Manufacturing cost for US partners fell from about $50 five years ago to around $25 today, showing pressure to improve efficiency.

Le Tung adds that innovation is not measured by the number of R&D departments but by how a firm uses technology, data and research to create products the market will accept. Nguyen Quoc Thinh, senior lecturer at Thuongmai University, says innovation should be examined through four lenses – products, processes, organization and tools – especially digital tools.

Thinh notes that branding, innovation and culture are three pillars of “soft power” that help businesses and even countries retain more value in global chains. Vietnam’s National Brand Program aims for 5‑10 Vietnamese companies to reach the world’s Top 500 and for the national brand to rank in the global Top 25 by 2035.

The fading low‑cost advantage means firms must move up the value chain, investing in R&D, branding and culture to stay competitive in international markets.