The story of Vietnam’s remarkable economic ascent is, in many ways, mirrored in the journey of one British fund manager who arrived long before the boom. Dominic Scriven, founder and chairman of Dragon Capital, first moved to Vietnam in the early 1990s, a time when the country had no functioning stock exchange. He spent two years formally studying Vietnamese at Hanoi General University, a commitment that preceded the founding of his asset management firm in 1994 with a modest $16 million.
Today, Scriven is a decorated figure in the country’s financial landscape, having been awarded an OBE and a Vietnamese Labour Order for his contributions. His firm, Dragon Capital, is now described as Vietnam’s largest private investor, a testament to a bet on the country’s long-term potential that is paying substantial dividends. In a recent discussion on the MoneyWeek Talks podcast, Scriven reiterated his view that Vietnam stands as one of the world’s most exciting emerging markets, a perspective grounded in decades of on-the-ground experience.
An Economy on a Tear
The data supports Scriven’s optimism. Vietnam’s GDP grew by 7.09% in 2024, surpassing international forecasts, and projections for 2025 suggest a continuation of robust growth between 6.1% and 6.8%. This trajectory is set to cement its position as ASEAN’s fourth-largest economy, with the government targeting high-income status by 2045.
A primary engine of this growth is foreign direct investment (FDI). In the first two months of 2026 alone, disbursed FDI hit $3.21 billion, an 8.8% year-on-year increase and the highest two-month implementation figure in five years. Total registered FDI for 2025 surpassed $38.4 billion. The government is now actively steering this influx towards higher-value projects, prioritising advanced technology, semiconductors, artificial intelligence, and renewable energy alongside the established manufacturing base.
Sectors in the Spotlight
This strategic focus is creating defined opportunities for investors. Vietnam is already a global leader in electronics, textiles, and consumer goods manufacturing. Beyond this, significant potential lies in renewable energy, supported by government incentives for solar and wind power. The digital economy, including e-commerce and fintech, is expanding rapidly, while development in industrial zones, logistics parks, and smart city projects is driving the real estate and infrastructure sectors. Agriculture and food processing are also gaining importance, with a growing emphasis on sustainability and food security.
The stock market reflects this bullish sentiment. Vietnam’s benchmark VN-Index rallied to a record high of 1918.46 points in January 2026, ranking it among Asia’s best performers. Dragon Capital itself, through funds like the London-listed Vietnam Enterprise Investments Limited (VEIL), has been a key player in market development, participating in landmark IPOs for companies such as Mobile World Group, FPT Corporation, and Asia Commercial Bank.
Navigating the Challenges
However, Scriven and other investors operate in an environment where significant challenges persist. The legal and regulatory framework, while undergoing reform, can be complex, inconsistent, and lack transparency. Bureaucratic delays and overlapping jurisdictions between government agencies are frequently cited concerns.
Corruption remains a problem within some state agencies and enterprises. Infrastructure, though improving, still presents bottlenecks in transport and energy supply in certain regions. Other material risks for businesses include a complex land acquisition process, a shortage of skilled personnel in key sectors, and weak enforcement of intellectual property rights. Furthermore, Vietnam’s heavy dependence on exports leaves its economy exposed to downturns in global demand.
These factors contribute to market volatility; despite the strong index performance, foreign investors have periodically been net sellers, driven by exchange rate fluctuations and profit-taking. Dispute resolution, while improving, can also be a lengthy process with hurdles to the practical enforcement of judgments.
Scriven’s long-term philosophy, emphasising structural growth over decades rather than quarterly cycles, is framed as an approach to navigating this landscape. The broader insights he shared on the challenges and opportunities ahead form part of the MoneyWeek Talks podcast’s remit, which features editors Kalpana Fitzpatrick and Andrew van Sickle in conversation with figures from finance and policy to provide analysis on building and managing wealth.
