Vietnam targets breakthroughs in global value chains

Vietnam is positioning itself for a strategic leap in global manufacturing, shifting from low-value assembly to higher-value capabilities, original manufacturing, and stronger integration into international supply chains. Speaking at the M-TALKS 2025 forum on July 24, Truong Thi Chi Binh, Vice President of the Vietnam Association for Supporting Industries (VASI), stressed that Vietnam must move beyond volume production toward professionalism, partnerships, and advanced capabilities.

Despite global tariff uncertainties and supply chain realignments, Vietnam remains a trusted hub in Southeast Asia. Binh noted that while some foreign-owned manufacturers had considered relocating to Mexico due to tariff risks, most remain in Vietnam due to the long-term stability required for supply chains. The government is also intensifying trade measures, including monitoring product origins and imposing anti-dumping duties, to safeguard competitiveness.

Experts at the forum emphasised that Vietnam must urgently progress from basic processing and assembly to OEM, ODM, and eventually OBM capabilities to gain a stronger voice in the supply chain. A recent U.S. business delegation even explored moving up to 30% of their production to Vietnam—conditional on local suppliers meeting demand.

Recent statistics reinforce optimism: according to the General Statistics Office, 78.4% of manufacturers reported stable or growing new orders in Q2 2025, while FDI into manufacturing rose nearly 4% year-on-year to US$12 billion in the first half. Manufacturing value added now accounts for 26.3% of GDP, close to China’s 28.6%.

Still, challenges remain. Few Vietnamese firms truly meet OEM standards, and many lag behind regional competitors due to missing certifications or lack of cost transparency. Experts urged companies to invest in R&D, design capabilities, and customer insight to climb the value chain. As Binh summarised, “Opportunities exist, but so do immense pressures.”