In this explainer by EBC Financial Group, we’ll break down the key components of Vietnam’s economic strategy and highlight the initiatives driving its success.

1. Policy Coordination and Trade Strategy

Vietnam’s approach to economic stability starts with strong policy coordination and an ambitious trade strategy. The State Bank of Vietnam (SBV) has played a crucial role in maintaining monetary stability through targeted liquidity adjustments and measures to build public trust in the financial system.

Key Highlights:

- Regional and Global Partnerships: Vietnam has deepened trade ties with ASEAN, the European Union, and the United States. These partnerships have expanded access to diversified markets and strengthened Vietnam’s position in the global supply chain.

- Energy and Trade Agreements: New agreements in energy and trade demonstrate Vietnam’s commitment to industrial advancement and inclusive growth.

By fostering international cooperation, Vietnam is not only boosting its competitiveness but also ensuring its economy remains resilient against global uncertainties.

2. Infrastructure Development: The Backbone of Growth

Infrastructure investment is a cornerstone of Vietnam’s economic strategy. The government recently increased its 2025 infrastructure spending target to $36 billion, up from $31 billion, marking a nearly 40% rise.

Major Projects:

- Rail Link to China: This newly approved project connects nine provinces in Vietnam to China’s Yunnan province. It enhances regional connectivity, facilitates trade flows, and supports industrial growth.

- Cold Chain Logistics: Lotte’s investment in a cold chain facility in Dong Nai reflects growing confidence in Vietnam’s logistics sector. This modernisation supports both domestic industries and export-driven growth.

Long-Term Goals:

Vietnam aims to double its highway network, airport passenger capacity, and seaport capacity by 2030. These initiatives will not only improve transportation but also attract more foreign direct investment (FDI) by enabling companies to access deeper labour pools across the country.

3. Cultural Resilience: Stability at the Household Level

Economic resilience in Vietnam extends beyond government policies to household practices deeply rooted in cultural traditions.

Gold as a Store of Value:

Gold plays a significant role in Vietnamese culture as a trusted tool for safeguarding wealth. With domestic gold prices exceeding VND 75 million per tael, this practice reinforces financial stability at the household level by encouraging savings behaviour during periods of economic transition.

This cultural reliance on tangible assets like gold mirrors practices seen in other emerging economies and contributes to broader financial stability.

4. Balancing Domestic Priorities with Global Trends

Vietnam’s success lies in its ability to align domestic goals with global economic conditions. By integrating monetary stability, industrial development, and international cooperation, the country has created a model for sustainable growth.

Trade Diversification:

Vietnam has actively pursued trade liberalisation through agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and bilateral deals with major economies such as the EU. These efforts have reduced tariffs, improved trade balances, and positioned Vietnam as a key manufacturing hub.

Innovation Focus:

The government is also investing heavily in innovation-driven sectors such as artificial intelligence, big data, and green technologies. These initiatives aim to future-proof the economy while fostering youth employment in emerging industries.

Conclusion: Lessons from Vietnam’s Approach

Vietnam’s multi-layered strategy offers valuable lessons for traders, policymakers, and investors alike. By combining policy coordination, strategic infrastructure investments, cultural resilience, and global partnerships, the country has built an economy that is both dynamic and stable.

For traders looking at emerging markets, Vietnam presents opportunities across sectors like logistics, manufacturing, and technology. Its integrated approach ensures that it remains a resilient player in an ever-changing global landscape.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.