Vietnam Enters a New Era of Economic Growth and Landmark Investment Opportunities

As reported in the KPMG Vietnam 2026 Outlook, Vietnam is entering an era of structural growth at a time of extremely volatile international trade. The country demonstrates high levels of adaptability, as it undergoes extensive administrative and economic reforms. Therefore, it is essential to analyze macro trends, attractive investment areas, and reform drivers to better understand Vietnam's emerging reality.

Vietnam Macro Trends

Vietnam's macroeconomic trends continue to be an essential driving force behind the country's attractive investment destination status. Vietnam's economy grew by over 8%, reaching $514 billion in gross domestic product (GDP). Vietnam's key role as a favorite destination for global companies to diversify their supply chains makes it one of the most attractive emerging markets to watch in 2025. Vietnam's FDI (Foreign Direct Investment) reached a record-breaking level in 2025, amounting to $27.62 billion.

A significant contribution to Vietnam's economy is generated by its demographic dividend. Almost 63% of Vietnam's population is working-age people, which is an incredibly attractive feature for potential investors. At the same time, Vietnam plays a critical transit role in international trade as an integral part of the ASEAN bloc. With 17 Free Trade Agreements (FTAs), Vietnam serves as a transit hub for goods imported and exported to and from the 600 million ASEAN market. Vietnam possesses excellent infrastructure, enabling it to provide crucial distribution opportunities to over 200 trading partners.

Vietnam Attractiveness for Private Enterprises and Key Reforms

The Vietnamese government has an ambition to make an attractive destination for local and international patients. Vietnam's healthcare market size is estimated to grow to $31.7 billion by 2028. At the same time, the domestic pharmaceutical market size is also expected to grow significantly, reaching $8.7 billion by 2028.

Vietnam's reforms promote an attractive environment for private enterprises and investment, which are the driving force of the country's economy. The Politburo Resolution 68 offers a framework for accelerating private enterprise development, making it an essential reference for both domestic and international investors. Resolution 68 aims to double the number of private enterprises by 2030 and develop 20 large private business groups actively participating in various sectors of Vietnam's economy. Resolution 68 was complemented by Resolution 198, which was passed by the National Assembly. Resolution 198 suggests detailed policies for accelerating the growth of private enterprises. In particular, Resolution 198 allows private enterprises to enjoy preferential treatment and legal protection.

Several critical administrative reforms have been undertaken to simplify and speed up the approval process and make Vietnam more attractive to foreign investors. Audits by state authorities are limited to once a year, with no on-site inspections for tax audits for honest taxpayers. Vietnam introduced CIT (Corporate Income Tax) preferences, among which the most significant one is the three-year CIT exemption for small and medium-sized enterprises (SMEs). Local enterprises are encouraged to invest in research and development (R&D) activities by introducing a 200% deduction of R&D expenses.

To reduce operating costs for high-tech, SME manufacturing, and service enterprises, Vietnam introduced a 30% sublease rent waiver in industrial parks for the first five years of operation. At the same time, local and international SMEs and high-tech enterprises are provided with an annual 2% interest subsidy for ESG (Environmental, Social, and Governance) - conforming investments. Additionally, the draft Personal Income Tax Law suggests substantial tax benefits for overseas students, specialists, scientists, and foreign experts, who are encouraged to gain employment experience in Vietnam. Therefore, Vietnam is eager to become a strategic business and technology hub by offering an attractive environment for the development of private enterprises of various categories.

Future Outlook

Vietnam's reform process makes it an increasingly attractive destination for international businesses looking to diversify their supply chains. Vietnam's macroeconomic trends, combined with extensive administrative and economic reforms, make Vietnam an especially attractive emerging market for global investors.

Vietnam is becoming more attractive as an investment destination as it continues to evolve as a reliable and transparent emerging market with significant opportunities for international businesses. In particular, healthcare is among the most promising investment areas in Vietnam, one of Southeast Asia's most attractive investment destinations.