Despite significant milestones in export and foreign direct investment (FDI) attraction, Vietnam must overcome its core limitations if it is to achieve breakthrough growth in the years ahead. With appropriate institutional reforms and the strategic adoption of technology, the country can attain sustainable growth and avoid the middle-income trap amid an aging population and increasing economic pressures. Vietnam is currently the world’s second biggest exporter of smartphones and smartphone parts. For computer component exports, it ranks fifth, sixth for computer device exports, seventh for software outsourcing, and eighth for electronic component exports. These are commendable achievements, but they primarily hold statistical significance in terms of growth. For instance, the electronics and smartphone manufacturing industries—which account for a large proportion of total export revenue—import up to 89% of their component value. These figures indicate that Vietnam occupies the lowest tier in the value chain, primarily engaging in assembly and auxiliary services. This is not just a challenge but a stark reminder of the urgent need to enhance domestic capabilities to achieve sustainable growth. Amid an aging population To achieve long-term growth, Vietnam must address fundamental issues related to its current growth drivers, with exports being the most crucial factor requiring in-depth […]
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