Seafood is one of Vietnam's key export commodities to the US market

As global trade dynamics evolve, Vietnamese businesses should be positioning themselves to maintain their competitive edge in the US market through strategic innovations and relationship building.

While tariffs present challenges, they may also drive innovation and improvement across Vietnamese industry. The resulting transformation could position Vietnam as an even more valuable trading partner for the US in the years ahead.

There are several key approaches that could reshape Vietnam's export landscape over the next decade. Most importantly, the focus must shift from pure cost competition to value creation. Vietnamese manufacturers would benefit from increasingly investing in advanced technologies and skilled workforce development to move up the value chain.

This transformation is already being discussed across several sectors. Major manufacturers are implementing Industry 4.0 technologies, including AI-driven quality control systems and automated production lines. These investments not only improve efficiency but also help offset potential tariff impacts through reduced operational costs.

Supply chain optimisation emerges as another crucial strategy. Some Vietnamese businesses are developing sophisticated logistics networks that incorporate real-time tracking, advanced inventory management, and predictive analytics. These improvements reduce waste, lower costs, and provide better service to US customers.

Relationship building with US partners is proving equally important. Many Vietnamese companies are moving beyond traditional supplier roles to establish strategic partnerships with US businesses. These collaborations often include joint product development, shared market research, and long-term supply agreements that can help buffer against market fluctuations.

There is an observable shift toward more integrated business relationships. Vietnamese companies are opening US offices, creating distribution networks, and developing direct relationships with end customers. This closer market presence helps maintain competitiveness regardless of tariff levels.

Innovation and specialisation are becoming key differentiators. Rather than competing solely on price, manufacturers are developing unique product offerings and specialised capabilities that make them valuable partners for US businesses. This includes investment in research and development, custom product development, and enhanced quality control systems. We are seeing some Vietnamese companies transform from contract manufacturers to true business partners, capable of delivering comprehensive solutions to US customers.

Looking ahead, several trends might emerge in Vietnam’s manufacturing industry: Increased adoption of digital twin technology for supply chain optimisation; Development of green manufacturing processes to meet US market demands; Implementation of blockchain-based tracking systems for transparency; Establishment of more US-based distribution centres; Growth in joint ventures with US technology providers.

Vietnamese businesses are also strengthening their trade compliance capabilities. Companies are investing in expertise and systems to ensure smooth customs processes and maintain trusted trader status with US authorities. This professional approach to compliance helps build confidence with US partners and reduces transaction friction.

As global supply chains continue to evolve, Vietnam's strategic approach to maintaining strong US trade relationships demonstrates the country's growing sophistication in international commerce. Through technology adoption, relationship building, and continuous improvement, Vietnamese businesses must work now towards ensuring their place in the future of global trade.

Considering the political goals of the new administration about to take over the Oval Office, the future of Vietnam-US trade relies on the ability of Vietnamese businesses to adapt and innovate.

Dr. Scott McDonald, RMIT Vietnam