Economic Diplomacy – Paving the Way for Development

The world is entering a period of profound transformation, marked by rapid and unpredictable changes. Strategic competition among major powers, economic fragmentation, trade protectionism and the restructuring of supply chains are becoming increasingly pronounced. At the same time, the green transition, digital transformation, artificial intelligence and emerging technologies are reshaping production and business models, as well as the structure of the global economy.

These developments place new requirements on foreign affairs in general and economic diplomacy in particular. While political diplomacy contributes to maintaining a peaceful and stable environment and strengthening trust among nations, economic diplomacy has the mission of transforming the outcomes of external relations into drivers of development. In the new context, economic diplomacy is not limited to promoting exports, attracting investment or organizing trade promotion activities, but also plays a role in building an ecosystem that connects international resources, ranging from markets, capital, technology, knowledge and high-quality human resources to innovation and global production and business networks.

As the national organization representing the Vietnamese business community, the Vietnam Chamber of Commerce and Industry (VCCI) has consistently identified external relations as one of its key tasks in fulfilling its role of representing, supporting and promoting the international integration of Vietnamese enterprises.

Through nearly 500 business forums, trade and investment promotion programs, and international business delegations each year, VCCI contributes to supporting Vietnamese enterprises in strengthening their positions in traditional markets while expanding their presence in new markets with strong potential. Through these efforts, enterprises are gradually diversifying their markets, minimizing risks and enhancing their resilience to fluctuations in the global economy.

On May 13, General Secretary and President To Lam, Chief Minister of Maharashtra (India) Devendra Fadnavis, VCCI President Ho Sy Hung and CII President R Mukundan witnessed the signing of cooperation agreements between the two countries. Photo: VNA

With a network of more than 100 international partners, including chambers of commerce, business associations and trade promotion organizations around the world, VCCI accompanies Vietnamese enterprises in accessing partners, capital, technology, management knowledge and advanced business models. In the context where the green transition, digital transformation and responsible business have become essential requirements for deeper participation in global value chains, international cooperation programs also help enterprises access international experience, standards and practices, thereby enhancing their adaptability and competitiveness.

Another important value of economic diplomacy is its contribution to enhancing the position and voice of Vietnamese enterprises in the process of shaping regional and global economic rules. Through active participation in ABAC, ASEAN-BAC, GMS and other multilateral cooperation mechanisms, VCCI not only contributes to enabling Vietnamese enterprises to integrate more deeply into the global economy, but also conveys the voice, interests and recommendations of the business community to discussions on policies, trade, investment and sustainable development.

This is also a flexible and practical approach for Vietnamese enterprises to participate early in the process of shaping new initiatives, policies and rules, thereby contributing to protecting their legitimate interests in an increasingly competitive international business environment. “Diplomacy Paves the Way – Businesses Move Forward – The Economy Takes Off” not only reflects a spirit of action but also highlights the close relationship between State diplomacy and the business community in transforming the potential of international cooperation into a driving force for national development.

Accompanying and Coordinating to Enable Businesses to Move Forward

Based on its practical activities, VCCI has always highly appreciated the attention, support and close coordination of the Ministry of Foreign Affairs, its functional units, Vietnamese Embassies and representative missions abroad for the business community. Such coordination is reflected in various aspects, from providing information on local markets, policies and laws to supporting the organization of business forums, trade and investment promotion activities, as well as connecting Vietnamese enterprises with management agencies, promotion organizations, chambers of commerce and business associations in host countries.

In particular, within the framework of high-level visits and external relations activities by Party and State leaders, coordination between foreign affairs agencies and the business community has contributed to effectively connecting political diplomacy with economic diplomacy, linking State-level relations with substantive cooperation programs between enterprises of the two countries. This is a clear demonstration of how the outcomes of external relations can be transformed into opportunities for cooperation and development.

It can be affirmed that economic diplomacy plays the role of paving the way; VCCI and business associations serve as bridges; while enterprises are the direct actors in realizing development opportunities. When these three actors coordinate closely and effectively and fulfill their respective roles, external relations activities will generate stronger spillover effects, making practical contributions to economic growth and enhanced competitiveness.

In recent years, coordination among the Ministry of Foreign Affairs, Vietnamese representative missions abroad and VCCI has become increasingly proactive, practical and results-oriented. Representative missions have been effectively promoting their role as bridges, helping Vietnamese enterprises access international markets and resources. In turn, VCCI and the business community contribute to transforming opportunities arising from external relations into specific cooperation programs, investment projects, trade activities and business connections.

Entering a new stage of development, the requirement is to elevate this coordination to a higher level, towards being more proactive, timely, in-depth and substantive. Vietnamese representative missions abroad should continue to promote their role as “frontline outposts” of economic diplomacy, not only responding to enterprises’ information needs but also proactively conducting research, forecasting trends, identifying opportunities, warning of risks and connecting potential partners.

On the part of enterprises, VCCI and industry associations also need to be more proactive in providing information on market demand, technology, capital and partners, enabling representative missions to support enterprises based on their actual needs, at the right time and with the right focus. The goal is to establish a seamless support process, from identifying opportunities and connecting partners to supporting implementation, monitoring results and continuing to accompany enterprises in realizing cooperation opportunities.

A business forum can only be truly successful and meaningful when, following the forum, projects are advanced, cooperation relationships are established and connections are sustained. Similarly, an external affairs mission can only fully realize its value when initial opportunities continue to be nurtured through support activities and developed into long-term cooperation relationships. This is also the spirit of the message “Diplomacy Paves the Way – Businesses Move Forward – The Economy Takes Off.”

On May 7, General Secretary and President To Lam, Prime Minister of Sri Lanka Harini Amarasuriya, VCCI President Ho Sy Hung and representatives of the leadership of the Sri Lanka Export Development Board witnessed the exchange of cooperation documents between the two countries. Photo: VNA.

Innovating to Make Economic Diplomacy Truly a Pioneering Force

To further enhance the effectiveness of economic diplomacy in the new era, based on the practical experience of the business community, several orientations should be focused on.

First, it is necessary to continue renewing the approach to economic diplomacy, shifting strongly from a purely promotional mindset to one focused on building a development ecosystem. Each market should have an appropriate strategy, clear priority areas should be identified for each partner, and each external relations activity should aim for specific and measurable outcomes.

At the same time, a regular coordination mechanism should be established among the Ministry of Foreign Affairs, Vietnamese representative missions abroad, VCCI and business associations. Consideration may be given to establishing a regular information-sharing network on market opportunities, investment projects, technology needs, trade barriers and policy changes that directly affect enterprises.

In the new context, the early warning function should be given greater importance. Vietnamese enterprises are facing increasingly stringent requirements regarding green standards, carbon emissions, traceability, data, technology and responsibility within supply chains. Timely updates and warnings on market changes will help enterprises proactively prepare, adapt, mitigate risks and better capitalize on opportunities.

At the same time, it is necessary to continue reforming procedures and strengthening decentralization and delegation of authority in external relations activities, particularly for regular and specialized activities that have already been included in approved programs and plans. In the international business environment, opportunities often emerge quickly and are time-sensitive. Therefore, effective economic diplomacy needs to be accompanied by flexible and timely administrative mechanisms that respond to practical requirements.

Another priority is to strengthen support for Vietnamese enterprises to participate more deeply in global value chains and innovation ecosystems. Vietnamese representative missions abroad can work more closely with VCCI to connect Vietnamese enterprises with multinational corporations, investment funds, innovation centers, universities and research organizations, particularly in strategic fields such as artificial intelligence, semiconductors, digital technology, clean energy, the green economy and high value-added industries.

At the same time, greater efforts should be made to leverage the role of the overseas Vietnamese business and intellectual community. This is an important source of knowledge, capital, technology and international networks that can serve as an effective bridge between Vietnamese enterprises and overseas markets.

For the business community, VCCI is committed to continuing to work closely with the Ministry of Foreign Affairs, ministries, sectors, localities and Vietnamese representative missions abroad; proactively conveying the voice of Vietnamese enterprises to international forums while connecting international opportunities, resources and values to serve the country’s development.

VCCI will also continue to promote its role as the representative of the Vietnamese business community in regional and international cooperation mechanisms; actively participate in preparations for APEC Year 2027, to be hosted by Viet Nam; while strengthening business connectivity and promoting trade, investment, innovation and sustainable development.

With coordinated efforts among Party external relations, State diplomacy and people-to-people diplomacy, with economic diplomacy serving as an important pillar, Viet Nam will be better positioned to leverage its combined strength, expand its development space, enhance national competitiveness and build a self-reliant and deeply integrated Vietnamese business community with strong competitiveness and an increasingly elevated position in the global economy.

This is also a practical way to promote the pioneering role of Viet Nam’s external relations, transform the outcomes of diplomacy into drivers of development, and contribute to realizing the goal of building a rapidly developing, sustainable, self-reliant and prosperous Viet Nam in the new era.