Businesses Need to Reposition Strategies for Sustainable Growth in Vietnam

As the global economy faces significant fluctuations—accentuated by US reciprocal tax policies, supply chain disruptions, and rising protectionism—Vietnamese businesses are urged to swiftly adapt and reposition their strategies to ensure sustainable growth and market expansion.

Expanding Market Reach Amid Global Challenges

Cao Thi Phi Van, Deputy Director of the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC), highlights Vietnam’s strategic focus on tapping into the domestic market while diversifying export destinations. Leveraging 17 free trade agreements with more than 60 economies worldwide, enterprises are enhancing trade promotion activities and improving product quality to better compete globally.

Rising Competitiveness in Key Industries

According to Professor Tran Ngoc Anh (Indiana University, US), Vietnam has become an attractive hub for production and exports, with rapid growth in US imports of Vietnamese goods—particularly in the wood industry, textiles, and semiconductors. Despite ongoing trade tensions, Vietnam maintains tariff advantages over many countries, reinforcing its export potential.

Embracing Innovation and Digital Transformation

A major challenge is the significant digital skills gap, with 44% of workers lacking basic proficiency and 37% only minimally competent, reports Duong Hong Loan, Director of the Institute for Vietnam Initiatives. Over 60% of enterprises face hurdles in digital transformation, especially in cybersecurity and automation.

Experts recommend a strategic framework to strengthen digital capabilities by:

• Developing digital competency frameworks
• Designing tailored learning roadmaps for employee groups
• Cultivating corporate learning cultures
• Providing specialized technology training

Strategic Directions for Sustainable Development

Vietnamese enterprises are encouraged to adopt three main strategies:

1. Compliance and Transparency: Ensure stringent documentation, transparent country-of-origin labelling, and timely adoption of US and EU standards.
2. Value Chain Upgrading: Transition from Original Equipment Manufacturing (OEM) to Original Brand Manufacturing (OBM), focusing on brand development and value addition.
3. International Cooperation: Increase engagement with global trade associations to diversify export markets and reinforce supply chains.

Simultaneously, developing a robust national and sectoral branding strategy is critical to elevate Vietnam’s image from a low-cost manufacturer to a reliable supplier of high-value products. This aligns with increasing global requirements for traceability and reliability amid tariff and compliance pressures.

Conclusion

Vietnam stands at a pivotal moment where challenges induced by economic volatility double as opportunities for advancement. A combined approach—fostering innovation, digital transformation, market diversification, and branding—alongside government support will enable Vietnamese businesses to thrive sustainably in a competitive global economy.

Source: Nhan Dan Online, October 28, 2025
Keywords: Vietnam business strategies, sustainable growth, digital transformation, export market diversification, free trade agreements, brand development

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