Vietnam's GDP Growth Surges to 7.4% as Manufacturing Boom Continues
Vietnam's economy grew 7.4% in the third quarter of 2025, driven by a manufacturing boom in electronics and strong FDI inflows from South Korea, Singapore, and Japan.
Third Quarter Figures Exceed Forecasts
Vietnam's General Statistics Office reported GDP growth of 7.4% year-on-year for the third quarter of 2025, exceeding consensus forecasts of 6.8% and marking the fastest quarterly expansion since the post-COVID rebound in 2022. The manufacturing sector grew 9.1%, driven by electronics and garment exports, while the services sector added 7.2%.
For the first nine months of 2025, cumulative GDP growth reached 6.9%, putting Vietnam on track to achieve the government's full-year target of 7.0%. The World Bank's Hanoi office revised its 2025 forecast upward to 6.8% from 6.3%.
Electronics Sector Drives Exports
Total exports in the first nine months hit $298 billion, up 14.2% year-on-year. Electronics and components accounted for $115 billion, overtaking textiles and garments as Vietnam's largest export category for the first time. Samsung's Vietnam operations alone exported $52 billion in the first three quarters, representing 17% of the country's total exports.
Foxconn's expansion in Bac Giang province added 12,000 jobs in the third quarter, bringing its Vietnam workforce to 78,000. Apple supplier Luxshare Precision completed a new $500 million facility in Nghe An province that will produce AirPods and Apple Watch components.
FDI Pipeline Remains Strong
Foreign direct investment disbursement reached $16.8 billion in the first nine months, up 8.9% year-on-year. Registered new FDI hit $24.3 billion, with South Korea ($5.2 billion), Singapore ($4.8 billion), and Japan ($3.1 billion) as the top sources.
Minister of Planning and Investment Nguyen Chi Dung said Vietnam was benefiting from "China Plus One" diversification strategies. "We are receiving inquiries from companies that five years ago would not have considered Vietnam. The talent pipeline is improving and infrastructure gaps are closing," Dung said at an investor conference in Ho Chi Minh City.
Challenges Remain
Infrastructure bottlenecks persist, particularly at northern ports and on the congested National Highway 5 corridor between Hanoi and Hai Phong. The government approved a $4.8 billion expressway expansion plan in September to address logistics constraints.
The State Bank of Vietnam kept its refinancing rate at 4.5%, balancing growth support with inflation management. Consumer price inflation averaged 3.8% in the first nine months, within the central bank's 4.0% ceiling but trending upward due to food and energy costs.
