{
  "id": 5460007,
  "title": "Vietnamese firms eye higher-value global supply chain roles",
  "url": "https://urgent.news/2026/09/04/vietnamese-firms-eye-higher-value-global-supply-chain-roles",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-04T01:02:26.000Z",
  "source": {
    "name": "SGGP English Edition Business",
    "slug": "sggp-english-edition-business",
    "url": "https://en.sggp.org.vn/vietnamese-firms-eye-higher-value-global-supply-chain-roles-post129439.html"
  },
  "original_language": "en",
  "account": "Vietnamese firms are increasingly participating in global supply chains, seeking not merely to boost exports but to generate greater value domestically through enhanced processing, robust brands, and sophisticated manufacturing techniques. The nation's businesses are becoming more interconnected with global production networks, bolstering export capabilities and penetrating new markets via an extensive network of free trade agreements. However, to attain higher value creation, the focus must shift towards incorporating more value-adding stages within the production process.\n\nEconomist Norihiko Yamano of the OECD emphasizes that export turnover does not accurately represent a country's standing within global value chains. Instead, the critical metric is the proportion of value created domestically. Vietnam has established a formidable export foundation, with export turnover amounting to approximately US$476 billion in 2025 and an estimated US$374 billion in the first eight months of 2026. Nonetheless, a considerable gap remains in terms of domestic value contribution, as foreign value added accounts for about 48 percent of Vietnam's exports, exceeding the OECD average of 30.4 percent.\n\nChairman Do Ha Nam of the Vietnam Food Association highlights the challenge of creating and maintaining value along the supply chain, even in staple products like rice, which Vietnam possesses a rich variety of high-quality strains such as ST25 and Jasmine. However, the national brand's strength is not yet sufficient, leading to competition predominantly on price. Moreover, the linkage between businesses and raw-material production zones remains weak, as purchasing through multiple intermediaries raises costs and hinders the establishment of a direct link from raw-material areas to processing and trade.\n\nThe landscape of global supply chains is evolving, with major corporations reassessing their production location and partner selection criteria. This shift demands that Vietnamese businesses adapt to new requirements, as advantages derived from labor costs and processing capacity alone are insufficient for long-term competitiveness. With 17 active free trade agreements (FTAs), Vietnam is linked to markets accounting for more than 80 percent of global GDP, with ASEAN alone boasting nearly 680 million inhabitants and a GDP of nearly US$3.9 trillion. The ASEAN Digital Economy Framework Agreement is poised to further expand the region's digital economic sphere, presenting substantial market potential.\n\nVietnamese businesses must develop an internal supplier network, augment technological and service capabilities, and progressively integrate into higher-value-added stages of global supply chains. This transition necessitates businesses adopting smart manufacturing practices, leveraging digital technologies, improving supply-chain data transparency, and bolstering connectivity with partners. Additionally, sustaining consistent quality at scale is imperative.\n\nAssoc. Prof. Hoang Kim Anh of the Vietnam Association of Food Science and Technology stresses the need for businesses to progress beyond price-driven competition and focus on generating value through deep processing, particularly for natural products and those containing functional ingredients. By elevating product value, businesses can better navigate cost fluctuations and fortify their competitive edge. Devendra Jain of the World Economic Forum emphasizes that to retain a larger share of value, businesses must transcend reliance on locally sourced materials or expanded processing capacity. Embedding technology, data, and artificial intelligence directly into production and supply chain operations presents the greater potential. Integrated digital infrastructure and shared industrial intelligence platforms are emerging as the essential linkages connecting manufacturing, logistics, data, and markets, transforming data from a mere management tool into a catalyst for production optimization, demand forecasting, operational efficiency, and entry into higher-value chain segments. For Vietnam, this redefines localization, encompassing a holistic approach that extends beyond the mere presence in supply chains.",
  "summary": "Vietnamese firms are stepping up their role in global supply chains, aiming not just to expand exports but to capture more value at home through deeper processing, stronger brands, and smarter manufacturing. Vietnam’s FDI sector dominates exports amid global supply chain shifts Vietnam pivots to high-tech FDI, setting new records in capital inflow Ho Chi Minh City close to achieving 2026 FDI goal…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}