The 2025 Business Forum, organized by the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Business Forum Magazine, took place against the backdrop of the Party and Government recognizing the private sector’s pivotal role in shaping Vietnam’s economic future. Strong directives have been issued to address obstacles and create momentum for the private economy to serve as a catalyst for a prosperous Vietnam.
At the Forum, consensus emerged that trust, supportive policies, the development of sustainable domestic supply and value chains, geographical indications, and a readiness to adapt are critical factors in enhancing national Competitiveness. These will thereby empower businesses to overcome challenges that the future holds.
Speaking at the “Business Forum 2025: Empowering Enterprises to Overcome Challenges and Elevate National Competitiveness,” held on April 17, 2025, and organized by Vietnam Business Forum Magazine, Mr. Nguyễn Duy Hưng, Chairperson of the Governance, Operation and Reputation Assurance Committee at Tân Hiệp Phát Group, emphasized the pivotal role of private enterprise. Citing 2024 data, he noted that private sector investment accounted for 55.9% of total nation-wide investment, surpassing the State sector (27.6%) and foreign direct investment (16.5%).
This, he argued, affirms the Party and Government’s correct strategic orientation—led by the General Secretary—that private enterprises are the primary engine of economic growth and deserve specific policy frameworks to foster their development.
From Individual Prosperity to National Resilience
Tân Hiệp Phát’s recommendations began with a fundamental point: enterprise development must transcend individual prosperity. The broader mission is to contribute to national strength, economic self-reliance, and even defense and security.
In an era of complex geopolitical and economic volatility, both businesses and the nation must proactively prepare for every scenario. Developing domestic enterprises has become an indispensable pillar of strategic economic autonomy, seen in models from Germany to Japan, South Korea, India, and China.
Mr. Hưng emphasized that improving Vietnamese firms’ competitiveness must go hand-in-hand with optimizing the domestic supply and value chains, aligning corporate gains with national interests. As such, nurturing large enterprises for global competitiveness must be balanced with building a robust network of national enterprises—those deeply embedded in local value chains and vital to economic sustainability.
Trust: The Bedrock of a Healthy Business Environment
“Trust is non-negotiable,” Mr. Hưng declared. Enterprises must be able to trust in a policy environment that is consistent, transparent, fair, and effectively implemented.
Trust —among firms and stakeholders including partners, consumers, workers, and shareholders – must be built. A product’s brand guarantees its quality, and consumers must be able to trust that it meets safety, quality, and price expectations. Equally, businesses must trust in their capabilities when taking on investment risks.
Importantly, the government must trust businesses—believing in their compliance, transparency, accountability, and competence. This can manifest in fewer bureaucratic procedures, reduced licensing burdens, and greater autonomy for firms to manage themselves. With such confidence, authorities can assign large-scale national projects to domestic enterprises.
Mr. Hưng also addressed a critical structural issue: Vietnam’s 5 million household businesses, which contribute 30% of GDP and 9 million jobs, often resist scaling up into formal enterprises due to tax concerns and high compliance costs. This inhibits growth, investment, and resilience in the face of economic shifts.
Another structural inefficiency is the lack of medium- to long-term agreements in domestic supply chains. Most business engagements are short-term, impeding long-term planning and capital investment.
“Driven by trust and vision, Tân Hiệp Phát has, over the past 30 years, reinvested all its profits into growth, deploying over $300 million into 12 of the world’s most advanced aseptic production lines and 8 manufacturing plants, creating thousands of jobs and consistently contributing to the national budget,” said Mr. Hưng.
National Quality Infrastructure: Closing the Gap with Global Standards
Despite many improvements, Vietnam’s national quality infrastructure (NQI)—the system of standards, metrology, conformity assessment, and accreditation—still diverges significantly from global benchmarks. Products that pass local standards may still fall short in export markets.
Many international standards are compulsory abroad but not yet in Vietnam. This has led to what experts dub the “local-standard vs. global-standard gap.” Products labeled as “certified” may not meet expectations, while unbranded goods with unclear origins still flood traditional markets. Counterfeits persist.
NQI, as a legal and technical foundation, enables enterprises to upgrade product quality, expand to international markets, and reduce technical trade barriers. As of late 2023, Vietnam had 13,500 national standards, about 62% harmonized with global norms like ISO and IEC. However, regional peers such as Singapore, Malaysia, and Thailand have higher harmonization rates.
Tân Hiệp Phát has adopted rigorous international standards such as HALAL Food Certification and FDA approval, underscoring its commitment to global benchmarks. “Just as athletes must meet rigorous standards to compete at the top, so must producers and suppliers meet stringent quality demands,” Mr. Hưng noted.
Building Enduring, Inclusive Supply Chains
Global value chains span numerous countries and actors, each contributing from raw materials to distribution. These chains emphasize specialization and continual innovation. To remain part of these systems, businesses must consistently offer greater value than their competitors.
Participation in global value chains should not be viewed solely through the lens of exports. Many domestic firms are disconnected from global supply chains and rely exclusively on local inputs. This leaves them vulnerable to foreign competition, even within their home market, especially via e-commerce platforms and imported goods.
Trade protectionism is not a long-term solution, given the complexity of multilateral and bilateral commitments. Instead, Vietnam’s only viable path is to enhance its domestic enterprises’ competitiveness—rooting them in national supply and benefit chains.
Key actors must include large enterprises, workers, farmers, suppliers, and distributors—especially the dynamic network of 5 million household businesses. If these actors are interconnected through trust, high standards, and long-term benefits, they can collectively forge a resilient, self-sufficient Vietnamese economy.
“Self-reliance,” Mr. Hưng emphasized, “does not mean isolation. It means having enough internal strength to engage globally on our own terms.”
Tân Hiệp Phát’s value chain, built on Vietnamese herbs and teas, spans thousands of farmers, suppliers, 700,000 retail points, and maintains approximately 3,500 – 4,000 employees on a regular basis. Crucially, most input costs remain within the domestic economy.
Leveraging Geographic Indications as Strategic Advantages
In addition to investment in technology, human capital, and innovation, Mr. Hưng highlighted the importance of leveraging geographical indications (GI) as unique competitive edges.
GI identifies products tied to specific localities and attributes—whether reputation, quality, or uniqueness—derived from their geography. Vietnam has 141 GIs registered for regional specialties, from Lục Ngạn lychee and ST rice to Phú Quốc fish sauce and Huế conical hats.
Yet, by the end of 2024, only 41 Vietnamese products had international GI protection—39 in the EU and 2 in Japan. Policies must prioritize identifying and globally protecting Vietnamese-origin products to build international brands and export value.
Choosing the Right Global Partners
Global integration offers both opportunities and risks. One significant opportunity is the ability to leapfrog development by partnering with world leaders in technology, processes, and supply chains.
Vietnamese businesses should align with reputable global players to build long-term, strategic partnerships. “Standing on the shoulders of giants,” Mr. Hưng argued, “helps us grow faster and more efficiently.”
Over three decades, Tân Hiệp Phát has collaborated with top-tier global technology and raw material partners in the beverage industry, including Germany’s GEA and KRONES, Canada’s HUSKY, and Japan’s TAKASAGO.
Agility Amid Market Volatility
Finally, Mr. Hưng stressed the importance of being prepared for change. Market disruptions—whether from war, trade disputes, or shifting labor and capital flows—inevitably affect costs, policies, and competitiveness.
Businesses must be willing to pivot, cut losses when necessary, and seize new opportunities. “Volatility may be a risk to some but a golden opportunity to others,” he remarked.
The government’s mission is national interest. Enterprises, while profit-driven, must align their growth with social responsibility and national objectives.
“Tân Hiệp Phát has undertaken comprehensive initiatives in technology, innovation, digital transformation, human capital, circular economy, and sustainability to boost competitiveness while fulfilling social commitments,” Mr. Hưng concluded.
“We propose policies that foster a trustworthy, high-standard, and competitive market environment—supporting strong domestic enterprises integrated into national supply and benefit chains. That’s how we secure economic self-reliance and national security.”
Mr. Hưng closed with a note of confidence: “As long as our Party—led by the General Secretary—and the Government—led by the Prime Minister—remain committed to reform and to addressing our current shortcomings, Vietnam will surely achieve its development goals. The private sector is not only the main economic driver —it’s the engine of entrepreneurial spirit and national service.”
Source: https://diendandoanhnghiep.vn/dien-dan-doanh-nghiep-2025-dong-luc-phat-trien-va-nang-cao-nang-luc-canh-tranh-quoc-gia-10153138.html
