Vietnamese businesses are gradually bringing higher-quality products into global supply chains. Ensuring sustainability, however, requires closer coordination among all parties involved.

Securing raw material supply

The textile and garment sector is a typical example. With exports accounting for more than 80% of annual output and export turnover in 2025 projected at around US$46 billion, while the domestic market remains relatively small at roughly US$5-6 billion, exports are almost the only path for the industry’s growth.

As Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), noted, Vietnamese textile and garment products are now sold in about 138 countries and territories. The US, the European Union, China, Japan, ASEAN and the Republic of Korea  (RoK) are the main export markets.

Vietnam is implementing a large number of free trade agreements, creating strong investment appeal for the sector both at home and abroad.

“The root issue of the textile and garment industry is weak autonomy in domestic raw material supply, especially in fabric production, weaving and dyeing. This is a problem that enterprises, State management agencies and local authorities have yet to resolve thoroughly, while competitive pressure and importers’ standards continue to rise. To maintain and expand market share in a sustainable manner, the raw material supply challenge still requires a more fundamental solution,” Cam said.

The US has long been regarded as a key destination for many Vietnamese export sectors, particularly food products, which hold strong competitive advantages. Its large consumption capacity and strict quality requirements make it both a testing ground and an opportunity for Vietnamese products to upgrade.

Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association, said the sector has diversified export markets, but the US remains the largest, accounting for about 23% of total exports thanks to attractive profit margins.

“Even before a bilateral trade agreement was signed, Vietnam was granted most-favoured-nation status by the United States under the WTO framework, so many spice products have long enjoyed a 0% import tariff. This is an important factor helping spice exports to the US maintain positive growth,” Lien said.

Recent global changes have also created room for Vietnamese enterprises to take a more proactive and deeper role in international supply chains.

Nguyen Huu Tuan, Director of the eCommerce and Digital Technology Development Center (eComDX) under the E-commerce and Digital Economy Agency of the Ministry of Industry and Trade, said high-quality supply chains form a critical foundation linking production and consumption, and connecting domestic with international markets. This, he said, will help Vietnam shift from a “manufacturing country” to a “highly competitive manufacturing country”.

“Exporting enterprises need to strengthen connections with major global e-commerce platforms and work closely with Vietnam trade offices overseas to promote and facilitate exports. These efforts enable enterprises to make use of modern e-commerce models and help Vietnamese goods expand their presence in global supply chains,” Tuan said.

Market linkages are decisive

Amid mounting domestic and international challenges, new requirements on sustainable development, carbon reduction, green transition and trade digitalisation are becoming standard benchmarks in many markets.

Bui Quang Hung, Deputy Director of the Trade Promotion Agency under the Ministry of Industry and Trade, said Vietnamese enterprises seeking to maintain their position, expand export market share and secure a sustainable foothold in global supply chains must adapt swiftly.

“Strengthening market linkages is decisive. They tighten links across production, distribution and consumption, ensure smoother goods flows, cut intermediary costs and raise value added,” Hung said.

To enhance the ability of Vietnamese enterprises to seize opportunities in global supply chains, the Ministry of Industry and Trade said it has worked closely with other ministries, sectors, localities, international organisations and corporations such as Samsung and Toyota to support Vietnamese supporting-industry enterprises in improving capacity and strengthening supply chain connectivity.

A representative of the Industry Agency under the ministry said that alongside investment promotion, the agency will coordinate with relevant ministries and sectors to develop sector-linked industrial parks and regional industrial clusters. This is intended to attract leading enterprises, which in turn will draw supporting-industry firms, reduce production costs and strengthen business competitiveness.

The agency is accelerating the establishment of industrial development support centres in the North and the South to provide innovation and technical assistance to industrial enterprises, particularly small and medium-sized firms. It is also supporting and encouraging localities to build industrial innovation centres, thereby creating conditions for industrial development at the local level.

Raising localization rates to lift industrial competitiveness in supply chains

VOV.VN - Boosting localisation rates, accelerating technological innovation and building resilient supply chains to enhance competitiveness and make effective use of new-generation free trade agreements are key goals being pursued by Vietnamese manufacturing and export enterprises.