/ Socialist Republic of Vietnam

Bancstac expanded its global R&D team into Vietnam in 2025. We provide sovereign bank infrastructure and payment innovations for regulated financial institutions and make it seamless and cost effective for businesses to accept payments globally.

Overview

Vietnam is a country located in Southeast Asia on the eastern edge of the Indochinese Peninsula. It is bordered by China to the north, Laos and Cambodia to the west, and the South China Sea (East Sea) to the east and south. Vietnam covers an area of approximately 331,212 square kilometers and has an estimated population of 102.2 million as of early 2026. The country is politically divided into 58 provinces and 5 centrally-governed municipalities: Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, and Can Tho.

In 2025, the GDP reached approximately US$514 billion, and per capita GDP was US$5,026. Vietnam's economy is increasingly dominated by the service sector, which accounts for c.42.8% of its GDP. The wholesale, retail trade, and logistics industries are also important components of the service sector. Final consumption and export-oriented manufacturing are the primary drivers of economic growth. The country’s economy is deeply integrated into global value chains, particularly in electronics. Its largest trading partners are the United States, China, South Korea, and Japan. Vietnam produces a wide range of goods and raw materials, including integrated circuits, smartphones, textiles, footwear, and agricultural commodities such as rice, coffee, and pepper. The digital economy and high-tech manufacturing are also expected to be major growth drivers. Additionally, the tourism sector has seen historic growth, contributing c.8.8% to the GDP with over 21 million international arrivals in 2025. The country's industrial and construction sector represents approximately 37.7% of its GDP and employs about 33.4% of the workforce. However, challenges remain regarding infrastructure bottlenecks, energy security, and the need for a more highly skilled labor force. Imports of electronic components, machinery, and refined petroleum are among the highest in the country, with its top import partners being China, South Korea, Japan, and Taiwan.

Vietnam has a rich history dating back thousands of years to the Hung Kings era. The country suffered greatly during the 20th-century conflicts, particularly the Vietnam War (1955–1975). Since the implementation of the Doi Moi economic reforms in 1986, Vietnam has transitioned from a centrally planned economy to a socialist-oriented market economy, working toward becoming a high-income developed nation by 2045.