Vietnam Cements Role as ASEAN Hub Amid Digital, Green Transition

As Southeast Asia accelerates its push towards greater economic connectivity, digital transformation, and green growth, Vietnam is solidifying its position as a central manufacturing, logistics, and digital trade hub, creating new avenues for regional expansion. The nation’s two-way trade with the Association of Southeast Asian Nations (ASEAN) is projected to reach approximately US$91 billion in 2025, a dramatic increase from just $3.26 billion in 1995 when it joined the bloc.

Vietnam's integration into the regional economy has deepened significantly over the past three decades. According to Lê Quốc Phương, former Deputy Director of the Industry and Trade Information Centre under the Ministry of Industry and Trade, the country's participation in regional free trade agreements (FTAs) has provided a powerful impetus for this growth. Key pacts include the ASEAN Free Trade Area (AFTA), the ASEAN Trade in Goods Agreement (ATIGA), and the Regional Comprehensive Economic Partnership (RCEP).

ASEAN now stands as one of Vietnam's largest trading partners, trailing only the United States, China, and the Republic of Korea. Deep tariff reductions within the bloc have not only facilitated Vietnamese exports but also promoted the country's deeper integration into regional production networks.

The bloc is also a critical source of foreign direct investment. Statistics from Vietnam Customs show that eight ASEAN member states have invested across all 18 of Vietnam's economic sectors. The manufacturing and processing industries have been the primary beneficiaries, attracting over 1,000 projects valued at around $22.2 billion. Vietnam has become an essential link in regional supply chains, importing components and materials from partners like Thailand, Malaysia, and Singapore for domestic production, assembly, and subsequent export.

Cooperation is now expanding into high-growth sectors, including the digital economy, green transition, renewable energy, and logistics. A particularly promising area is the ASEAN Power Grid (APG) initiative. With its strategic location and significant offshore wind potential, Vietnam is emerging as a key player in the bloc's energy security strategy. The ASEAN Centre for Energy estimates that full APG connectivity could contribute up to $3 trillion to regional GDP by 2040 and create approximately 1.45 million jobs.

Lê Phương Hoa, Deputy Director of the Institute for Asia-Pacific Studies under the Vietnam Academy of Social Sciences, stressed that maintaining ASEAN centrality is essential for safeguarding the region's development space and strengthening cooperation based on international law.

Expanding Cooperation Space

Beyond traditional trade, the digital economy is becoming a new engine of growth for ASEAN, with Vietnam positioned as one of the region's most dynamic markets. The e-Conomy SEA 2025 report projects that ASEAN's digital economy could reach $305 billion in gross merchandise value (GMV) this year, a 17 per cent year-on-year increase, with e-commerce as the primary driver.

Vietnam is actively promoting digital cooperation through its efforts to conclude the ASEAN Digital Economy Framework Agreement (DEFA). The agreement is expected to facilitate cross-border data flows, enhance digital trade, and enable greater participation of small and medium-sized enterprises in the regional digital ecosystem.

Simultaneously, the green transition is opening new avenues for collaboration. Vietnam’s electric vehicle adoption rate has reached about 33 per cent of total vehicle sales, a figure significantly above the ASEAN average.

Despite this strong growth trajectory, experts believe substantial room remains for deeper cooperation, as intra-ASEAN trade currently accounts for only about 20–22 per cent of the bloc's total trade. To better leverage regional FTAs, Vietnamese enterprises are being encouraged to enhance their competitiveness, strengthen their brands, increase the technological content of their exports, and meet higher standards related to the green transition, digitalisation, and sustainable development.

At the 27th ASEAN Economic Community Council Meeting, Deputy Minister of Industry and Trade Phan Thị Thắng affirmed Vietnam's commitment, stating its readiness to work closely with other ASEAN members to enhance the resilience of the regional economy.