South Korea, Japan, and China: Who is driving Vietnam’s manufacturing boom?

Vietnam’s manufacturing ascent predates the U.S.–China trade war and reflects three decades of sustained foreign investment and export-led growth. Manufacturing’s share of GDP rose from under 10 percent in the early 1990s to about 27 percent by 2022, while total trade expanded to more than 180 percent of GDP, making Vietnam one of Asia’s most trade-dependent economies. Foreign-invested firms now account for roughly 70 percent of exports, with manufacturing attracting the majority of inward capital. By comparison, Malaysia approved around USD 45 billion in investments in H1 2025, with foreign capital representing over 56% of total approvals, particularly in high-tech manufacturing and services. Indonesia, while attracting rising FDI, still relies heavily on domestic firms and commodities for its exports. Vietnam’s trade turnover reached USD 930 billion in 2025, equal to more than 170 percent of GDP, according to VietnamExportData. Within this highly FDI-driven system, South Korean and Japanese firms built the early industrial base, while Chinese investors have driven the most rapid recent expansion. Which of these forces now shapes Vietnam’s manufacturing trajectory most decisively?