Many investors in the GCC are inquiring about the prospects. It was fascinating to meet key local financial players during a packed week in Ho Chi Minh City and learn firsthand about the multiple opportunities.

There are numerous reasons for Vietnam’s burgeoning achievements. The economy has grown at a fast pace over the last few years. If this continues at its current rate of 7% GDP per annum, Vietnam’s development will be comparable to that experienced by the Chinese economy during its golden decade.

Foreign direct investment is actively encouraged through flexible regulation and attractive tax incentives, especially in sectors deemed of special national interest such as high-tech and healthcare. This has attracted substantial investment from multinationals such as Samsung and Google. Other major overseas investors include names such as KKR, SK Investments, Alibaba, Warburg Pincus, TPG, Temasek, GIC, and Softbank.

Another key factor is Vietnam’s young and dynamic population, which is expected to reach 105 million by 2030. The country’s middle class is growing faster than any other Southeast Asian country, supporting increasing consumption, local investment, and FDI.

The country has witnessed a surge in entrepreneurial activity, particularly in the technology and digital sectors. Hanoi and Ho Chi Minh City are emerging as vibrant hubs for startups, supported by a growing number of incubators, accelerators, and co-working spaces. The local talent pool, characterised by a high literacy rate and a strong emphasis on STEM education, provides a solid foundation for innovation and technological advancement.

In addition, all of these factors feed into the “China Plus One” strategy, whereby international businesses are increasingly diversifying investment away from China into other ASEAN countries for reasons of cost, safety, long-term stability, and risk diversification. Vietnam has been a most conspicuous beneficiary of this trend.

The consensus among all the senior bankers, private equity partners, entrepreneurs, and AI/DeFi/Web3 engineers that I met was that the future is overwhelmingly bright. East Asia is slowing down, Southeast Asia is on the rise, and Vietnam is one of the most promising and dynamic markets in the region as it welcomes foreign investment.