Tran Quoc Hung, an international economic and financial expert, observes that despite Vietnam’s role as a “connector economy” in the China‑Plus‑One strategy, foreign‑invested enterprises (FIEs) account for roughly 80 % of the country’s total export turnover and the nation attracts an annual average of $35–38 billion in registered FDI.

The dominance of FIEs masks a shallow domestic value chain. Domestic firms are limited to low‑value packaging and boxing, while core components and high‑tech semi‑finished products—exemplified by the operations of a major technology corporation, S.—are imported. Consequently, Vietnam’s domestic value‑added (DVA) index rests at 39 %, well below the 40‑60 % range typical of other emerging economies.

Hung warns that to meet the government’s ambition of 8.5 % GDP growth by 2030, labor productivity must rise by 8.5‑9 % each year, a rate far above the 5.6 % contribution recorded between 2016 and 2023. Achieving this leap will require accelerated automation and artificial‑intelligence integration across factories.

Policy experts propose shifting FDI attraction from sheer volume to depth: mandating joint‑venture arrangements, setting timelines for training Vietnamese staff to replace foreign labor, and encouraging domestic firms to supply semi‑finished components. Parallel reforms—streamlined startup entry, expanded capital markets, and incentives for idle domestic capital—could furnish the resources needed for a more integrated value chain.

Unless Vietnam converts its abundant foreign capital into substantive supply‑chain linkages, domestic enterprises will continue to occupy peripheral, low‑value niches, limiting the economy’s capacity to climb the global value ladder.