Vietnam’s export-driven economy is making headlines again, but not just for its record-breaking numbers. As the country races toward a 12% export growth target for 2025, the roles of foreign direct investment (FDI), domestic enterprise, and government policy are all coming under the microscope. Recent months have seen pivotal developments in both the electronics and rice sectors, each showcasing Vietnam’s ambitions, its strengths, and the challenges it must overcome to cement its place on the global stage.
According to Dr. Luong Minh Huan, Director of the Institute for Business Development at the Vietnam Chamber of Commerce and Industry (VCCI), the FDI sector currently accounts for approximately 71% of Vietnam’s total export turnover. In certain high-tech fields—think phone manufacturing, components, and computers—this number jumps to a staggering 98-99%. "This shows that the role of domestic enterprises is still very limited. Our localization rate remains very low," Dr. Huan told Bao Giao Thong on September 12, 2025.
Vietnamese firms, he explained, are largely confined to low value-added stages such as processing and assembly. To break out of this cycle, Dr. Huan argues, a synchronized shift is needed. "The government must have effective support policies. Business associations need to better fulfill their role as bridges, connectors, and information providers. And enterprises themselves must be more proactive, with clear strategies, objectives, and plans when participating in supply chains."
It’s a sentiment echoed by Tran Thi Thu Trang, Chairwoman of Hanel PT—a rare example of a Vietnamese company that has climbed the ladder to become a first-tier supplier for global electronics giants. Ms. Trang points to a unique strategic advantage: Vietnam’s peace and stability. "The game has changed. Quality is no longer the only competitive factor; it’s a basic requirement. The real difference lies in the philosophy of service and deeply understanding the customer," she said. Hanel PT, for example, tracks international customer satisfaction monthly, consistently scoring 99-100 points. "If a client gives us 99, we’ll go to them and ask exactly what cost us that last point so we can fix it. Selling a machine or component is just the start of our journey with a customer. We want them to feel truly happy buying from us."
These high standards are being set against a backdrop of explosive growth in the electronics sector. Over the first eight months of 2025, electronics exports made up more than 30% of Vietnam’s total export turnover, hitting an absolute value of $100 billion—a 25% jump over the same period last year, according to Bao Cong Thuong. This surge has helped Vietnam establish itself as the electronics manufacturing hub of ASEAN. Much of this success is attributed to Vietnamese electronics firms making the most of next-generation free trade agreements (FTAs) and taking advantage of temporarily suspended tariffs to ship products early to the United States, their largest export market.
But this boom comes with its own set of challenges. The electronics industry is grappling with a shortage of high-quality human resources, dependence on imported materials, and inconsistent infrastructure. As global supply chains shift toward digitization and sustainable development, domestic tech companies are maturing, but they’re also calling for more robust government support. There’s optimism surrounding the recently amended Decree 205 and Decree 111, which provide incentives for R&D, workforce training, digital transformation, and more. Industry leaders hope the Ministry of Industry and Trade will swiftly implement these policies so companies can benefit from preferential treatment, especially as they expand into promising markets like India and Southeast Asia.
Meanwhile, Vietnam’s rice sector is facing a different set of circumstances, but with equally high stakes. On September 10, 2025, the Ministry of Industry and Trade convened a conference at its Hanoi headquarters to address rice production, export, and market stabilization. Minister Nguyen Hong Dien, who chaired the event, underscored rice’s critical role: "Rice is a strategic staple for most countries and is a matter of economic and political security. Today, with export volumes in the tens of millions of tons, rice brings in tens of billions of dollars annually, contributing greatly to the national budget and creating jobs and income for millions of farmers."
But the sector is not without its headwinds. Customs data shows that in the first eight months of 2025, rice exports reached nearly 6.37 million tons, worth over $3.26 billion—up 3.7% in volume but down 15.4% in value compared to the same period in 2024, which was a record year. The drop in value is partly due to some major export markets shrinking for reasons beyond Vietnam’s control. In response, Prime Minister Pham Minh Chinh issued Directive 160/CD-TTg on September 9, calling for a coordinated effort to boost production, exports, and market regulation.
The conference brought together not only government officials but also representatives from the Vietnam Food Association and the 20 largest rice exporters. Deputy Minister of Agriculture and Rural Development Tran Thanh Nam emphasized the sector’s dual mission: ensuring domestic food security while maintaining export value, especially as major partners temporarily halt imports. He outlined plans to avoid bottlenecks during the main harvests in September and the peak season in November and December. "Vietnamese rice is now present in 80 countries and territories. Australia, for example, highly values our rice quality, showing the potential to expand beyond traditional markets," Deputy Minister Nam said. He also highlighted growing interest from African nations and called for trade counselors to strengthen market intelligence and connections abroad.
Minister Nguyen Hong Dien presented a five-point action plan, calling on ministries to monitor and respond to policy changes in key markets, provide timely information and forecasts, and facilitate digital transformation in export procedures. He urged the finance ministry and central bank to streamline VAT refunds and customs procedures, and to consider increasing credit limits and national reserves to support rice exporters. The government and National Assembly were encouraged to review proposals for preferential loans and logistics support, while industry associations were asked to keep members informed and compliant with both Vietnamese and foreign regulations.
For rice exporters, the marching orders are clear: maintain quality, study and meet the standards of importing countries, and build the Vietnamese rice brand. There’s a push to diversify both products and markets, targeting new regions like Africa, the Middle East, and South Asia. "Absolutely do not be complacent; we must diversify markets and products, enhance the value of Vietnamese rice, and strengthen the brand," Minister Dien cautioned. He also called on the media to promote the government’s green, high-quality rice initiative and to avoid unverified reporting that could undermine negotiations or dispute resolutions.
Across both electronics and rice, the message is the same: Vietnam’s export miracle is built on a complex interplay of FDI, domestic enterprise, and government policy. The country’s future success will depend on how well it can nurture homegrown champions, adapt to global trends, and ensure that its prosperity is both broad-based and resilient in the face of shifting international winds.
