Vietnam’s economy is one of the fastest-growing in the world. Can it make the leap into the ranks of middle-income countries?

Hail a taxi in Vietnam’s busy Ho Chi Minh City, and you may be surprised to be picked up by a cyan-colored, modern-looking EV. Unlike the motorcycles and scooters that dominated the city’s streets for years, these electric taxis are both comfortable and homegrown; they’re made by Vin Fast, an ambitious (and expensive) project by Vingroup—one of Vietnam’s largest privately owned companies—that aims to turn the Southeast Asian country into a car manufacturer. It’s not the only indicator of change on Vietnam’s city streets. Fancy Western-style coffee shops, luxury hotels, and high-end consumer brands dot Ho Chi Minh City, even as many Vietnamese continue to eat their lunch on plastic stools in hole-in-the-wall eateries right next door. It’s the kind of vibe that’s only found in a country that’s growing—and growing quickly. And it’s not just the consumer economy. Manufacturing, real estate, infrastructure, and tourism are all expanding. “You license a project in six months, you build it in 12,” says Michael Piro, co-CEO of Indochina Capital and an investor in industrial real estate. “It’s so easy. I’ve never seen, in my 20-year career, an opportunity like this.” Vietnam’s economy grew by 8% last year, almost double the rate recorded across the rest of Southeast Asia. (Malaysia, at 5%, was in second place.) With a GDP of $527 billion, Vietnam’s economy has already overtaken Malaysia and the Philippines, and is quickly catching up to Thailand. The VN-Index, the country’s benchmark stock index, has climbed more than 35% over the past 12 months. And this September, FTSE Russell will upgrade Vietnam to secondary emerging-market status, which could unlock billions of dollars in passive fund flows. It has also, for now, stabilized its relationship with the U.S., its most important customer. In October, Vietnam secured an agreement from Washington that set U.S. tariffs at 20%, far below the 46% originally threatened on “Liberation Day” in April 2025 and roughly in line with rate