Just like India and Japan, Vietnam has benefited from the “China plus one” strategy with companies diversifying investments to help reduce their reliance on China.

The country expects to see a 6% to 6.5% GDP growth in 2024 on the back of robust imports and exports, as well as stronger manufacturing activity. 

The optimism in the Vietnamese market has also led to a more than 14% surge in foreign direct investments last year compared with 2022.

According to LSEG data, $29 billion in foreign direct investments were pledged to Vietnam from January to November last year. 

China accounts for half of the new FDI inflows into Vietnam this year, reflecting the attractiveness of the Southeast Asian nation as a rising manufacturing hub, Yun Liu, ASEAN economist at HSBC said.