Local firms must adopt targeted policy reforms and operational upgrades to reverse their declining presence in international trade, according to insights shared at the “Global Supply Chain Shifts and Opportunities for Vietnamese Enterprises” forum, held in Hanoi on September 18.
Addressing the event, Dr. Do Dieu Huong, Deputy Director of the Center for Strategy and Policy at the Institute of World Economics and Politics under the Vietnam Academy of Social Sciences, highlighted a stark divergence between Vietnam’s macroeconomic expansion and the actual competitiveness of domestic companies.
Over three decades of economic integration, free trade agreements, and foreign direct investment inflows have established Vietnam as a major global manufacturing hub. However, rapid top-line trade growth has failed to build proportional strength for local enterprises.
Data presented at the forum underlines a widening structural gap between foreign and domestic sectors. Vietnam’s total trade volume climbed from $668.5 billion in 2021 to $930.05 billion in 2025, with national exports reaching $475.04 billion in 2025. Yet, the export contribution of domestic firms fell from 26.4 percent in 2021 down to 22.7 percent in 2025.
In 2025 alone, domestic export value dropped by 6.1 percent, whereas the foreign-invested sector grew by 26.1 percent to command a dominant 77.3 percent share of total shipments.
Citing the World Bank report Vietnam 2045: Trading Up in a Changing World, Dr. Huong noted that the proportion of domestic companies linked to global value chains dropped from approximately 35 percent in 2009 to just 18 percent in recent years.
To restore domestic industrial momentum, she proposed a comprehensive five-pillar strategy.
First, policymakers must modernize trade incentives to directly support local tier-one and tier-two suppliers rather than relying on general export volume growth.
Second, the government should establish structured linkage programs that connect foreign multinationals with domestic vendors through localized sourcing targets and joint capability building.
Third, targeted assistance should accelerate digital transformation and automation among small and medium enterprises to meet strict origin and sustainability standards.
Fourth, financial institutions need to offer specialized supply chain financing and green credit packages designed specifically for local supporting industries.
Finally, expanding advanced technical and managerial training will help domestic companies transition from basic assembly into higher-value original equipment manufacturing roles.
Mr. Nguyen Tuan Viet, General Director of VIETGO Export Promotion Co., Ltd., emphasized that Vietnam needs not only more factories but also more people who know how to sell products to the world.
He believes that if Vietnam can build tens of thousands of enterprises with international sales capabilities, the nation will not only be a good production hub but also become a skilled selling nation, helping Vietnamese enterprises be more proactive and retain more value.
Google translate