AsemconnectVietnam - The global supply chain is undergoing a significant restructuring, opening up opportunities for Vietnamese businesses to participate more deeply in international production networks.

The global supply chain is shifting
The global supply chain is entering its most extensive restructuring phase in many years. Geopolitical fluctuations, technological competition, escalating logistics costs, and pressure to ensure energy security are forcing multinational corporations to change their production strategies, reallocate supply chains, and reduce dependence on a single market.
In this context, Vietnam is emerging as an important destination for the wave of manufacturing relocation. However, along with the opportunities come increasing pressure on technology, green standards, traceability, and the capacity of domestic businesses to genuinely participate in the global value chain.
At the seminar "Trends and Solutions to Support Businesses Participating in Global Production and Supply Chains," organized by the Center for Trade Promotion and Investment Support under the Trade Promotion Department on the afternoon of May 26th in Hanoi, Mr. Le Hoang Tai, Deputy Director of the Trade Promotion Department (Ministry of Industry and Trade), stated that the global economic and geopolitical landscape continues to undergo significant changes, leading to a faster wave of supply chain restructuring.
According to Mr. Le Hoang Tai, multinational corporations are accelerating their strategies to diversify supply sources to minimize systemic risks through various new production relocation models such as China+1, relocating production closer to consumer markets, or shifting value chains to countries with similar policies.
“In this historic wave of relocation, Vietnam has emerged as a bright spot thanks to its macroeconomic stability and extensive economic linkages, with 17 free trade agreements already signed and implemented. We are facing a great opportunity to transform ourselves from a mere processing link into a crucial production and supply center with high added value in the global network,” Mr. Le Hoang Tai emphasized.
According to the head of the Trade Promotion Department, most small and medium-sized enterprises in Vietnam still have a large gap compared to the requirements of multinational corporations in terms of capital, technology, data management, and logistics infrastructure. Without systematic solutions, domestic businesses are very easily excluded from the global value chain.
Vietnam is still mainly in the assembly stage.
Dr. Nguyen Cao Duc, Deputy Director of the Institute for European and American Studies, shared his views on the trend of restructuring global supply chains.
From an international research perspective, Dr. According to Bui Hong Son, an economic expert at the Institute for International Economic Strategy, global supply chains no longer operate according to the old logic of globalization, with all production activities gradually concentrating in China to optimize costs. After Covid-19 and the US-China tensions, major economies began restructuring their supply chains to reduce dependence and increase risk control.
“Previously, supply chains tended to concentrate heavily in China due to the advantages of cheap labor, large scale, and a complete production ecosystem. But after Covid-19, major economies realized that they could no longer allow the entire supply chain to depend on one place. Therefore, a trend is emerging to move the chain closer to or locate it in close partner countries for easier control,” Dr. Bui Hong Son analyzed.
According to Dr. Bui Hong Son, major economies now view supply chains not only from a cost perspective, but also prioritize resilience, economic security, and technological self-reliance. Sectors such as AI, semiconductor chips, robotics, aerospace, and pharmaceuticals are being strongly impacted by this trend.
In the process of global manufacturing relocation, Vietnam is becoming a destination for many Japanese, Korean, and Chinese businesses. However, according to Dr. Bui Hong Son, most of the relocation to Vietnam is still mainly in assembly or low-value segments.
“There is a wave of relocation to Vietnam, but it is mainly in the low-value segment. Vietnam has not yet escaped its role as an assembly hub. Most of the activities moving to Vietnam are still labor-intensive processes, while core technological or supply chain control stages remain overseas,” Dr. Son observed.
According to this expert, this is a major paradox in the current growth picture. Exports are increasing strongly, FDI is continuously expanding, but domestic businesses still find it very difficult to gain a foothold in high-value-added links. Much of the technology, raw materials, and supply chain control remains in the hands of foreign companies.
New supply chains are tightening business standards.
Adding to the perspective on global shift trends, Dr. Nguyen Cao Duc, Deputy Director of the Institute for European and American Studies, argues that restructuring supply chains has become a prominent trend in the world economy. Geopolitical factors, energy security, logistics costs, and the need for stable supply are directly impacting the production strategies of many international corporations.
According to Dr. Nguyen Cao Duc, geopolitical fluctuations in the Middle East, particularly maritime bottlenecks in the Strait of Hormuz, continue to demonstrate the vulnerability of global supply chains to non-economic shocks. As energy prices escalate and sea and air transport costs increase, pressure extends beyond logistics to production, trade, and the supply allocation strategies of many economies.
“Previously, businesses designed supply chains with the primary goal of maximizing profits. However, nowadays, many businesses worldwide prioritize supply chain security, digitalization, and technological autonomy. Global supply chains no longer operate purely on the logic of low cost, but instead prioritize resilience and long-term stability,” Dr. Nguyen Cao Duc observed.
According to him, the current restructuring process is also setting entirely new standards for businesses participating in global production chains. ESG, digital transformation, and traceability are gradually becoming fundamental conditions, rather than just additional criteria as before.
Dr. Nguyen Cao Duc believes that low-cost advantage is no longer sufficient for businesses to deeply participate in global value chains. To go further, Vietnamese businesses must improve their management capabilities, digital transformation, and adaptability to new international market standards.
From a market perspective, Mr. Xavier Duf, CEO of DXL Research and Consulting Company, stated that "Made in Vietnam" brands are increasingly appearing in international markets, especially in the electronics, textile, agricultural, furniture, and green packaging sectors.
"I've traveled to many countries like Mexico and European countries and seen a growing presence of Vietnamese-branded goods. Previously, consumers were familiar with 'Made in China' or 'Made in Korea,' but now 'Made in Vietnam' is becoming more prominent on the global consumer map," Mr. Xavier Duf shared.
Mr. Duf believes the playing field has changed significantly. While previously businesses could compete on low costs, now supply chain transparency, ESG compliance, and the ability to meet international standards are almost mandatory requirements for entering the US and European markets. International customers are now not only concerned with price, but also have high demands regarding ESG data, production processes, and the transparency of information from businesses.
Experts believe that the global shift in manufacturing is creating more opportunities for Vietnam to attract investment and expand exports. However, most domestic businesses are still mainly involved in simple processing, assembly, or supply stages, while higher value-added stages remain in the hands of foreign companies.
This new context also shows that the model of competition based on cheap labor is gradually revealing its limitations. International corporations are now demanding increasingly higher standards for technology, ESG, traceability, data transparency, and the synchronized participation of the local supporting industrial ecosystem. This means that the advantage of attracting FDI will be difficult to create sustainable value if domestic businesses cannot improve their production capacity, management skills, and ability to participate more deeply in the supply chains of multinational corporations.
CK
Source: VITIC/moit.gov.vn