Expanding and diversifying markets has emerged as a top priority for Vietnam, especially in the context of its evolving economic landscape. The country is strategically leveraging new-generation free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European Union-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP). These agreements are pivotal in intensifying Vietnam’s trade promotion efforts in emerging regions, including the Middle East, Africa, and South Asia.
At a recent meeting with industry associations, Minister of Industry and Trade Nguyen Hong Dien emphasized the necessity for these organizations and business groups to devise trade promotion plans that are aligned with current market realities and the capacities of their respective corporations. He highlighted the importance of targeting markets where FTAs have proven effective while also encouraging a bold expansion into potential areas in Eastern Europe, Africa, and South Asia. “Diversifying markets not only reduces reliance on traditional partners but also heightens resilience,” said Dien, underlining the need for continuous market monitoring. He called for regular sharing of updates regarding trade policies, tariffs, and technical standards in key FTA markets to aid in proactive decision-making for production and business activities.
Vietnam’s export growth is spearheaded by several key sectors, including electronics, agriculture, textiles, fisheries, and footwear. These sectors are seen as essential to boosting export revenues. Attracting high-quality Foreign Direct Investment (FDI) and integrating more deeply into global supply chains—particularly in fast-evolving areas like semiconductors, artificial intelligence, and renewable energy—has become a key agenda for the Vietnamese government. It’s crucial for the country to transition towards clean, energy-efficient production methods and to enhance localization rates in order to navigate increasingly stringent technical barriers, particularly in markets like the EU and the US.
Phan Thanh Xuan, Vice President of the Vietnam Leather, Footwear and Handbag Association, points out that Vietnam boasts 17 FTAs, providing a robust foundation for market diversification. However, he warns of challenges, particularly in optimizing costs as new markets can pose unique obstacles. “For businesses to thrive, embracing technology strategies to diversify product ranges is essential. This approach not only eases market access but also enhances consumer engagement,” Xuan commented, stressing the need for innovation and adaptability.
Enterprises are the heartbeat of Vietnam’s export strategy. Accelerating digital adoption and cross-border e-commerce is viewed as vital for market expansion. Compliance with sustainability and green standards is increasingly recognized as crucial; sustainable certifications are now seen as “passports” for Vietnamese goods entering demanding international markets. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), highlighted that as non-tariff barriers become more prevalent, businesses must invest in green and digital transformations. This includes raising localization rates to diminish import dependency and adhering to rules of origin and traceability.
The role of government policies in this strategy cannot be overstated. Beyond negotiating the removal of trade barriers and managing trade defense cases to protect business interests, the government is also pioneering digital trade promotion initiatives and developing a national-branded international e-commerce platform. This multifaceted approach is designed to bolster Vietnam’s global trade presence.
Do Ngoc Hung, Vietnam’s Trade Counselor in the US, confirmed that trade promotion activities continue to be driven by participating in fairs and exhibitions aimed at showcasing Vietnamese products and unearthing new export opportunities. Strengthening early-warning systems related to trade defense cases is another step to avoid passivity and enhance outcomes in future disputes, he said, underscoring a proactive stance.
With positive outcomes so far in the current year and well-defined strategies in place, Vietnam is on track to achieve its ambitious goal of a 12% export growth target by 2025. Realizing this objective will further establish Vietnam’s position among the world’s top 20 trading economies.