Focusing on Products to Create Sustainable Competitive Advantages: Insights from Vietnam’s Science and Technology Minister

Overview

Minister Nguyen Manh Hung of Vietnam’s Ministry of Science and Technology recently emphasized the critical importance of product-focused strategies for Vietnamese enterprises aiming to achieve sustainable competitive advantages. Speaking during a dialogue with leaders of CMC Technology Group, the Minister highlighted the interplay between corporate strategic thinking and national development goals, encouraging businesses to innovate rather than imitate and to master the entire product value chain.

Core Message: Products as the Basis of Competitiveness

Minister Nguyen stressed that the ultimate driver of competitiveness is the product itself. He pointed out a common pitfall among domestic firms: investing in research but faltering at commercialization. For lasting success, companies must:

• Deliver tangible value through products that meet market needs.
• Own the full chain from design, integration, production, marketing, to after-sales service.
• Avoid replicating models of large corporations and instead pave unique paths aligned with Vietnam’s broader national ambitions, including becoming a high-income country by 2045 through advancements in digital infrastructure, urban innovation, and public service efficiency.

Strategic Focus: Specialization Over “All-in-One” Solutions

Regarding emerging fields such as artificial intelligence (AI) and the C-OpenAI ecosystem developed by CMC, the Minister advised avoiding the pursuit of broad “all-in-one” platforms. Instead, enterprises should:

• Identify specific market segments or problems where they can create clear differentiation.
• Prioritize product development over technology hype, as markets ultimately value usable, effective products.

Long-Term Advantage Beyond Outsourcing

While outsourcing remains a revenue source, Minister Nguyen cautioned that it cannot underpin a strategic global expansion. He acknowledged CMC Global’s shift toward becoming an Artificial Intelligence eXperience (AIX) service provider as a positive step, but stressed the need for unwavering commitment to this strategic transformation.

On the choice between AI and semiconductors for breakthrough innovation, the Minister argued that determination and execution are more critical than sector selection. For a company like CMC:

• AI represents a natural area to invest in with a targeted strategy around data, product, and market.
• The semiconductor sector offers focused entry points such as chip design, IP development, testing, and IoT chips, avoiding expensive mega-projects.

Additionally, AI and semiconductors are interdependent industries, offering reinforcing opportunities.

Culture and Discipline: Foundations for Innovation and Longevity

Minister Nguyen Manh Hung also underscored the importance of cultivating a disciplined yet creative organizational culture. He clarified that discipline enables creativity to flourish safely and rapidly. Vital elements for enterprise durability include:

• A spirit of continuous learning.
• Constructive internal debate, or seeking external discourse if internal debate is lacking.

Implications for Sustainable Business Development in Vietnam

Vietnamese enterprises aspiring to global competitiveness and sustainability must prioritize:

• Transforming technology investments into market-ready products.
• Defining clear, focused innovation goals aligned with national development strategies.
• Building disciplined, dynamic corporate cultures supporting innovation and adaptability.
• Committing fully to chosen strategic paths in emerging technologies such as AI and semiconductors.

This approach not only supports individual business success but advances Vietnam’s national goals of technological autonomy, digital infrastructure development, and integrated innovation ecosystems by 2045. —

Source: Nhan Dan Online, “Focusing on products to create sustainable competitive advantages,” November 29, 2025
Photo credit: NDO
Editor: Quang Huy, translated by NDO

For more on Vietnam’s technology and innovation landscape, explore related coverage on digital infrastructure breakthroughs and technology autonomy initiatives.

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