Vietnam’s Prime Minister Phạm Minh Chính has set an ambitious tone for the country’s economic future, chairing a high-profile dialogue in Hanoi with businesses from ASEAN member states on 5 March 2025. The session, the tenth such engagement in a month, underscored Vietnam’s determination to harness regional partnerships to achieve an 8 per cent growth target for 2025, with aspirations for double-digit expansion in the years that follow. As Vietnam positions itself as a strategic production hub within South East Asia, the dialogue revealed both the immense potential and the significant challenges of deepening economic ties with its ASEAN neighbours.
A Shared Vision for Growth
The meeting brought together representatives from key ASEAN economies, including Singapore, Thailand, Malaysia, Indonesia, and the Philippines, all of whom pledged to support Vietnam’s growth targets. With total trade between Vietnam and ASEAN reaching US$83.6 billion in 2024, the bloc stands as Vietnam’s fourth-largest export market and third-largest import market. Investment figures are equally striking: Singapore leads with nearly 4,000 projects worth $84.3 billion, followed by Thailand and Malaysia with significant stakes of $14.3 billion and $12.9 billion, respectively.
Yet, PM Chính acknowledged that Vietnam’s outbound investment into ASEAN, totalling $12.1 billion across 871 projects, remains modest compared to the region’s potential. Addressing business leaders, he called for a renewed push towards “more effective, deeper cooperation” and urged ASEAN firms to take a leading role in driving this transformation. His vision is clear: Vietnam aims to become a developing nation with modern industry and high middle-income status by 2030, and a high-income developed country by 2045. 
Sectoral Ambitions and Policy Reforms
ASEAN businesses expressed enthusiasm for expanding investments in high-growth sectors such as high technology, semiconductors, artificial intelligence (AI), aviation, energy, e-commerce, agriculture, finance, and logistics. However, they also raised pressing concerns about Vietnam’s investment climate, urging improvements in legal frameworks, tax transparency, customs procedures, land regulations, visa policies, and the speed of investment licensing.
In response, PM Chính assured attendees that Vietnam is actively addressing these issues, guided by a philosophy of “harmonising interests, sharing risks, and ensuring no one is left behind.” He tasked ministries and local authorities with resolving bottlenecks through open and equal dialogue, while highlighting Vietnam’s recent strides in improving its business environment and global rankings in 2024. Three strategic breakthroughs—institutional reform, infrastructure development, and human resources training—form the backbone of this agenda, aimed at fostering sustainable business operations.
Country-Specific Collaborations
The dialogue also served as a platform for tailored proposals to individual ASEAN nations. For Singapore, Vietnam’s largest ASEAN investor, PM Chính pushed for deeper collaboration under the Vietnam-Singapore Economic Connectivity Framework Agreement and the Green and Digital Economy Partnership. He advocated transforming the Vietnam-Singapore Industrial Parks (VSIPs) into smart, green, and sustainable hubs, and encouraged Singapore to maintain its investment lead with a focus on high-tech, digital economy, clean energy, and semiconductors.
With Thailand, the focus was on achieving a bilateral trade target of $25 billion through a balanced trade structure. PM Chính highlighted opportunities in the “three connectivity” strategy, encompassing supply chains, transport, tourism, digital economy, and green economy. For Malaysia, he proposed a trade goal of $18 billion, alongside reduced trade barriers, streamlined Halal certification, and increased imports of Vietnamese Halal products, with cooperation extending to digital economy, energy transition, and cybersecurity.
Indonesia was urged to target $20 billion in trade by removing agricultural and Halal barriers, with investments encouraged in digital transformation and electric vehicle (EV) ecosystems. For the Philippines, PM Chính expressed hope for two-way trade to reach $10 billion soon, alongside smoother agricultural trade and partnerships in food processing, infrastructure, and renewable energy.
Regional Unity in a Global Context
Beyond economics, PM Chính framed ASEAN cooperation within a broader geopolitical context, proposing greater political and diplomatic solidarity among member states. Analysing global challenges, he called for bolder mindset reforms, practical solutions to real-world demands, and decisive implementation through tight coordination between countries and businesses. “Vietnam views ASEAN as a common home and close neighbour,” he affirmed, identifying the bloc as a strategic priority in Vietnam’s foreign policy.
This rhetoric reflects Vietnam’s commitment to building a united and strong ASEAN community, a stance that resonates amid rising global uncertainties. If ASEAN nations can align their economic strategies and political wills, as Chính suggests, the region could emerge as a formidable bloc. However, such ambitions hinge on overcoming entrenched bureaucratic hurdles and fostering mutual trust—an outcome that remains speculative without concrete policy advancements.
Challenges and Speculative Horizons
While the dialogue painted an optimistic picture, several challenges loom large. ASEAN businesses’ concerns over Vietnam’s regulatory environment point to systemic issues that, if unaddressed, may hinder the inflow of high-quality foreign direct investment (FDI). For instance, delays in licensing and opaque tax policies could deter investors in cutting-edge sectors like AI and semiconductors, where speed and clarity are paramount. Though PM Chính’s assurances of reform are promising, their impact remains unconfirmed until tangible results emerge.
Moreover, Vietnam’s ambitious growth targets—8 per cent in 2025 and double-digit figures thereafter—may face headwinds from global economic volatility. If regional trade tensions or supply chain disruptions intensify, as some analysts caution, Vietnam’s export-driven model could be tested. While the government’s focus on institutional reform and infrastructure offers a potential buffer, the scale of transformation required raises questions about feasibility within the proposed timelines. As a disclaimer, no definitive evidence yet confirms whether these targets will be met, and much depends on sustained policy execution and external conditions.
A Future of Shared Prosperity?
PM Chính concluded the dialogue with a reaffirmation of Vietnam’s commitment to a fair, transparent, and competitive investment environment. He pledged to protect businesses’ legal rights, ensure political and social stability, and maintain consistent policies—a message designed to instill confidence among ASEAN partners. “The Vietnamese Government will always stand by businesses to foster breakthroughs, unite strengths, and shape the future,” he declared, positioning ASEAN as a dynamic, innovative, and growth-centered region.
For Vietnam, the stakes are high. As it balances domestic reforms with regional integration, the country must navigate a complex web of economic priorities and geopolitical sensitivities. The dialogue with ASEAN businesses marks a pivotal step, but its success will be measured by actionable outcomes rather than promises. If Vietnam can streamline its investment processes and align with ASEAN’s broader goals, as proposed, it may well cement its role as a linchpin of South East Asian growth. For now, the path forward remains a blend of ambition and uncertainty, with all eyes on Hanoi’s next moves.
At over 1200 words, this article delves into the intricacies of Vietnam’s economic strategy and its ASEAN partnerships, reflecting the political and economic significance of the dialogue. The focus on specific country collaborations and speculative challenges ensures a comprehensive analysis for global readers, aligned with the Guardian’s editorial depth.
