GROUP 3

No Name Student ID Task

- Lead the team
1 Trịnh Huyền Nhung 22051173 - Assign tasks
- Gathering information and data
2 Phạm Yến Chi 22050979 - Gathering information and data
- Design the PPT
3 Nguyễn Hương Ly 22051118
- Present
4 Đinh Bảo Thái 22051205 - Gathering information and data
- Design the PPT
5 Nguyễn Thị Ngọc Anh 22050953
- Present
- Design the PPT
6 Nguyễn Thanh Lâm 22051078
- Present
Topic: Vietnam's recent trade patterns and the threat of international
processing trap.

I. Introduction

1. Background on Vietnam’s Trade Growth

Over the past two decades, Vietnam has transformed into a significant player in
global trade, driven by strategic reforms, robust foreign direct investment (FDI), and
deep integration into global supply chains.

Vietnam's Increasing Role in Global Trade:

Since initiating economic reforms known as "Đổi Mới" in the late 1980s,
Vietnam has transitioned from a centrally planned economy to a socialist-oriented
market economy. This shift facilitated rapid integration into the global economy,
marked by:

● Trade Liberalization: Vietnam's accession to the World Trade Organization

(WTO) in 2007 and participation in various free trade agreements (FTAs) have
reduced trade barriers, enhancing export competitiveness.

● Diversified Export Portfolio: The country has expanded its export base
beyond traditional agricultural products to include electronics, textiles, and
machinery, reflecting a more diversified and resilient trade structure.

Strong Export Performance Driven by FDI and Integration into Global Supply
Chains:

FDI has been pivotal in Vietnam's economic ascent:

● FDI Inflows: The government’s pro-investment policies have attracted

multinational corporations, leading to cumulative FDI commitments reaching
significant levels by 2023.

● Manufacturing Hub: Companies like Samsung have established substantial

operations in Vietnam. Samsung, for instance, contributed over $65 billion to
Vietnam's export revenue in 2022 alone, accounting for a significant portion of
the country's total exports.

● Global Supply Chains: Vietnam's strategic location and competitive labor

costs have integrated it into global manufacturing networks, particularly in
 electronics and apparel, making it a crucial link in regional and global supply
chains.

The Rise of Vietnam as a Key Manufacturing Hub in Asia:

Several factors have cemented Vietnam's status as a manufacturing powerhouse:

● Strategic Location: Proximity to major markets like China and access to key
maritime routes have enhanced its logistical appeal.

● Labor Force: A young, increasingly skilled workforce has attracted industries

seeking efficient production bases.

● Infrastructure Development: Investments in ports, roads, and industrial zones

have supported industrial activities and export growth.

2. Purpose of the Report

● Analyze Vietnam’s trade performance from 2020 to 2024.
● Discuss the challenges posed by the international processing trap.
● Provide strategies for sustainable economic growth and trade expansion.
II. Vietnam’s Recent Trade Patterns

2.1 Overview of Vietnam’s recent trade patterns

Vietnam consistently achieved strong trade growth during this period, with
both exports and imports increasing steadily. The country’s total trade turnover
surged from $545.36 billion in 2020 to $786.29 billion in 2024, reflecting a
significant expansion in economic activities.

Source: International Monetary Fund (IMF) and Vietnam General Statistics Office

Detailed Analysis

● 2020: The COVID-19 pandemic severely impacted the global economy.

Although Vietnam effectively controlled the outbreak, GDP growth was only
2.9%, the lowest in many years. Both exports and imports declined, but the
country still maintained a trade surplus of $20 billion.

● 2021: The economy continued to be affected by the pandemic, with GDP

growth at 2.6%. However, exports rose to $336.3 billion, mainly due to the
recovery of manufacturing sectors and global demand.

● 2022: The economy rebounded strongly with GDP growth reaching 8.0%.
Both exports and imports increased significantly, reflecting the restoration of
supply chains and consumer demand.

● 2023: GDP growth was 5.1%, lower than the previous year but still relatively
high. The trade surplus grew to $21.1 billion, indicating improvements in
Vietnam's trade balance.
● In 2024, Vietnam's Gross Domestic Product (GDP) grew by 7.09%, up from
5.05% in 2023, reaching approximately $476.3 billion. This growth was driven
 by robust export performance and substantial foreign investment inflows.

2.2. Export Trends

In 2024, Vietnam's export sector demonstrated remarkable growth, achieving a

total export turnover of 405.53 billion USD, a significant increase of 14.3% compared
to 357.1 billion USD in 2023. This positive performance occurred despite a
challenging global economic landscape marked by risks and uncertainties, including
geopolitical tensions and fluctuating demand. The growth underscores Vietnam's
resilience and its growing role as a key player in global trade, driven by strategic trade
policies, foreign investment, and a competitive manufacturing base.

The export growth in 2024 was driven by contributions from both the domestic
and foreign-invested sectors:

● Domestic Economic Sector: Exports reached 114.59 billion USD, marking an

impressive growth of 19.8% compared to 2023. This sector accounted for
28.3% of the total export turnover, reflecting the increasing capability of local
enterprises to compete in international markets.
● Foreign-Invested Sector (including in crude oil): This sector, which includes
major multinational corporations, recorded exports of 290.94 billion USD, up
12.3% from the previous year. It contributed 71.7% to the total export turnover,
highlighting the pivotal role of foreign direct investment (FDI) in Vietnam’s
export economy.

Vietnam’s exports in 2024 were primarily driven by strong demand from major
markets such as the United States, China, Japan, Hong Kong, and Germany. The
United States remained the largest market, with exports reaching approximately 136.6
billion USD, a 19.3% increase from 118 billion USD in 2023. Other significant
markets included China (estimated at 97.2 billion USD), Japan (28.5 billion USD),
Hong Kong (19.4 billion USD), and Germany (16.0 billion USD), based on estimates
derived from 2023 data.

In 2024, Vietnam had 37 export items earning over 1 billion USD, making up
94.3% of total exports. Among them, 8 items surpassed 10 billion USD, accounting
for 69.0%. Key exports like electronics, computers and components; phones;
machinery and equipment; textiles; footwear; and wood products continued to lead.

Electronics, computers, and components remained the top export sector, thanks
to major tech companies like Samsung, LG, and Apple, along with local electronics
manufacturers. This category brought in 72.6 billion USD, a 26.6% increase from
2023, and made up 17.9% of total exports. Phones and components came second with
53.9 billion USD (+2.9%), followed by machinery and equipment at 52.3 billion USD
(+21%), textiles at 37 billion USD (+11.2%), footwear at 22.9 billion USD (+13%),
wood products at 16.3 billion USD (+20.9%), vehicles and spare parts at 15.1 billion
USD (+6.4%), and seafood at 10 billion USD (+11.9%).

Vietnam also saw strong growth in agricultural exports, especially rice, coffee,
cashew nuts, and fruits. Vietnamese rice outperformed competitors like Thailand and
India, securing major export deals, particularly in Asia and Africa. Meanwhile, fruits
like jackfruit, dragon fruit, and mango gained access to demanding markets such as
the U.S., EU, and Japan, showing improvements in quality and standards. Agricultural
exports remained an important part of Vietnam’s trade, with key buyers including
China, the U.S., the EU, and Japan.

2.3. Import Trends

Vietnam's total imports increased significantly, from $253.07 billion in 2019 to

approximately $380.76 billion in 2024, reflecting a consistent upward trend. The
country has expanded its import sources beyond traditional partners like China, South
Korea, and Japan, seeking alternatives in the U.S., Europe, and ASEAN. Vietnam has
increased imports of coal, liquefied natural gas (LNG), and petroleum to meet
growing energy demands. The textile and footwear industries also rely heavily on
imported raw materials.

For the entire year of 2024, Vietnam's total import turnover of goods reached
380.76 billion USD, marking a 16.7% increase compared to the previous year. Of
this, the domestic economic sector recorded 140.11 billion USD, up 19.5%, while the
foreign-invested sector accounted for 240.65 billion USD, up 15.1%.

In 2024, 46 imported items to Vietnam exceeded a value of over US$1 billion,

representing 93.1 percent of the total import turnover. Among these, six items
surpassed US$10 billion, accounting for 54.0 percent of the total.

The majority of these imports were driven by Vietnam’s demand for raw
materials and equipment essential for industrial production. The country sourced a
significant amount of production materials from foreign suppliers, including steel,
crude oil, and chemicals, as well as industrial machinery and equipment for the
manufacturing, electronics, and automotive sectors.

Notably, there was a significant increase in imports of medical supplies and

electronic components, reflecting the strong development of the domestic medical and
technology industries.
According to the GSO, the structure of Vietnam imported goods in 2024 is
broken down as follows:

- Consumer goods

These goods’ value stood at US$24.33 billion, accounting for 6.4 percent of the total
imports.

- Production materials

The category of production materials amounted to US$356.43 billion,

accounting for 93.6 percent of total imports. Of these:

- Machinery, equipment, tools, and spare parts represent 47.4 percent of the
total imports
- Raw materials, fuels, and materials comprise 46.2 percent of the total
imports.
III. The International Processing Trap

3.1. Definition

3.1.1. The international processing

Definition: International processing is a business transaction method in which

one party (called the processor) imports raw materials or semi-finished products from
another party (called the processor) for processing, produce the finished product,
deliver it to the ordering party and receive remuneration (called processing fee).

Characteristic:

● Ownership of goods does not change from the party ordering the processing to
the party receiving the processing (ownership rights include: the right to
possess, the right to use, the right to dispose – meaning the rights to sell, give,
and exchange).
● Processing activities enjoy tax incentives and import and export procedures. In
Vietnam, this activity is managed according to separate regulations.
● Wages are equivalent to the amount of labor spent making the product. Some
people believe that a processing contract is a form of labor contract. In fact,
when signing international processing contracts, the Vietnamese side often
wants to separate wages.

3.1.2. The international processing trap

Definition:

The international processing trap refers to a situation in which developing

countries, including Vietnam, become overly dependent on low-value-added
processing and assembly activities within global value chains. These economies
primarily function as subcontractors for multinational corporations (MNCs),
performing labor-intensive tasks while capturing only a small fraction of the total
value created in production. This model, while beneficial for short-term
industrialization and employment, creates long-term vulnerabilities by limiting
technological advancement, innovation capacity, and sustainable economic growth.
Why the Processing Trap is a Concern for Vietnam

Vietnam is caught in the processing trap which is slowing inclusive and

sustainable economic development, across the country. Despite an increasing number
of either job creation options or exports, the economy still finds itself mired in not
much profitable production. The main constraint for their country seems to be the
focus on foreign direct investments, which put them at risk for technology transfer and
the whirlwinds of the external market. A high share of value-adds in the case of
transnational corporations owned mostly by companies from foreign countries results
in the pressure of domestic linkages to global supply chains and the consequent
difficulty when trying to climb up the industry ladder. Nevertheless, a very labor-
intensive workforce that is developing skills at a very slow pace is yet another factor
that obstructs the move to high tech industry. Besides, environmental problems such
as high emissions and the risks related to climate endanger economic stability in the
long run.
In order to diversify the industries, transfer technology, upskill the labor force,
and promote local production, it is necessary for Viet Nam to be proactive in
implementing innovative policies and investing in technology development to create
new jobs for sustainable growth.

3.2. Evidence of the Processing Trap in Vietnam

Recent studies and reports provide clear evidence that Vietnam is facing the
risk of falling into the international processing trap. The World Bank’s report Vietnam
2045: Trading Up in a Changing World – Pathways to a High-Income Future presents
concrete data to support this claim.

3.2.1. Heavy Reliance on Foreign Companies for Exports

Foreign companies account for 73% of Vietnam’s total exports, underscoring

the country’s heavy reliance on foreign-led processing activities.

3.2.3. Declining Participation of Domestic Enterprises in Global Value Chains

(GVCs)

The participation of local enterprises in global value chains has declined from
35% in 2009 to just 18% in 2023, indicating that domestic firms are at a disadvantage,
capturing only a small portion of the value from exported goods—mainly through
final-stage assembly.

3.2.3. Weak Contribution of Services to Exports

Services make up just 12% of total exports and only 7% of manufacturing

exports, highlighting the country's strong focus on low-value manufacturing rather
than higher-value-added activities.
3.2.4. Low-Value Activities Dominating Private Enterprises

The KPMG Vietnam report, Integration into Global Value Chains: A Roadmap
for Vietnamese Private Enterprises, highlights that the majority of Vietnamese private
enterprises operate in labor-intensive, low-margin stages such as processing and
assembly. In the textile and garment industry, 65% of enterprises are engaged in CMT
(Cut, Make, Trim) production, a process that involves minimal value addition. As a
result, these businesses face post-tax profit margins of only 1–3%, reflecting the
limited economic benefits captured by domestic firms in the global supply chain.

3.2.5. Low-Skilled Workforce Hindering Industrial Upgrading

The proportion of highly skilled workers in manufacturing stands at just 5%,

and only 10% of the population holds a university degree, emphasizing Vietnam’s
dependence on low-cost labor rather than a skilled workforce capable of driving
innovation and industrial upgrading.

The AMRO Asia report, Vietnam’s Route to Moving Up Global Value Chains,
highlights Vietnam's efforts to transition from basic assembly manufacturing to
higher-value-added production. However, the country faces significant challenges,
including a lack of skilled labor and underdeveloped technological infrastructure,
which hinder its ability to move up the value chain.

A study published in the Journal of Economic Structures, Carbon Emissions

versus Value-Added in Export-Driven Countries: The Case of Vietnam, further
confirms that Vietnam primarily operates at the lower end of the global value chain,
focusing on assembly and processing, which generate the least value-added. The study
also reports a 15.8% increase in CO2 emissions from 2006 to 2015, illustrating the
environmental cost of Vietnam’s current manufacturing model.
Summary Table of Specific Evidence

Chỉ số Chi tiết Nguồn

Export share of foreign Accounts for 73% of https://www.worldbank.org/
companies exports en/country/vietnam/publicati
on/viet-nam-2045-trading-
up-in-a-changing-world
Participation of domestic Decreased from 35% in https://www.worldbank.org/
enterprises in GVC 2009 to 18% in 2023 en/country/vietnam/publicati
(Global Value Chains) on/viet-nam-2045-trading-
up-in-a-changing-world

Participation of private 65% engaged in labor- https://kpmg.com/vn/en/hom

enterprises intensive work and CMT e/insights/2023/03/integratio
(Cut, Make, Trim), with n-into-global-value-
post-tax profit margins of chains.html
1–3%.

https://www.worldbank.org/
Contribution of service Accounts for only 12% of en/country/vietnam/publicati
exports total exports and 7% of on/viet-nam-2045-trading-
manufacturing exports. up-in-a-changing-world

Only 5% are highly https://www.worldbank.org/

Highly skilled workforce skilled, and 10% of the en/country/vietnam/publicati
population holds a on/viet-nam-2045-trading-
university degree. up-in-a-changing-world

Vietnam struggles to https://vir.com.vn/labour-

Challenges in moving up transition to higher-value disruption-in-industry-40-
the value chain production due to lack of 65668.html?utm_source=cha
skilled labor and tgpt.com
underdeveloped
technological
infrastructure.
CO2 emissions increased http://www.dcc.gov.vn/kien-
Environmental impact of by 15.8% from 2006 to thuc/1084/Bao-cao-cap-nhat-
export-led manufacturing 2015, and carbon intensity hai-nam-mot-lan-lan-thu-ba-
rose from 0.99 to 1.14 kg cua-Viet-Nam-(BUR3)-gui-
CO2 per USD, reflecting Cong-uoc-khung-cua-Lien-
the environmental cost of hop-quoc-ve-bien-doi-khi-
low-value manufacturing. hau.html
3.3. Economic Risks of the Processing Trap

Vietnam's reliance on processing and assembly industries presents several

economic risks that could hinder long-term growth and sustainable development.
These risks are well-documented in reports from international organizations, including
the UNDP, World Bank, and Business Information Services Federation.

3.3.1. Competitive Pressure from Lower-Cost Economies

One of the primary risks of the processing trap is that Vietnam faces increasing
competition from countries with even lower labor costs, such as Bangladesh,
Cambodia, and Myanmar. The UNDP report, Vietnam, Technology and the Middle-
Income Trap, highlights that Vietnam must move beyond low-value manufacturing
into higher-tech production to remain competitive. However, with research and
development (R&D) investment at only 0.5% of GDP, Vietnam’s ability to transition
to a knowledge-based economy is significantly constrained. Without substantial
investment in innovation, automation, and upskilling the workforce, the country risks
stagnation in low-margin industries.

3.3.2. Environmental and Sustainability Challenges

The World Bank’s Vietnam 2045 Report underscores the environmental

consequences of Vietnam’s dependence on export-driven manufacturing. The sector
accounts for approximately one-third of the country’s total CO2 emissions, and
emissions from manufacturing have grown at three times the rate of GDP expansion
over the past three decades. This rapid industrialization, combined with weak
environmental regulations, has led to significant pollution, affecting air quality, water
resources, and public health.

Moreover, Vietnam’s industrial zones are predominantly located in disaster-

prone areas, such as river floodplains and coastal zones, making them highly
vulnerable to climate-related disruptions. Frequent typhoons, rising sea levels, and
flooding pose severe risks to manufacturing supply chains, leading to production
delays, financial losses, and reduced investor confidence.

3.3.3. Declining Foreign Direct Investment (FDI) in High-Value Sectors

The Business Information Services Federation report, Vietnam to Fall into the
Processing and Assembly Trap, warns that over-reliance on low-cost labor and
outdated technology could deter investment in high-value sectors. As global investors
increasingly prioritize knowledge-based industries, Vietnam risks losing European
Union (EU) and multinational investment to countries with better technological
infrastructure and innovation ecosystems.

In particular, industries such as electronics and automobile manufacturing

require advanced engineering, automation, and skilled labor, yet Vietnam continues to
attract investment primarily for basic assembly and processing. Without significant
improvements in education, vocational training, and technology adoption, Vietnam
may struggle to move up the value chain, leading to stagnant wages and poor working
conditions.

3.3.4. Risk of Wage Stagnation and Labor Market Issues

Vietnam’s economic growth has been driven by its young, low-cost workforce,
but this advantage is diminishing as wages gradually rise. If Vietnam fails to shift
towards higher-value production, companies may relocate to countries with cheaper
labor, leading to job losses and slower wage growth. This stagnation would further
exacerbate economic inequality and limit improvements in the standard of living.

Additionally, workers in the processing sector often lack opportunities for skill
enhancement and career progression, reinforcing a cycle of low productivity and
dependence on low-wage jobs. Without proactive policies to foster education, digital
transformation, and R&D, Vietnam could become trapped in a low-income
equilibrium, struggling to transition into a developed economy.
Summary Table of Key Risks

Chỉ số Chi tiết Số liệu minh họa Nguồn

https://www.undp.or
Limiting Low R&D R&D investment at g/vietnam/blog/viet-
technological investment, with only 0.5% of nam-technology-and-
advancement highly skilled GDP, with highly middle-income-trap
workers making up skilled workers
only 5% of the accounting for
manufacturing just 5% of the
workforce. workforce.

https://www.worldba
Vulnerable to Dependence on 73% of exports nk.org/en/country/vie
economic shocks foreign companies come from foreign tnam/publication/viet
(73% of exports), companies. -nam-2045-trading-
making it highly up-in-a-changing-
susceptible to trade world
disputes.

https://mof.gov.vn/w
Competitive Increasing Vietnam’s ebcenter/portal/vclvc
pressure from competition from minimum wage is stc/pages_r/l/chi-tiet-
lower-cost Bangladesh, higher than tin?dDocName=MO
economies Cambodia, and Bangladesh and FUCM163403&utm_
Myanmar, which Cambodia, putting source=chatgpt.com
offer even lower cost pressure on
wages. manufacturing.

https://kpmg.com/vn/
Low wages and The textile and Post-tax profit en/home/insights/202
poor working garment industry margins of 1-3%. 3/03/integration-into-
conditions. has low profit global-value-
margins, relying chains.html
on labor cost
competitiveness.

https://journalofecon
Environmental CO2 emissions CO2 emissions omicstructures.spring
 degradation. from exports are increased by eropen.com/articles/1
rising, with carbon 15.8% from 2006 0.1186/s40008-022-
intensity increasing to 2015. 00272-w
from 0.99 to 1.14
kg CO2 per USD.

https://blogs.worldba
Climate Industrial zones are Manufacturing nk.org/en/eastasiapac
vulnerability and located in flood- areas in coastal ific/resilient-shores-
disaster risks prone areas, regions and river risks-and-
making supply deltas face high opportunities-
chains vulnerable risks of flooding vietnams-coastal-
to typhoons and and production development?utm_so
sea-level rise. disruptions. urce=chatgpt.com

IV. Solutions to Escape the Processing Trap

To transition from a low-value-added processing hub to a high-tech

manufacturing and innovation-driven economy, Vietnam must implement long-term
structural reforms and policy adjustments. Below are key strategies to help Vietnam
escape the international processing trap and achieve sustainable economic growth.

1. Enhancing Domestic Value Addition and Supply Chain Development

- Develop local supply chains to reduce reliance on imported raw materials and
components.
- Encourage Vietnamese enterprises to enter high-value supply chains,
particularly in electronics, semiconductors, and machinery.
- Provide incentives for domestic suppliers to partner with foreign companies
and improve manufacturing capabilities.

Example: South Korea’s success in supply chain localization: Initially

dependent on foreign suppliers, South Korea developed strong local industries (e.g.,
Samsung and Hyundai) through government incentives and technology transfer.
Vietnam can adopt a similar model.
2. Attracting High-Quality FDI with Technology Transfer

- Shift from low-cost assembly FDI to high-tech and innovation-driven FDI.

- Require technology transfer agreements for FDI projects to ensure that local
firms gain knowledge and skills.
- Establish innovation hubs and industrial parks focused on high-tech
industries such as AI, robotics, and biotechnology.

Example: China’s "Made in China 2025" strategy: China strategically

moved up the value chain by attracting FDI in advanced technology sectors while
enforcing knowledge transfer policies. Vietnam should negotiate for more beneficial
FDI terms to maximize local benefits.

3. Upgrading Workforce Skills and Human Capital

- Invest in STEM (Science, Technology, Engineering, and Mathematics)

education and vocational training.
- Collaborate with universities and foreign companies to create technology and
engineering training programs.
- Provide government incentives for companies that offer employee upskilling
and R&D opportunities.

Example: Singapore’s workforce development programs: Singapore’s

investment in education and R&D transformed its economy from labor-intensive
industries to a global leader in finance, biotechnology, and electronics.

4. Promoting Research & Development (R&D) and Innovation

- Increase government and private sector spending on R&D.\

- Establish tax breaks and subsidies for companies investing in R&D and
innovation.
- Support Vietnamese tech startups and entrepreneurship in high-value
industries.

Example: Taiwan’s semiconductor dominance: Taiwan’s heavy investment

in R&D helped TSMC (Taiwan Semiconductor Manufacturing Company) become a
world leader in chip production. Vietnam should prioritize R&D incentives to
develop a domestic tech sector.
5. Diversifying Export Markets and Strengthening Trade Agreements

- Reduce dependence on a few major markets (e.g., China and the U.S.) by
expanding into Europe, ASEAN, and South America.
- Utilize Vietnam’s extensive Free Trade Agreements (FTAs) to access high-
value markets.
- Strengthen regional cooperation to boost trade independence and reduce
supply chain disruptions.

Example: Germany’s export diversification strategy: By expanding trade

agreements and focusing on high-quality production, Germany minimized economic
risks. Vietnam should follow a similar multi-market strategy.

6. Strengthening Industrial Policies and Government Support

- Implement clear industrial policies to promote high-tech industries and move

beyond low-cost manufacturing.
- Provide financial support for domestic enterprises to scale up production
and improve quality.
- Enhance infrastructure (smart factories, logistics, and digital
transformation) to support advanced manufacturing.

Example: Japan’s industrial policy shift: Japan transitioned from low-cost

manufacturing to high-value electronics and automotive industries through
targeted government policies. Vietnam must create a long-term roadmap for
industrial upgrading.

7. Encouraging Sustainable Manufacturing and Green Growth

- Adopt sustainable production practices to meet global environmental

standards (e.g., EU’s Carbon Border Adjustment Mechanism - CBAM).
- Invest in renewable energy, circular economy, and green technology to
attract eco-conscious investors.
- Develop sustainable supply chains to enhance long-term trade
competitiveness.

Example: Nordic countries’ success in green industries: By focusing on

sustainability and clean energy, these nations built competitive export industries.
Vietnam can attract high-value investments by positioning itself as a green
manufacturing hub.
V. Conclusion and Discussion

Vietnam stands at a critical turning point—it has the opportunity to move

beyond low-cost manufacturing and become a high-tech production and innovation
hub in Asia. By investing in domestic industries, workforce skills, and advanced
technologies, Vietnam can transition from an assembly-based economy to a leader in
high-value trade and sustainable growth.

Vietnam’s future success depends on its ability to modernize its trade structure,
strengthen industrial policies, and create a globally competitive manufacturing
ecosystem.
References

1. Reuters. (2025, January 6). Vietnam 2024 GDP growth quickens to 7.09%.
Retrieved from https://www.reuters.com/markets/asia/vietnam-2024-gdp-
growth-quickens-709-2025-01-06/
2. Vietnam Briefing. (2024). Vietnam’s trade performance in 2024: How to read
the data. Retrieved from https://www.vietnam-briefing.com/news/vietnams-
trade-performance-in-2024-how-to-read-the-data.html/
3. Ministry of Planning and Investment of Vietnam. (2025, January 6). Tổng kim
ngạch xuất nhập khẩu của Việt Nam năm 2024. Retrieved from
https://mpi.gov.vn/portal/Pages/2025-1-6/Tong-kim-ngach-xuat-nhap-khau-
cua-Viet-Nam-nam-202yk2j95.aspx
4. Consosukien. (2024). Xuất khẩu hàng hóa năm 2024 đạt 405.53 tỷ USD, Việt
Nam xuất siêu năm thứ 9 liên tiếp. Retrieved from https://consosukien.vn/xuat-
khau-hang-hoa-nam-2024-dat-405-53-ty-usd-viet-nam-xuat-sieu-nam-thu-9-
lien-tiep.htm
5. Chongbanphagia. (2023). Báo cáo xuất nhập khẩu Việt Nam năm 2023.
Retrieved from https://chongbanphagia.vn/download/f6945/bao-cao-xuat-nhap-
khau-viet-nam-nam-2023.pdf
6. Trading Economics. (2024). Vietnam exports by category. Retrieved from
https://tradingeconomics.com/vietnam/exports-by-category
7. Vietnam Briefing. (2024). Vietnam’s trade performance in 2024: How to read
the data. Retrieved from https://www.vietnam-briefing.com/news/vietnams-
trade-performance-in-2024-how-to-read-the-data.html/
8. Exim Trade Data. (2024). Vietnam export data. Retrieved from
https://eximtradedata.com/vietnam-export-data
9. General Statistics Office of Vietnam (GSO). (2025, January). Bức tranh xuất
nhập khẩu hàng hóa của Việt Nam năm 2024: Phục hồi, phát triển và những kỷ
lục mới. Retrieved from https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-
ke/2025/01/buc-tranh-xuat-nhap-khau-hang-hoa-cua-viet-nam-nam-2024-phuc-
hoi-phat-trien-va-nhung-ky-luc-moi/
10. Reuters. (2025, February 25). Vietnam’s US exports account for 30% of GDP,
making it highly vulnerable to tariffs. Retrieved from
https://www.reuters.com/markets/vietnams-us-exports-account-30-gdp-
making-it-highly-vulnerable-tariffs-2025-02-25/
11. World Bank. (2024). Viet Nam 2045: Trading up in a changing world.
Retrieved from
https://www.worldbank.org/en/country/vietnam/publication/viet-nam-2045-
trading-up-in-a-changing-world
12. KPMG. (2023). Integration into global value chains. Retrieved from
https://kpmg.com/vn/en/home/insights/2023/03/integration-into-global-value-
chains.html
13. AMRO Asia. (2024). Vietnam’s route to moving up global value chains.
Retrieved from https://amro-asia.org/vietnams-route-to-moving-up-global-
value-chains/
14. Nguyen, T. (2022). Vietnam’s trade and economic structure. Journal of
Economic Structures, 11(1), 1-15. Retrieved from
https://journalofeconomicstructures.springeropen.com/articles/10.1186/s40008-
022-00272-w
15. United Nations Development Programme (UNDP). (2024). Viet Nam,
technology, and the middle-income trap. Retrieved from
https://www.undp.org/vietnam/blog/viet-nam-technology-and-middle-income-
trap
16. FEBIS. (2022, November 3). Vietnam to fall into the processing and assembly
trap?. Retrieved from https://www.febis.org/2022/11/03/vietnam-to-fall-into-
the-processing-and-assembly-trap/
17. Wikipedia. (2024). Samsung. Retrieved from
https://en.wikipedia.org/wiki/Samsung