Nearly 65% of Businesses Lack Clarity on Global Value Chains
A survey by the Vietnam Chamber of Commerce and Industry (VCCI) reveals that many Vietnamese businesses lack clear direction when it comes to participating in global value chains, with nearly 65% unprepared and only over 15% having long-term comprehensive strategies. This is a concerning figure as Vietnam’s economy deepens its integration.
Joining global value chains offers not just market expansion opportunities but also serves as a true measure of Vietnamese private enterprises’ competitive capabilities.
According to VCCI, nearly 65% of businesses lack clarity on global value chains. Illustrative image: Nhu Y. |
Concerns have been raised as many Vietnamese private enterprises remain entangled in mere processing orders, failing to ascend to higher value tiers. A key reason for this is the lack of investment in core technologies and innovation.
Mr. Nguyen Dinh Thang, Chairman of the Board of Members of Hong Co Technology Company Limited, suggests that special policies are needed to encourage the development of core technologies, especially for “make in Vietnam” products. Without state investment and support, Vietnamese technology core products will struggle to survive and thrive.
Mr. Thang recommends special policies to incentivize high-tech enterprises, and the state should act as the largest customer, proactively placing orders for domestic technology products to create a nurturing “feeding ground” for this nascent industry.
While current policies allocate a portion of GDP to science and technology, this funding has not effectively reached startups and innovative enterprises—the expected spearhead of national innovation. The reasons lie in loopholes in the grant mechanism and criteria that mismatch the agile and risky nature of entrepreneurship.
Businesses Need a New Mindset
In the global arena, Vietnamese businesses not only compete among themselves but also confront foreign enterprises that hold superior advantages in technology, capital, management, and distribution networks.
Dr. Nguyen Ba Hung, Chief Economist at the Asian Development Bank (ADB) in Vietnam, asserts that if Vietnamese businesses aim to “go global,” Vietnamese laws must also “go global” and align with international rules. Enterprises cannot play by their own rules when venturing into the world.
“When we joined the World Trade Organization (WTO) in 2007, we were anxious, but it turned out to be a period of remarkable development. Hence, embracing international laws is necessary. Vietnamese businesses are dynamic and can adapt to new environments if given sufficient time and clear direction,” assured Mr. Hung.
According to the ADB expert, the impetus for the private sector’s development lies in a clear, transparent, and fair competition-ensuring policy environment. “This requires measures against monopolies, trade fraud, and consumer protection, aspects that are still weak in Vietnam,” he pointed out.
 The electronics sector accounts for a high proportion of export turnover, but the localization rate in the industry is only 5-10%. Photo: Nhu Y. |
To make a breakthrough, enterprises need to step out of their “comfort zone” and venture into stages that bring higher value-added.
Assoc. Prof, Dr. Ta Van Loi, Principal of the School of Business, Vietnam National University of Economics, believes that Vietnamese businesses themselves need to undergo significant transformations, not just in terms of investing in modern machinery and equipment but also in management methods.
“Take the Japanese, for instance. To manufacture a product, we need to ensure that workers at each position understand and embody the spirit of creating a perfect product. While we have management and administration, our methods are fragmented, and individuals often prioritize their interests over the collective good. Consequently, large corporations from demanding countries like Japan will hesitate to involve Vietnamese businesses in their production chains,” analyzed Mr. Loi.
Along with enterprise efforts, Mr. Loi emphasizes the necessity of technology transfer agreements over a defined period and agreements to procure domestic components and accessories, enabling gradual entry into new markets.
Viet Linh
– 05:30 29/05/2025
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