Big trade numbers alone no longer guarantee sustainable growth. The real challenge for Vietnam is turning strategic messages into clear, executable actions that improve value retention, resilience, and long-term competitiveness.

To address the structural limits highlighted in recent trade performance, six priority action groups stand out. Together, they form a practical roadmap for upgrading Vietnam’s trade model from expansion-driven to quality-led growth—an approach increasingly relevant for foreign investors assessing Vietnam’s next phase.

1. Redefining how success is measured

The first shift is conceptual but critical: moving away from headline trade turnover as the main success metric.

Policy and execution need to focus on:

• Value added and net economic efficiency, not gross volume

• Indicators that capture green transition, digitalization, and knowledge intensity

• Measuring how much value is retained domestically, rather than how large trade flows appear

For investors, this signals a more disciplined approach to evaluating projects based on productivity, sustainability, and long-term returns—not just scale.

2. Making domestic enterprises the real growth engine

Sustainable trade growth cannot rely indefinitely on foreign-invested firms alone. The second priority is strengthening the domestic private sector as a core pillar of exports.

This means:

• Placing domestic firms at the center of industrial and trade policy

• Supporting deeper participation in global value chains

• Using green transformation, digital tools, and skills upgrading to close capability gaps

For foreign investors, this creates opportunities for partnerships, supplier development, and ecosystem-building rather than isolated production bases.

3. Rebuilding industrial foundations through green and digital manufacturing

Vietnam’s dependence on imported inputs remains a structural weakness. The third initiative focuses on developing supporting and foundational industries aligned with sustainability and digitalization.

Key directions include:

• Energy efficiency, emissions reduction, automation, and digital production systems

• Formation of industry clusters integrating green production, digital management, and technological innovation

• Expanding domestic manufacturing capacity to reduce import reliance

This shift supports more resilient supply chains and enhances Vietnam’s attractiveness for long-term manufacturing investments.

4. Upgrading export sectors through knowledge and innovation

Future export strength will come from what Vietnam exports, not just how much.

Priority is placed on:

• Knowledge-intensive sectors with higher value retention

• Deep processing in agriculture and seafood

• Technology products and export-linked services

• Stronger investment in R&D, branding, intellectual property, and international standards

For investors, this signals growing policy alignment with innovation-led and premium-market strategies rather than cost-driven competition.

5. Modernizing trade, logistics, and supply chain infrastructure

Trade competitiveness increasingly depends on infrastructure quality. The fifth action group emphasizes green and digital modernization across logistics and trade systems.

Focus areas include:

• Digitalization and data connectivity across supply chains

• Greener logistics to reduce costs and emissions

• Greater transparency and efficiency to support global integration

This directly lowers transaction costs and improves execution reliability—two factors investors value as much as incentives.

6. Adapting early to new global trade rules

The final priority is proactive adaptation to the new rules of global trade, especially around sustainability and responsibility.

This includes readiness for:

• Carbon-related taxes and environmental standards

• Labor and responsible supply chain requirements

• Integrating green, digital, and knowledge-based criteria into FTA utilization and market expansion strategies

Rather than reacting to external pressures, this approach positions Vietnam as a compliant and forward-looking trade partner.

The core takeaway: three growth drivers as the catalyst

Across all six action groups, one theme is consistent. Trade restructuring is anchored in three catalytic growth drivers:

• Green economy to overcome environmental barriers and secure long-term market access

• Digital economy to modernize trade systems, reduce costs, and increase transparency

• Knowledge economy to shift from low-cost advantages to innovation, technology, and higher value creation

The message is clear: the six initiatives provide the action framework, but green, digital, and knowledge-based transformation will determine how deep, resilient, and competitive Vietnam’s trade growth becomes in the coming decade.

For foreign investors and global businesses, this marks a transition from volume-driven opportunity to value-driven partnership—and that is where the next wave of opportunity lies.

Source: 

Nguyễn Bích Lâm
Former Director General, General Statistics Office of Vietnam