Investments

“Vietnamese Exports: Seeking New Launchpads for Global Reach”

To sustain the momentum of robust export growth, industries are striving to diversify their markets and reduce reliance on major partners. They are also navigating the dynamic landscape of international trade policies and forging new paths to ensure long-term success.

Administrator

13 September, 2025

176

(Photo: PV/Vietnam+)

Amid a turbulent global economic landscape, Vietnam’s exports continue to make a strong impression, registering nearly
US$305 billion in the first eight months of 2025, marking a 14.4% increase from the same period last year.

However, amidst risks stemming from international trade policies and geopolitical shifts, industry associations, alongside the Ministry of Industry and Trade, have devised breakthrough strategies to diversify markets, reduce reliance on major partners, and ensure sustainable growth.

Escaping the “Dependency Trap”

As the leading export sector, electronics achieved a remarkable US$100 billion in the past eight months, reflecting a 25% increase year-on-year and accounting for over 30% of the country’s total exports.

Ms. Do Thi Thu Huong, representing the Vietnam Electronics Enterprise Association, emphasized their efforts: “We are vigorously expanding into India, Singapore, and other Southeast Asian nations. India is deemed a potential market with less competition from China and could serve as a new springboard for Vietnamese electronics businesses.”

As of August 2025, the textile industry recorded US$30.8 billion in export turnover, a 7% increase from the previous year, with a trade surplus of US$14 billion. Notably, European markets such as Germany, the Netherlands, and Spain witnessed impressive growth rates of 20.9%, 12.2%%, and 10.4%%, respectively.

Mr. Truong Van Cam, Vice President of the Vietnam Textile and Apparel Association (VITAS), proposed a fundamental solution: “We recommend that the Ministry of Industry and Trade consider establishing a centralized supply center for raw and auxiliary materials for the textile, footwear, and wood industries to reduce import reliance and enhance product value.”

Meanwhile, the wood industry attained US$11.2 billion in export turnover in the first eight months, a 7% increase from the previous year. However, the industry faces the challenge of concentrating 90% of its turnover on five key markets. Mr. Ngo Sy Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association, shared, “The US remains our largest market, accounting for 56% of total turnover. But we cannot depend on a handful of markets indefinitely.”

To break free from this “dependency trap,” the wood industry is implementing a strategy to “refresh its approach to traditional markets” while expanding into niche markets such as Spain and the Netherlands. Notably, many businesses have transitioned from a processing model to building their brands, designing exclusive products, and targeting high-end furniture and living spaces.

Electronic Component Manufacturing. (Source: VNA)

The association also proposed eliminating the 25% export tax on sawn timber of imported origin. Mr. Hoai explained, “This would encourage businesses to import roundwood from the US, process it in Vietnam, and export it to China, thereby creating local jobs and strengthening trade relations with the US.”

Diversification and Supporting Industry Development: The Sustainable Path

The associations unanimously agreed that market diversification and supporting industry development are the way forward. Domestic production of raw materials, fabrics, components, and materials needs substantial investment. Simultaneously, leveraging information from Vietnam’s trade offices abroad is crucial to staying abreast of new trends and regulations, especially the EU’s sustainability laws. Organizing international trade fairs and business matching events also enables enterprises to promote their products and seek partners.

Turning Challenges into Opportunities for Vietnamese Products to Reach Global Markets

Given the intertwined challenges and opportunities, Minister of Industry and Trade Nguyen Hong Dien provided decisive directions at the August 2025 Trade Promotion Conference with Vietnam’s Trade Offices Abroad. He emphasized the vital role of industry associations as crucial “bridges” in promoting Vietnamese products globally.

With a 12% export growth target for 2025, the Minister suggested several key solutions to support businesses and associations in boosting exports in the coming months.

Minister Dien highlighted the need for associations to devise trade promotion plans that align with businesses’ capabilities, prioritizing FTA markets and expanding into potential regions like Eastern Europe, Africa, and South Asia.

He stressed the importance of regularly monitoring and sharing market information, trade policies, tariffs, and technical standards in key markets to enable businesses to adjust their strategies promptly.

Additionally, the Minister requested units to enhance their capacity for early warning of international trade risks, ranging from policy changes to technical barriers, to better prepare businesses for trade remedies.

Minister of Industry and Trade Nguyen Hong Dien chairs the Trade Promotion Conference for the first eight months of 2025. (Photo: PV/Vietnam+)

Regarding the associations, Mr. Dien noted their crucial role in connecting businesses with trade offices, diplomatic agencies, and international distribution partners. He also emphasized the timely reflection of challenges faced by small and medium-sized enterprises to facilitate problem-solving.

“The Ministry of Industry and Trade will support businesses in building brands, designing packaging, and creating product models that cater to the tastes of different markets, thereby enhancing the image of Vietnamese goods,” the Minister shared. “We will also collaborate with media and trade offices to encourage businesses to participate in trade promotion programs within the FTA framework, taking advantage of tariff preferences.”

Mr. Dien further emphasized connecting businesses with research institutes and innovation entities, particularly in production technology and cross-border e-commerce, to improve productivity and value addition.

To attain the 12% export growth target, the last four months of the year must achieve a minimum of US$150 billion, equivalent to over US$37.5 billion per month. This daunting task demands the determination and coordinated efforts of the entire political system, businesses, and associations.

Therefore, the leadership of the Ministry of Industry and Trade calls upon trade offices, ministries, localities, and businesses to join hands in effectively implementing these solutions, turning challenges into opportunities to propel Vietnamese products further onto the global trade map.

Hong Kieu

– 11:13 10/09/2025