Vietnam’s export engine continues to fire on all cylinders as the country transitions from low-cost assembly to high-value manufacturing.
With supply chains shifting across Asia, Vietnam’s ability to attract investment and boost productivity is central to its long-term competitiveness.
A Dynamic Export Portfolio
Data from the General Statistics Office (GSO) shows that Vietnam’s export revenue reached US$404 billion in 2024, up 13 percent year-on-year. Electronics, machinery, textiles, and agricultural products remain the pillars of foreign trade, but higher-value goods are expanding rapidly.
The electronics sector, led by Samsung Vietnam, Foxconn, and LG Display, now accounts for more than 34 percent of total exports. Shipments of computers and components rose 16 percent in 2024, supported by new manufacturing facilities in Bac Ninh and Thai Nguyen.
“Vietnam’s export structure is evolving. We’re seeing a clear shift toward more technologically sophisticated production,” said Dr. Nguyen Bich Lam, former head of the GSO.
The Next Phase of Manufacturing Growth
Vietnam’s low labour costs once served as its primary competitive advantage, but wage pressures and global competition have pushed the country to climb the value chain.
The government’s Strategy for Sustainable Industrial Development 2025–2035 emphasises automation, digital transformation, and green manufacturing. Industrial parks in Hai Phong, Da Nang, and Binh Duong are adopting renewable energy systems and smart factory technologies.
The Ministry of Industry and Trade (MOIT) is working with Japanese and South Korean partners to upgrade supporting industries, enabling local firms to supply higher-value components to global manufacturers.
Strategic Trade Agreements Enhance Market Access
Vietnam’s extensive network of trade agreements continues to bolster its export competitiveness. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU–Vietnam Free Trade Agreement (EVFTA) have opened access to high-income markets with lower tariffs and streamlined customs procedures.
Exports to the EU grew 18 percent in 2024, particularly in electronics, furniture, and processed foods. Under EVFTA’s rules of origin, local producers are increasing the use of domestic and ASEAN-sourced materials to meet compliance requirements.
Vietnam’s participation in the Regional Comprehensive Economic Partnership (RCEP) has strengthened its role within regional supply chains, linking the country more closely with China, Japan, and South Korea.
Infrastructure and Logistics Upgrades
Improving logistics remains a national priority. Vietnam has committed US$65 billion in infrastructure investment through 2030, including deep-water ports, expressways, and cargo rail networks.
The Long Thanh International Airport project, near Ho Chi Minh City, is expected to boost air freight capacity significantly once Phase 1 is completed in 2026.
Meanwhile, port expansions in Hai Phong and Cai Mep–Thi Vai are reducing congestion and attracting more direct shipping routes from Europe and the United States.
Human Capital and Productivity Gains
The government is investing in technical education to raise productivity. More than 2.2 million workers have undergone vocational upskilling since 2022 under the National Workforce Development Programme.
Universities and training centres are partnering with multinationals to align skills with market needs, particularly in electronics engineering, automation, and quality management.
“Productivity is the new backbone of competitiveness,” noted Dr. Nguyen Thi Lan. “Vietnam’s ability to sustain export growth depends on its workforce’s capacity to adapt to advanced manufacturing.”
The Road Ahead
Vietnam’s export resilience remains one of the strongest in Asia. The combination of diversified markets, policy consistency, and strategic investment has strengthened its position as a manufacturing and logistics hub.
As global supply chains continue to evolve, Vietnam’s shift toward higher-value production is setting the foundation for long-term competitiveness — ensuring the country remains a pivotal player in Asia’s trade landscape.
