“Vietnamese enterprises faced a lot of challenges in 2024 and the challenges will still exist in 2025,” said Nguyen Van Minh, Director of the Institute of Training and Business Consulting under the Foreign Trade University at an online seminar on economic and investment trends in 2025.

Minh pointed out three major challenges that Vietnamese enterprises, especially manufacturing enterprises, will face this year.

“We are directly confronting a 'deluge' of high-quality and low-cost Chinese products which are seeking ways to reach the global market. China nurtures the dream of becoming a superpower and competing globally and it has powerful production capability,” he said.

“Not only Vietnam, but other countries, especially in Southeast Asia, face the problem on the Chinese path of conquering the world. Manufacturing enterprises face big difficulties and many of them may go bankrupt,” Minh said.

The second challenge is the use of technology. The technology revolution, especially digital technology and AI, has created a boom, generating immense changes, from products and services to market development and business models.

People around the world not only are talking about generative AI but also predicting that general AI may appear in 2025, which can learn the way of thinking like humans.

Talk has included the concept of the ‘multi-billion dollar business with just one worker’, which means that only one person is needed to run a business, because most tasks can be performed thanks to automation and robotics.

AI helps fintech make decisions on whether to lend money to certain borrowers. AI can also helps banks and securities companies conduct analyses of investments and make recommendations. Its enormous capability is no longer in doubt.

While enterprises all over the world are moving forward rapidly with new advanced technologies, Vietnamese enterprises are still fumbling about the paths to follow. They still are getting familiar with the ‘digital transformation’ concept, and learning what a digital model is like and how to apply AI.

These two challenges, plus the third one, the decline in domestic purchasing power, will put pressure on enterprises. Failure to change and clinging too tightly to traditional operations may lead to the risk of being eliminated.

Minh said that Vietnamese enterprises should work with Chinese enterprises and other major players to reach the world market. Once Vietnamese enterprises weather the ‘deluge’ on their path to the ‘open sea’, they will no longer be afraid of small floods.

'Narrow chink in door' and big opportunities

Predicting the global conditions in 2025, Minh said uncertainties will exist, and everything remains fragile and unpredictable. However, greater challenges can bring opportunities.

The strong currents of technology 4.0 and 5.0 are underway, potentially causing a ‘change of the guard’, i.e., changes in countries’ positions. In other words, the big countries with great advantages in older technologies in the past may not retain such advantages.

Market crises also present opportunities to engage in new business methods.

“Starting later in the race towards electric vehicles and new energy, three major Japanese carmakers, formerly direct competitors, have recently negotiated to form a new alliance to avoid the possible changes of the guard. They’ve united to find new opportunities,” Minh said.

Vietnam maintains high GDP growth rates over the years, about 6-7 percent per annum. However, Vietnam’s growth heavily depends on foreign-invested enterprises and exports, while the domestic economic sector is still facing difficulties.

Also according to Minh, significant opportunities will come to those who are brave and decisive. Yet, along with determination and intention, Vietnamese enterprises also need knowledge and thorough understanding of various fields which will help them find "narrow openings" to grasp big opportunities.

Vietnamese enterprises have many geopolitical advantages as the country has established comprehensive strategic partnerships with several countries, achieving valuable balance and stability in a world with conflict and unpredictability.

Vietnam has substantial political will to pursue a dual transformation path, making breakthrough advancements in science and technology, which are crucial for Vietnam’s plan to become a developed country.

“If Vietnamese enterprises ‘dare to play’ and can seize opportunities well, or even create opportunities, they will be able to become ‘giants’ with international stature and brands, which can lead in the ‘changing of the guard’ period."

Binh Minh