Hanoi (VNA). Vietnam has become a major supplier to global agricultural and forestry markets, but its export strength has yet to match its market position, as much of the value added, technology, branding and decision-making power remains outside the country. The country aims to move beyond production advantages and gain greater control over value chains.
Wood, coffee, rubber, pepper and rice have established Vietnam’s presence in international markets. Businesses are shifting towards higher-value processing and branded products, but many remain concentrated in manufacturing and raw material exports.
Vietnam participates in international organisations covering key industries, including the International Coffee Organisation, the International Tropical Timber Organisation and the Association of Natural Rubber Producing Countries. However, its production scale has yet to translate into control over higher-value segments. Technology, brands, standards, data and market decisions largely remain in foreign hands.
The wood industry illustrates this gap. In 2025, exports of wood and wood products reached around 17.2 billion USD, making Vietnam one of the world’s five largest exporters, the largest in Southeast Asia and the second largest in Asia.
Nguyen Quoc Khanh, Chairman of the Vietnam Timber and Forest Products Association, said the industry remains largely at the final stage of the value chain and operates mainly under the original equipment manufacturing, or OEM, model rather than original design manufacturing, ODM, and original brand manufacturing, OBM.
Dependence on foreign partners’ orders and designs limits domestic businesses’ ability to develop products, build brands and determine their own market strategies.
Coffee faces a similar challenge. Vietnam is a global powerhouse in robusta production and exports, but Thai Nhu Hiep, Vice Chairman of the Vietnam Coffee and Cocoa Association, said the country is better known for output than for quality capable of shaping the market.
To turn quality into bargaining power, the industry needs consistent standards for production inputs, growing areas, traceability, data transparency and sustainability. Requirements under the EU-Vietnam Free Trade Agreement and the European Union Deforestation Regulation should help build these capabilities rather than serve merely as compliance obligations.
In the rubber sector, Vietnam remains heavily reliant on raw latex exports despite its position as a major natural rubber producer. Nguyen Viet Tuong, former Vice Chairman of the Vietnam Rubber Association, said the industry must shift from selling raw materials to higher-value products supported by technology, data and standards.
This requires stronger links among processors, traders, smallholder farmers, research institutes, universities and financial institutions. Major companies can lead technological development and cooperate with foreign-invested enterprises to produce higher-value rubber products, while farmers adopt sustainability, emissions reduction and circular economy practices.
Across these industries, production capacity alone does not confer market power. Greater influence depends on mastering value-generating activities, including technology, design, branding, standards, data and market forecasting.
Khanh called on the wood industry to develop five-to-10-year strategies, strengthen design and branding, apply artificial intelligence and advanced manufacturing technologies, and expand cooperation with foreign-invested businesses and regional partners.
Le Anh Dung, General Director of Vietnam National Vegetable, Fruit and Agricultural Product Corporation, also highlighted growth potential in fruits, vegetables, processed foods and other products. He said diversification could help businesses adapt to trade fluctuations.
Vietnam must ensure its exports carry not only advantages in volume and cost but also domestic technology, standards, brands and innovation. By mastering these capabilities and helping shape market standards, Vietnamese businesses can strengthen their influence in global value chains.
Sources: VietnamPlus / Vietnam News Agency
