signs of strengthening at the start of the fourth quarter of 2025. In October, the Vietnam Manufacturing Purchasing Managers’ Index (PMI) from S&P Global rose sharply to 54.5 from 50.4 in September. The improvement reflects faster growth in output and new orders, including a rebound in export orders for the first time in a year.

Tourism has also been a bright spot for Việt Nam’s economy this year. International arrivals surged by 22.1 per cent year on year to 1.7 million in October, following a 19.5 per cent rise in September, reflecting growing interest in Việt Nam as a tourist destination.

“Tourism should continue to support domestic spending,” said Samdin, though he believes momentum in private consumption has peaked as inflation-adjusted wage growth slows.

Việt Nam’s inflation rate eased to 3.25 per cent in October 2025, down slightly from a three-month high of 3.38 per cent in the previous month. Disbursed state budget investment in October surged by over 29 per cent year on year, maintaining strong momentum from Q3. Meanwhile, the 10th session of the National Assembly has proposed a fiscal deficit of 4.2 per cent of gross domestic product for next year, up from 3.1 per cent in 2024, signalling a firm commitment to higher public spending to support growth.

Foreign investment is also flowing into Việt Nam at a rapid pace. From January to October, foreign direct investment (FDI) increased by 8.8 per cent year on year to $21.3 billion, the highest level for any 10-month period since at least 2007.

Additionally, FDI pledges – representing future inflows – grew by 15.6 per cent to $31.52 billion, indicating strong investor confidence in Việt Nam’s long-term economic outlook. — VNA/VNS