According to the assessment of global investment management company VanEck (USA), the global production shift is making Vietnam a leading manufacturing center thanks to its advantages in geography, human resources and policies.
This breakthrough not only promotes domestic economic growth but also opens up great investment opportunities as the Vietnamese stock market prepares to be upgraded to a emerging market. However, investors also need to pay attention to issues such as exchange rate fluctuations, liquidity and policy risks when participating in the market.
According to VanEck, businesses choose Vietnam instead of other countries thanks to 5 core factors. First of all, geographical advantages. Vietnam has a common border of 1,300km with China, thereby helping to connect directly with existing supply chains and logistics infrastructure.
In addition, competitive labor costs are also an advantage. Significantly lower wages than in China create strong financial momentum for manufacturing enterprises.
Notably, Vietnam also has an advantage in the young labor force, with a population of about 100 million people, an average age of 33.4, a high literacy rate and increasingly skilled human resources.
Vietnam also owns a network of free trade agreements with the European Union, the US and most of Asia, helping to reduce export costs.
Finally, there is the Government's policy, with positive measures to attract FDI through tax incentives, favorable land policies and fast approval procedures.
The above assessments are reinforced by data on investment capital flows and production activities. Xinhua news agency reported that Vietnam attracted 34.65 billion USD of committed foreign investment in the first 6 months of 2026, an increase of 61% compared to the same period last year. In which, the processing and manufacturing sector continues to be the largest destination, attracting 17.91 billion USD. FDI disbursement reached 13.03 billion USD, the highest level in the first half of the past 5 years.
Previously, Xinhua quoted a S&P Global report as saying that Vietnam's manufacturing activity in June continued to improve. The PMI index reached 51.8 points, exceeding the 50 point mark, while production also increased at the fastest rate in 4 months.
Mr. Andrew Harker, Economics Director at S&P Global Market Intelligence, said that Vietnam's manufacturing industry is entering the second half of the year with positive prospects. According to him, businesses have favorable conditions to maintain growth momentum if the international environment is more stable in the remaining months of 2026.
From geographical advantages, human resources, production costs to the ability to attract FDI and expand industrial capacity, Vietnam has a basis to shift from a cost-competitive production destination to an increasingly important link in the global production network.
