Vietnam

Vietnam’s economy recorded strong performance in 2024, with GDP expanding by 7.09% on the back of solid exports, rising foreign direct investment, and resilient domestic consumption. Inflation remained contained below 4%, creating a stable macroeconomic environment for business operations. For Swiss exporters, these conditions point to firm market demand and relatively stable pricing dynamics, reinforcing Vietnam’s attractiveness as a growing export destination.

Vietnam’s trade performance strengthened notably in 2024, with exports rising by 14.3% to USD 405.5 billion and imports increasing by 16.7% to USD 380.8 billion, resulting in a trade surplus of USD 24.8 billion. This momentum is supported by Vietnam’s broad network of free trade agreements, including the CPTPP and EVFTA, which improve market access and lower tariffs across key export destinations. For Swiss exporters, these frameworks offer opportunities to enhance competitiveness and expand market presence by integrating into Vietnam’s rapidly growing trade ecosystem.

Swiss companies have significant opportunities in the manufacturing sector, particularly in electronics, machinery, and precision instruments, given the strong export growth in these areas. Additionally, the renewable energy sector, especially wind and solar projects, presents promising opportunities for investment. Swiss expertise in precision instruments and renewable technologies can be leveraged to tap into these growing markets.

The most promising sectors for Swiss exporters in Vietnam include manufacturing - particularly electronics, computers, and machinery - where export growth has been exceptionally strong. In 2024, exports of electronic products and components reached USD 72.56 billion, reflecting Vietnam’s role as a major global production hub. This creates solid opportunities for Swiss suppliers of precision machinery, automation solutions, and high-quality components. Renewable energy also presents growing potential, with increasing investment in wind and solar projects to meet rising energy demand. As Vietnam accelerates its energy transition, Swiss expertise in clean-energy technologies and engineering solutions is well positioned to support new project development. These trends underline strong prospects for Swiss companies seeking to expand into high-growth, technology-driven sectors in Vietnam.

Swiss exporters face several challenges in Vietnam, including policy uncertainty in the renewable energy sector and external trade pressures affecting supply chains. Potential retroactive revisions of feed-in tariffs have raised concerns over the viability of an estimated USD 13 billion in planned renewable investments, creating uncertainty for companies supplying technology and equipment to the sector. In addition, new U.S. tariffs on Vietnamese goods may disrupt global value chains and affect Swiss firms that source components or materials from Vietnam. These developments underscore the need for careful risk assessment, diversified sourcing strategies, and close monitoring of regulatory changes.