Integration into Global Value Chains

The manufacturing sector in Vietnam is a driving force behind its economic growth. Vietnam has also positioned itself as a manufacturing hub due to its geographical location, favorable government policies, low labor cost, large labor pool, and China+1 Strategy. But most Vietnamese Private Enterprises (PEs), constituting a major portion of all manufacturing enterprises in Vietnam, still participate in the labor-intensive, less profitable, low value-added stages of the global value chain. If Vietnamese PEs can adapt to "The New Normal" of global manufacturing by enhancing their competencies throughout the supply chain, they can increase their prospects of advancing along the global value chain.

This report is structured to provide an overview of the current state of Vietnam’s position in the Global Value Chain and a forward-looking view of what is possible.