This rate is lower than that of other Southeast Asian countries such as Thailand and Malaysia by 10%-25%. In 2018 alone, Vietnamese SMEs lost 58 billion USD due to limited linkages with foreign supply chains.
The Ministry of Industry and Trade forecasts that Vietnam’s export value in 2019 will increase by 8%-10% year on year. As such, the potential value gained from the global supply chain for Vietnam could reach 64 billion USD.
In the future, more international automobile, electronic and aviation corporations will be shifting their factories from other regional countries to Vietnam. This should greatly motivate Vietnamese SMEs to improve their localization rates, competitiveness, and management in order to become the primary suppliers of those companies.
