Viet Nam: Factbox
25 February 2025
The Prime Minister is visiting Viet Nam this week, accompanied by minister of State and Investment Nicola Grigg and a delegation of senior business leaders.
Mr Luxon says Viet Nam is a "rising star" of Southeast Asia, with one of the fastest growing economies in the region.
He says he remains committed to reaching a two-way trade goal of US$3 billion (NZ$5.2b) in 2026.
"This year our two countries celebrate 50 years of diplomatic relations. My visit will further energise our relationships, strengthen existing trade, and open the door to more opportunities for New Zealand businesses, to grow incomes and create jobs here at home," he said in a statement.
The PM says trade with Viet Nam has grown by 40 percent in the past five years, and it's a market with "huge opportunity" for New Zealand in the areas of international education, and the food and beverage sector.
He will meet with Vietnamese prime minister Pham Minh Chinh to discuss the strategic partnership between the two countries. He will also deliver a keynote speech at the ASEAN Future Forum in Hanoi.
Here are some key points to understand about Viet Nam:
New Zealand and Viet Nam relations
On July 22, Prime Minister Jacinda Ardern and then-Vietnamese Prime Minister Nguyễn Xuân Phúc announced the two countries would be elevating their bilateral relationship to a strategic partnership.
“The relationship between New Zealand and Viet Nam has grown a lot in recent years, particularly in trade and people-to-people connections,” Ardern said at the time.
2025 is the year the two countries mark 50 years of diplomatic relations.
Read more about the strategic partnership here: Viet Nam and New Zealand announce strategic partnership
Prime Minister Pham Minh Chinh
In Viet Nam, a one-party state, the prime minister acts as the head of government, and is one of the country's top three leaders. The others are the president as head of state and the general secretary of the Communist Party of Viet Nam.
President Chinh previously acted in a string of senior positions in the ruling communist party. He was elected in 2021.
Over his political career, he’s held a number of intelligence-related positions within the Ministry of Public Security. He currently ranks third in the Vietnamese Communist Party after General Secretary Tô Lâm and President Lương Cường.
Viet nam president President Nguyễn Xuân Phúc. Image: Wikimedia
Buyers and sellers are turning to online shopping
The e-Conomy SEA 2024 report, jointly published by Google, Temasek, and Bain & Company, highlights significant growth in Viet Nam's digital economy. The country's Gross Merchandise Value (GMV) is projected to reach $36 billion in 2024, reflecting a compound annual growth rate (CAGR) of 16%. This expansion is primarily driven by e-commerce and online travel sectors.
E-commerce and Online Travel
E-commerce: Viet Nam's e-commerce market is expected to attain a GMV of $22 billion in 2024, marking an 18% year-on-year increase and accounting for 61% of the nation's total digital economy.
Online Travel: The online travel sector is projected to grow by 16% year-on-year, reaching $5 billion in 2024, significantly contributing to the overall GMV.
Viet Nam’s smartphone success
Increasingly often, when you look down at your phone, it’s likely to be partly or wholly made in Viet Nam.
Most of Samsung’s global supply of phones comes from their factories in Viet Nam, while LG has moved its entire smartphone production line from South Korea to Viet Nam. Google shifted its Pixel smartphone production from China last year.
Apple has also been moving its production to Viet Nam (alongside India) too. Analysts project that by the end of 2025, Viet Nam will produce approximately 20% of Apple's iPads and Apple Watches, 5% of MacBooks, and 65% of AirPods. These projections indicate a significant shift in Apple's manufacturing strategy, aiming to diversify its production bases beyond China.
Viet Nam has increasingly been seen as a way for large corporations to diversify their supply chains, particularly as China – a major centre for production – has proven increasingly difficult as a market due to factors such as its ongoing strict Covid prevention measures and geopolitical tensions. The latest threats of economic tariffs on China from Washington have also complicated the picture, but are likely to see more firms cross the border from China to Viet Nam.
A number of smartphone producers - including Samsung - have turned to Viet Nam for production. Photo by Ravi Sharma (https://unsplash.com/@ravinepz?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) on Unsplash (https://unsplash.com/s/photos/samsung?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText)
Cheers to a growing industries
Beer: By 2035, estimates put Viet Nam’s countrywide beer consumption at 5.6 billion litres -
In 2024, Viet Nam's beer industry faced challenges, with production declining by 4% year-on-year in the first eight months. This downturn was attributed to stringent enforcement of drink-driving regulations and economic difficulties impacting consumer spending.
Despite these challenges, the market was valued at approximately USD 3.45 billion in 2024.
Per capita beer consumption in Viet Nam for 2024 was projected at 3.73 litres of pure alcohol, with expectations to rise to 4.14 litres by 2028. Viet Nam is a leader in beer consumption compared to other ASEAN nations and in 2022 the country’s beer consumption was 2.2 percent of the global market.
Coffee: Viet Nam is a powerhouse in the global coffee production world - with robusta beans in particular . In 2024, Viet Nam's coffee exports reached approximately 1.197 million tonnes, generating nearly $5.48 billion in revenue. This marked the first time the country's coffee export value surpassed the $5 billion threshold, despite a decade-low export volume.
The significant increase in export value was primarily due to a substantial rise in coffee prices. The average export price in 2024 was estimated at $4,158 per ton, reflecting a 59.1% increase compared to 2023.
The European Union remains Viet Nam's largest coffee export market during the 2023-2024 season, with export values reaching $2 billion, accounting for 38% of the total export volume and 37% of the export value.
Viet Nam remains the second biggest producer and exporter of coffee in the world - after Brazil.
Garments: As of 2024, Viet Nam has surpassed Bangladesh to become the world's second-largest apparel and textile exporter, following China. Viet Nam's textile and garment industry achieved an export turnover of $44 billion in 2024, marking an 11% increase compared to 2023. This growth is attributed to market diversification and technological innovation.
- Asia Media Centre
