Vietnamese businesses under Trump 2.0: Shaping long-term strategies

Tiếng Việt

Vietnamese businesses under Trump 2.0: Shaping long-term strategies

Under Trump 2.0, with global trade and technology shifts, Vietnamese businesses need long-term strategies focusing on innovation, sustainable investment, and international collaboration.

From the previous article, it is evident that the trade and technology shifts under Trump 2.0 not only pose significant challenges but also open up potential opportunities for Vietnamese businesses.

To maximise these opportunities and effectively navigate the disruptions, experts from RMIT University Vietnam have provided a series of recommendations focusing on three key pillars: long-term investment, market diversification, and technological innovation.

Long-term investment and market diversification to reduce risk and expand opportunities

Dr Haji Suleman Ali, an economics lecturer at RMIT Vietnam, emphasises that Vietnamese businesses need to move beyond short-term thinking and focus on long-term investment to build a solid foundation. While short-term solutions, such as tax incentives or export support policies, may address immediate exchange rate fluctuations, sustainable growth requires leveraging resources to invest in production infrastructure, modern technology, and skilled workforce development.

Strategic long-term investment is key to minimising risks and seizing global opportunities.

Strategic investment not only enables businesses to meet the stringent demands of international markets but also enhances their competitiveness in the region. This is key to mitigating risks from economic fluctuations and maintaining a strong position in the global value chain.

Additionally, over-reliance on a single market, such as the United States, can leave Vietnamese businesses vulnerable to abrupt policy changes. According to Dr Ali, businesses must swiftly implement market diversification strategies, targeting new regions such as Europe, the Middle East, and Africa.

Expanding export markets not only reduces risks but also creates opportunities for businesses to develop products and services tailored to the needs of each region. Furthermore, diversifying international partnerships helps businesses establish robust economic relationships and reduces dependence on a single large market.

Focusing on innovation to elevate the value chain

Associate Professor Pham Thi Thu Tra, an economist from The Business School, RMIT Vietnam, highlights that to elevate their position in the global supply chain, Vietnamese businesses need to transition from simple assembly and manufacturing roles to producing high-value-added products.

Innovation is the key to achieving this. Investment in research and development (R&D), creating unique products and services to meet international market demands, will enable businesses to build sustainable competitive advantages. At the same time, developing a skilled workforce and improving management capabilities are crucial for maintaining resilience in the global business environment.

Investing in R&D and innovation is essential for elevating Vietnam’s role in the global supply chain.

Dr Scott McDonald, a lecturer in Supply Chain Management, underscores the role of modern technology, such as automation, blockchain, and artificial intelligence (AI), in optimising production processes and enhancing supply chain management efficiency. These solutions not only improve productivity but also help Vietnamese businesses establish strategic partnerships with international companies, particularly in the US market.

Technological innovation: The key to long-term growth

In the realm of technology, Vietnamese businesses face both opportunities and challenges. According to Dr Sreenivas Tirumala from the School of Science, Engineering & Technology, US restrictions on technology exports could slow Vietnam’s technological modernisation, especially in fields like artificial intelligence (AI), cybersecurity, and automation.

Technology export controls present hurdles but encourage local tech development.

However, Dr Tirumala notes that Vietnam can still capitalise on collaboration opportunities in socially impactful technology sectors, such as disaster management, weather forecasting, and environmental pollution control. These areas not only provide access to advanced technologies but also create opportunities to promote sustainable development.

Moreover, investment in modern management technologies will enable Vietnamese businesses to enhance their competitiveness and better meet the rigorous requirements of international markets.

International collaboration: A cornerstone for sustainable development

Experts from RMIT Vietnam agree that building strategic partnerships with international companies is essential for sustainable development. Such collaborations not only grant businesses access to technological resources but also support market expansion and reduce risks associated with policy fluctuations.

Building strategic global partnerships ensures sustainable growth amidst a volatile landscape.

International cooperation also provides Vietnamese businesses with opportunities to learn advanced management practices and improve adaptability in a rapidly changing global economy.

Amid the significant changes in US trade and technology policies, Vietnamese businesses must prepare meticulously with long-term strategies grounded in innovation, sustainable investment, and international collaboration. The recommendations from RMIT Vietnam experts underscore that preparation today not only enables businesses to effectively tackle current challenges but also opens the door to long-term growth, contributing to Vietnam’s rising position on the global economic map.

Story: Quan Dinh H.

Masthead image: Hien Phung – stock.adobe.com

Business and management

Science and technology

09 December 2024