Vietnam’s international integration journey must now include local companies making their mark in overseas markets.

After nearly 40 years of carrying out the “Doi Moi” (Economic Renewal)
process, Vietnam now ranks among the world’s ten most open economies, is one of
the Top 20 exporters, and has emerged as a key industrial and manufacturing hub
in Asia. In its journey of global integration, expanding the presence of Vietnamese
private enterprises abroad and strengthening their participation in global value
chains is no longer a choice but a strategic imperative, one that requires a fundamental
shift in how it approaches international economic engagement.

Uneven gains

Despite many gains from global integration, Vietnam’s “Go Global” journey still
faces significant challenges, according to the Ministry of Industry and Trade (MoIT).
Export growth continues to be led largely by foreign-invested enterprises (FIEs),
while the contribution of domestic companies remains modest. Though Vietnamese investment
abroad began in the early 2000s, it is still limited in both scope and scale. Notably,
Vietnam has yet to develop major corporations or business groups with global operations
and internationally-recognized brands.

The textile and garment sector illustrates this imbalance. At the Trade Promotion
Conference with Vietnam’s overseas trade offices in October, organized by the MoIT,
Mr. Truong Van Cam, Vice Chairman and General Secretary of the Vietnam Textile and
Apparel Association (VITAS), said the industry has grown impressively, from $1.96
billion in exports in 2001 to $46-46.5 billion today, for a 23.5-fold increase.
Yet FIEs still account for about 60 per cent of total exports and 56.8 per cent
of employment.

He added that in the footwear industry, FIEs contribute around 80 per cent
with local companies making up only 20 per cent. In electronics, more than 90 per
cent is dominated by FIEs, while domestic enterprises account for less than 10 per
cent.

In the manufacturing industry, Mr. Pham Hai Phong, Vice Chairman of the Vietnam
Association for Supporting Industries (VASI), observed that final production and
assembly still depend heavily on FIEs, with only a few local assemblers starting
to enter supply chains. While Vietnamese support industry enterprises have joined
most parts of the manufacturing value chain, their participation is concentrated
in mid-stage component production. In essence, domestic enterprises can produce
essential parts but have yet to master the more complex, high-value stages.

Moving up the global value chain

To truly compete on the global stage, Mr. Phong stressed that Vietnam’s support
industries must move up the value chain into product assembly and final manufacturing
by participating in OEM (original equipment manufacturing), ODM (original design
manufacturing), and OBM (original brand manufacturing) models. This, he said, would
mark a turning point for Vietnam to move beyond its traditional outsourcing role.

“We need to take ownership of research and development (RD) and the production
of basic materials domestically, to raise localization rates and reduce dependence
on foreign suppliers,” Mr. Phong emphasized. He also called on the MoIT to develop
a strategy to support leading companies capable of investing abroad. When a “locomotive”
enterprise goes first, it can bring along an ecosystem of Vietnamese support industry
companies to provide components and services directly in foreign markets, giving
smaller players access to stable outlets, reducing risks, and exposing them to global
standards in technology and management.

With experience in international expansion since its founding in 2009, Mr.
Nguyen Minh Tu, Vice Chairman of the Stavian Group, proposed several fundamental
solutions. These include focusing on large, globally-competitive sectors such as
textiles, automobiles, industrial metals, and packaging; identifying experienced
industry leaders to spearhead and rally other Vietnamese companies; establishing
a national-level market research body and overseas trade offices (VietCham); creating
professional overseas investment and export support funds; and promoting cross-border
trade models.

Mr. Bok Dug Gyou, Head of the Korea Desk at the Vietnam Trade Promotion Agency
(Vietrade) and Deputy Director of the Korea Trade-Investment Promotion Agency (KOTRA)
in Hanoi shared lessons from South Korea’s globalization journey that likened the
international market to “tuna in open waters” – joining it compels Vietnamese companies
to learn, adapt, and apply global technologies and standards. He urged stronger
participation in international trade fairs to accelerate this process.

He also emphasized the importance of financial policy support. With KOTRA’s
annual budget of $500 million and its 129 global offices as an example, he suggested
that Vietnam prioritize financial policies for globalization as a form of strategic
investment. He also called for closer collaboration between businesses, government,
and universities to develop a globally-skilled and competitive workforce.

Strategic imperative

Amid global economic volatility and intensifying competition, expanding into
international markets has become a vital path for Vietnamese enterprises to survive
and grow. To support this ambition, the MoIT is developing the “Go Global Program
for 2026-2035” as part of the implementation of Politburo Resolution No. 68-NQ/TW
on private sector development. The program is expected to be submitted to the Prime
Minister for approval before year’s end.

“Go Global” is envisioned as a comprehensive global integration strategy, covering
trade, investment, technology, culture, diplomacy, and education. Its goal is to
help Vietnamese private enterprises expand overseas in a more substantive and integrated
way, deepen their participation in global value chains, and strengthen the international
presence of Vietnam’s brands, products, and services.

By 2030, the program aims for Vietnam to have around 20 major enterprises leading
global value chains and 30 mid-sized firms operating in niche markets, while increasing
the share of export value added from the private sector to 55-60 per cent.

Mr. Vu Ba Phu, Director General of Vietrade, emphasized that the “Go Global”
strategy cannot be a mere administrative plan, it must represent a “revolution in
mindset” for both the government and businesses. “Support should be seen as investment,
and enterprises must be empowered to take the initiative in going global,” he said.

By addressing bottlenecks in capital flows, investing in RD, and learning
from successful international models such as South Korea’s Export Voucher program,
Vietnamese enterprises can build the strength needed to move from a “manufacturing
base” to a “branding powerhouse” on the global economic map.

Vietnamese goods are already exported to more than 200 markets, which is a
success in itself. Yet Mr. Tran Thanh Hai, Deputy Director General of the Import-Export
Department at the MoIT, acknowledged that the actual presence of Vietnamese enterprises
abroad remains limited, in stark contrast to the strong influx of FDI companies
doing business in Vietnam.

“Now is the right time to talk about ‘Go Global’, as Vietnamese enterprises
have built considerable capacity,” Mr. Hai said, adding that companies do not need
to wait until they become large corporations to expand internationally. Today, this
effort should be regarded as a shared mission between businesses, associations,
and the government.

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