As global supply chains refocus and geopolitical tensions intensify, Southeast Asia is increasingly drawing foreign direct investment (FDI) and multinational corporations looking for new bases. Among the region, Vietnam is emerging as a standout for its young and growing population, fast-adopting consumers, booming e-commerce, and major infrastructure push. Entering Vietnam now means planting the flag early in a gateway to the ASEAN market and beyond.

A Young Population, Rising Consumption and a Digital Economy

Southeast Asia benefits from one of the youngest and fastest-growing populations in the world. The region is enjoying a convergence of favourable demographics and rising consumer spending. At the same time, e-commerce and digital logistics are growing rapidly, making the region more accessible and efficient as a platform for global brands.

In Vietnam, for example, the retail sector is expanding robustly: in 2024, retail sales of goods and services were estimated at VND 6,391 trillion (≈ US$252 billion), up about 9.4 % over 2023. The combination of a rising middle class, broad internet/mobile penetration and favourable urbanisation trends provide a compelling consumption story for foreign brands.

Vietnam’s FDI Surge and Strategic Positioning

Vietnam has become a magnet for FDI in 2024 and 2025. In 2024 Vietnam’s FDI disbursement reached a record of approximately US$25.35 billion, up 9.4 % from 2023. New registered projects and capital adjustments also rose, indicating investor confidence.

What’s more, foreign investors have been particularly drawn to southern provinces, signalling a shift towards Vietnam’s “second wave” of industrialisation beyond the traditional north. A November 2024 report noted that foreign investors are “flocking to the south” – particularly in provinces such as Đồng Nai near Ho Chi Minh City. Infrastructure spending in Vietnam surged as well – in the first 2 quarters of 2025 infrastructure spending rose about 40 % year-on-year.

Vietnam as the Gateway for Brands and Investors

With its favourable location, dual access to sea and land, and a rapidly developing industrial footprint, Vietnam is positioning itself as a gateway not just to ASEAN but to broader Asia. Many global firms pursuing the “China +1” strategy now look at Vietnam as a prime candidate.

Furthermore, Vietnam has upgraded its diplomatic and economic partnerships: it has signed comprehensive strategic partnerships with 14 major countries in recent years, underscoring its deeper integration into global trade and investment systems. The upshot: for U.S. and European companies looking for a hub to anchor Southeast Asia and diversify away from China or other traditional markets, Vietnam offers a timely opportunity.

Infrastructure Build-Out and the Southern Gateway

A major dynamic is the Vietnamese government’s effort to turn the south (including Ho Chi Minh City, Binh Duong and Ba Ria – Vung Tau) into a key economic gateway. The merged southern metropolis region targets a gross regional domestic product (GRDP) of about US$120.8 billion in 2025 and a seaport capacity that could rival Singapore when fully realised.

At the same time, Vietnam’s infrastructure agenda is accelerating: roads, ports, digital networks, energy – the country is investing heavily to raise its connectivity and industrial readiness.

A Window Before the Crowd

The presence of global trade tensions – notably between the U.S. and China – amplifies the opportunity for third-party markets like Vietnam. As companies seek to diversify supply chains and avoid trade risks, markets with young consumers, rising digital adoption and improving infrastructure become competitively attractive. In this context, Vietnam emerges not just as another production base but as a brand-building platform and entry point into Southeast Asia and even China via preferential trade arrangements.

For brands from overseas, this means: act now. Establish your presence in Vietnam before market headwinds, regulatory shifts or capacity constraints make it harder to enter. The advantage of being early can translate into strong local brand equity, integration into regional supply chains, and preferential access ahead of competitors.

Strategic Imperatives for Brands and Investors

• Anchor in Vietnam, expand in ASEAN: Use Vietnam as a hub, leverage the advantages of this dynamic and densely populated market to build a strong presence, then expand into neighbouring markets (Malaysia, the Philippines, Singapore) and ultimately tap into China-adjacent markets.
• Build infrastructure-ready operations: Choose locations that offer not just low cost but connectivity, digital logistics and links to regional supply chains.
• Prioritise sustainability, governance and transparency: Vietnam increasingly values high-standard compliance, sourcing transparency – which will be differentiators.
• Brand-build early: With youthful consumers and rising incomes, building brand recognition now offers long-term pay-off. Later entrants may face saturation or sharper competition.

Southeast Asia is shifting rapidly in the global investment map — and Vietnam is one of its key transformation engines. With young consumers, booming digital commerce, surging foreign investment, and government commitment to infrastructure and connectivity, Vietnam presents a timely entry point for global companies seeking growth and diversification. For U.S. and European brands seeking a springboard into Asia, the moment is now: while the field is still opening and the runway long, positioning early may yield outsized returns in market presence, integration and brand leadership.