Going Global: Finding Asia’s Next Powerhouse in Vietnam

It’s hard to believe that less than a decade ago, Vietnam was still eligible for the World Bank’s concessional financing program for the world’s poorest countries. Today, in contrast, its economy is humming - it’s the fastest growing economy in SouthEast Asia, and one of the fastest growing non-resource economies in the world. In the process, the country is attracting billions in foreign investment, much of it directed towards its tech sector.

I just had the chance to return to Ho Chi Minh City, the engine of Vietnam’s economy, to speak at Tech59’s inaugural tech ecosystem summit, and took the opportunity to dig into what’s driving this rapid growth of this Southeast Asian economy.

Three factors stand out more than anything else; Vietnam's rise appears to be driven by a deliberate strategy of investing in talent, integrating into global supply chains, and creating an environment where both multinational firms and entrepreneurs want to build.

1. Domestic Talent Investment: Vietnam is starting to collect on the demographic dividend that accompanies a population of just over 100 million with a median age of just 33 (for reference: Canada’s median age is 40, Germany’s is 45, Japan’s is 50). The country now graduates over 150,000 STEM graduates annually, and is aiming to produce upwards of 50,000 specialized chip and AI experts by 2030.
   This workforce is driving the growth of both a lower-skill export-oriented manufacturing industry (i.e. reshoring from China) and, more importantly, catalyzing high-value tech manufacturing (semi-conductors) and the growth of the country’s innovation ecosystem.
   

2. Growth in advanced manufacturing: Vietnam’s talent pool is driving a buoyant high-growth manufacturing sector. Most importantly, in particular as a means of escaping the middle-income trap that hinders long-term growth in many emerging economies, is the move into high-value, tech-focused manufacturing. Case in point: As of May 2026, the country has attracted over $14 billion USD  in foreign direct investment (FDI) towards its semi-conductor sector. Nvidia CEO Jensen Huang went so far as to call Vietnam his company’s “second home.”
   Beyond semi-conductors, the appearance of Vinfast EV’s on Canadian highways is a good example of just how quickly Vietnamese manufacturing has and continues to evolve. Vinfast only began production in 2017, yet by 2024 it has rapidly expanded into emerging markets such as Indonesia and the Philippines as well as into Canada and Europe.
   

3. Foreign talent attraction: In 2022, I filmed an episode of Magnetic Cities in Ho Chi Minh City (see here). At the time I was really struck by the number of expatriates and returnees whom I found working in the country’s tech sector. Fast forward to 2026 and it’s clear that Vietnam has become a true magnet for talent from just about everywhere. The conversations at Tech59 amongst investors and founders from neighbouring Singapore, Malaysia, Japan and Europe focused on Vietnam’s quality of life and the momentum that exists in both the country’s general economy and in a startup ecosystem that now ranks top 100 in the world.
   Examples abound but suffice to say when superstars like Dru Nguyen and Dr. Cuong Nguyen Huu Miro choose to forego European and American headstarts to call Ho Chi Minh City home, it’s a very good sign.

Now, Vietnam’s rapid economic growth is causing a few evident challenges that present big opportunities for Canadian innovators. Feeding Vietnam’s increasingly wealthy population requires a huge boost in agricultural productivity that has yet to materialize. The subsequent demand for agtech solutions is surging. The environmental challenges that come with both increasing consumer spending and increasing industrial activity lend themselves to an equally strong demand for cleantech solutions across the economy.

It must be noted, however, that these demand signals notwithstanding, Vietnam remains quite a price-sensitive market so efforts to export tech and tech services need to properly understand the relative B2B marketplace.

One other sector that is receiving significant attention in Vietnam is defence. Traditionally reliant on Russian and Chinese suppliers, Vietnam is now pursuing a “diversified and independent” defence strategy that includes engagement with international partners, including a focus on UAVs, cybersecurity and AI. The December 2026 Defence Expo in Hanoi is an event to mark for defencetech players. By the way, the excellent team at Canada’s consulate in Ho Chi Minh is very well set up to support Canadian companies looking to explore these markets.

A huge thanks to Thuy, Greg and the team at Tech59 for the invitation to join them in Ho Chi Minh, as well as to Annie Dube and her team at Consulate General in Ho Chi Minh for their time and insights.