Vietnam Pivots Trade Strategy from Export Orders to Supply Chain Strength

Vietnam's trade promotion activities are undergoing a significant shift from broad-based support to more in-depth assistance, with enhancing business competitiveness at the core. Rather than merely facilitating participation in trade fairs or business matching events, current programmes focus on brand building, market intelligence, access to new technologies, and compliance with international standards. This strategic pivot signifies Vietnam's intent to evolve its role in global supply chains from a mere "assembly hub" to a more value-added "manufacturing base." For instance, French cheese maker Bel considers Vietnam a pillar of its Asian strategy, having established a production base serving both the domestic and regional demand for over 15 years. Decathlon, with over 30 years of operations in Vietnam, is also working with local suppliers to increase product value, promote innovation, and drive sustainable development. In the agricultural sector, advances in science and technology and digital transformation are driving a shift towards modern production. In Dien Bien province, a project funded by the French Development Agency (AFD) aims to improve water resource management and efficiency, enhancing resilience to drought and floods. Vietnam has also indicated potential for deeper cooperation with BRICS countries, highlighting areas such as expanding trade and market access, promoting two-way investment, deeper engagement in global supply chains, and advancing cooperation in science-technology, innovation, and digital transformation. This reflects Vietnam's ambition to expand its influence in the global economy. Furthermore, Vietnam actively participates in the World Trade Organization's (WTO) agenda, supporting its coordinating role in promoting inclusive and balanced global trade. This demonstrates a commitment to international cooperation. Amidst concerns about economic slowdown, the Vietnamese government is focusing on attracting investment in strategic sectors like clean energy, green industry, high technology, and infrastructure. Prime Minister Le Minh Hung has called on India's ACME Group and GMR Group to expand investment and cooperation in these areas. In terms of trade, Vietnam has expanded its market access not only within ASEAN but also through Free Trade Agreements (FTAs) with entities like the European Union and the Eurasian Economic Union (EAEU). Vietnam has requested the EAEU to consider removing trade obstacles, such as the safeguard measure on Vietnamese textiles and garments, and to further open the Russian market to Vietnamese fishery products. Vietnam's trade strategy shift is part of its long-term economic development strategy aimed at upgrading its domestic industries and enhancing international competitiveness. This highlights both the opportunities and challenges Vietnam faces in its pursuit of economic growth under its one-party system and its engagement with the international community. Source: VietnamPlus English