Vietnamese exporters set to benefit from global supply chain changes

Vietnamese exporters set to benefit from global supply chain changes

Việt Nam is well positioned to take advantage of the ongoing shifts in global supply chains, with strong export growth expected this year, a senior executive of a Hong Kong corporation said.

Carol Lau, senior vice president of Global Sources, speaks on the sidelines of the Global Sourcing Fair Vietnam in HCM City. — VNS Photo Bồ Xuân Hiệp

Speaking on the sidelines of the Global Sourcing Fair Vietnam in HCM City last week, Carol Lau, senior vice president of Global Sources, told Việt Nam News: “As the world re-evaluates its supply chain strategies, Việt Nam is emerging as an essential player.”

She noted a remarkable 25.7 per cent year-on-year increase in Vietnamese exports in February, amounting to US$31.11 billion.

“Key sectors such as electronics, textiles, garments, and footwear are showing outstanding performance,” Lau said.

Amid ongoing trade tensions globally, the country has become a go-to destination for multinational companies looking to reduce risks associated with low-end manufacturing.

Vietnamese exporters have built a strong foothold in labour-intensive industries, particularly textiles and electronics assembly.

Lau noted a shift in international buyers’ interests, moving from traditional textiles and footwear to emerging sectors like electronics, machinery, and equipment.

In addition, products in food, sports and outdoor goods, and household appliances are gaining traction among global buyers.

However, despite these promising developments, Vietnamese exporters face significant challenges, according to Lau. Issues surrounding technical dependence, compliance issues, and market concentration persist.

The current “semi-finished processing” model, while making it easier to enter the market, limits Việt Nam’s position to lower tiers of the global value chain and hampers technological independence.

As the EU and the US tighten their standards for green practices and carbon footprint certifications, Vietnamese exporters are feeling the pressure to comply.

While some companies are upgrading their automation processes, there is a pressing need for a faster transformation to meet these new standards.

In addition, around 30 per cent of Vietnamese exports are directed to the US market, creating a vulnerability to shifts in US policy and market conditions.

Exporters are recommended to enhance partnerships to improve technological capabilities and foster innovation, expand into new markets to reduce dependency on the US to mitigate associated risks, and accelerate efforts to meet sustainability standards while improving compliance with international regulations.

By adopting these strategies, Việt Nam has the potential to evolve from merely serving as a “processing base” to becoming a “value-chain hub,” according to Lau.

O2O marketing strategy 

Carol Lau, senior vice president of Global Sources, speaks on the sidelines of the Global Sourcing Fair Vietnam in HCM City. — VNS Photo Bồ Xuân Hiệp

Vietnamese exporters are advised to implement the Online-to-Offline (O2O) marketing strategy, ensuring consistency in brand voice and product information across online and offline platforms, such as trade shows, to attract a wider international buyer base.

Investments in training and technology are essential, equipping teams with the necessary skills and tools to effectively manage O2O strategies, according to Lau.

Leveraging technology for data analysis, customer relationship management, and marketing automation will enhance operational efficiency and decision-making, fostering greater responsiveness in the market.

Recent surveys by Global Sources, a global multichannel O2O sourcing platform, showed that inquiries from international buyers regarding Vietnamese products surged from January to March compared to the same period last year.

Notable increases included 60 per cent from the rest of Asia, 39 per cent from Latin America, and 22 per cent from Eastern Europe, indicating a high level of global interest in Việt Nam’s sourcing opportunities.

The exhibition, co-organised by Global Sources and VINEXAD, featured over 400 verified exhibitors from Việt Nam and Asia, showcasing 30,000 export-ready products across various categories.

The event attracted more than 10,000 buyers and sourcing agents from key markets, including the US, Canada, and several European and Asian nations. 

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