Vietnam advised to prioritise high-value tech links to strengthen global supply chain position

The expert said Vietnam should be particularly wary of what he described as the "technology protectionism trap" - investing heavily in developing products that serve only the domestic market but lack the competitiveness to succeed on the international markets.

Workers produce electronic components at Star Engineers Vietnam Company, Binh Xuyen I Industrial Park in Phu Tho province (Photo: VNA)
Workers produce electronic components at Star Engineers Vietnam Company, Binh Xuyen I Industrial Park in Phu Tho province (Photo: VNA)

Paris (VNA) – Vietnam should focus resources on sectors where it can become indispensable in the global technology supply chain rather than trying to replicate products already dominated by global giants, a Vietnamese technology expert in France has said.

In an interview granted to the Vietnam News Agency (VNA)’s correspondent in France, Dr Ta Anh Phuong, Co-Founder and CEO of Seinetime, said as Vietnam moves to develop 10 strategic technology groups and 30 priority technology products, the biggest challenge for the country is no longer deciding which technologies to develop but determining how to allocate limited resources effectively to create products that can compete internationally.

The expert said Vietnam should be particularly wary of what he described as the "technology protectionism trap" – investing heavily in developing products that serve only the domestic market but lack the competitiveness to succeed on the international markets.

Experiences from many countries, Phuong said, showed that attempts to build full-fledged alternatives to the world's leading technology companies often result in high costs, rapidly outdated technologies, and limited export potential.

Against the backdrop of an increasingly specialised global technology value chain, no country can realistically master every segment of the technology ecosystem, he said.

Instead of asking how many technological products Vietnam can produce, policymakers should ask whether those products offer enough unique value for international markets to choose them. From that perspective, Phuong suggested Vietnam concentrate on sectors capable of creating "irreplaceable" value within global supply chains.

According to the expert, one promising advantage lies in Vietnamese-language data and datasets specific to Vietnam and Southeast Asia – areas where global technology companies do not yet hold overwhelming advantages. Developing artificial intelligence (AI) models tailored to the Vietnamese language and regional needs could enable Vietnam to build distinctive products rather than compete head-on with well-established global platforms.

He also proposed Vietnam develop capabilities in technology testing, certification and standardisation for the ASEAN market. If done effectively, Vietnam could become a regional hub for technology assessment, inspection, and quality certification, thereby establishing a valuable position within the regional technology ecosystem.

Another strategic direction would be to develop products with high switching costs for customers. Phuong noted that software and technologies deeply integrated into businesses' operations, equipment or management systems tend to create more sustainable competitive advantages than products that can easily be replaced.

Regarding Vietnam's newly announced list of 30 strategic technology products, Phuong said the greatest risk is spreading resources too thinly. Even advanced economies cannot invest equally across every technology sector, he said, recommending Vietnam to concentrate most resources on a number of areas capable of generating the strongest spillover effects over the next 3–5 years.

Priority areas, he suggested, should include Vietnamese large language models and specialised AI systems, cloud computing platforms, cybersecurity solutions for critical infrastructure and national databases, edge AI for smart manufacturing, blockchain for supply-chain traceability, energy storage batteries, high-efficiency electrical equipment, and specialised semiconductor chips. These sectors combine strong market demand with Vietnam's existing capabilities while offering significant long-term value creation, Phuong said.

Beyond technology priorities, the expert stressed the importance of data sovereignty as Vietnam is accelerating digital transformation and implementing the 2024 Archives Law. National digital archives should not follow a one-size-fits-all model. Instead, data should be classified according to sensitivity in order to establish appropriate governance mechanisms.

According to the expert, highly classified data related to national defence and security, senior leaders, and the operations of the state apparatus should be stored on domestic infrastructure, either fully isolated or nearly isolated from the Internet. Sensitive data such as population records, taxation, healthcare and judicial information could be managed through hybrid cloud systems, provided that Vietnam retains control over the original data and, more importantly, the encryption keys.

Control over encryption keys matters more than the physical location of servers because data sovereignty also depends on software, system administration rights, encryption mechanisms and the legal jurisdictions governing service providers, he stressed.

Phuong also warned of technical risks in digitising archival records, including metadata leaks, inadequate mechanisms to ensure data integrity, weak administrator account management and vulnerabilities arising during optical character recognition (OCR). If left unaddressed, these issues could undermine both the legal validity and long-term reliability of Vietnam's national digital archive system, he said.

Vietnam has a significant opportunity to upgrade its position in the global technology value chain. However, the expert said advantages will not belong to countries that try to do everything. In an increasingly specialised technological world, success will come to those that choose the right priority areas, concentrate resources on high-value segments, and create products that the market truly needs.

Vietnam should strive to become an indispensable link in the international technology ecosystem – the most effective way to avoid the "technology protectionism trap" and build sustainable long-term competitiveness, Phuong concluded./.

VNA

See more

Youth union members in Bu Gia Map commune help local residents complete administrative procedures. (Photo: VNA)

Digital governance transforms life in border commune of Dong Nai city

A year after adopting the two-tier local administration model, Bu Gia Map, a remote border commune in the southern city of Dong Nai with a significant ethnic minority community, has experienced notable improvements in public administration, making digital public services more accessible to residents and boosting governance efficiency.

Individuals and organisations should strengthen data protection measures in the digital economy. ( Photo: nhandan.vn)

Experts recommend risk-based data governance to strengthen legal protection

In the first quarter of 2026, more than 6.9 million accounts were exposed, double the figure recorded in the same period last years. Stolen personal data has frequently been exploited in sophisticated online scams, particularly impersonation schemes targeting victims through fake relatives or acquaintances.

The exhibition combines digital technology, simulation models and hands-on activities to help the public gain knowledge of information security in an engaging and easy-to-understand manner. (Photo: VNA)

Interactive "Cyber Security Wall" exhibition spreads digital safety awareness in Hanoi

Through a series of display areas, visitors can explore notable scientific and technological achievements of the People's Public Security Force in safeguarding national security in cyberspace. The exhibition also provides information on common forms of online fraud and cyber scams, along with practical guidance on how to identify and prevent them.

A SMT (Surface Mount Technology) production line for electronic devices at Trung Nam EMS Factory, Da Nang High-Tech Park. (Photo: VNA)

New decree offers major incentives for high-tech R&D

The decree, which took effect on July 1, gives priority to investment in high-tech R&D, including research into innovative and core technologies; efforts to decode, master and improve high technologies; and the application, testing and refinement of advanced technologies.

The smart medical kiosk system at Hop Luc General Hospital in Thanh Hoa province makes it easier for patients to access medical examination and treatment services. (Photo: VNA)

Vietnam’s digital overhaul starts to deliver: French newswire

Inforadar noted that Vietnam has progressively streamlined its regulatory framework to clear institutional bottlenecks while putting in place mechanisms designed to spur innovation and technology adoption. The process has also pivoted from a resource-heavy approach to one focused on practical results, with stricter monitoring of projects’ progress.

Visitors experience an e-book app (Photo: VNA)

Verified subscriber data builds stronger digital shield

As Vietnam accelerates its national digital transformation, every correctly verified mobile subscription builds a more comprehensive and reliable telecom database, laying the groundwork for secure, sustainable digital services and public confidence in the country’s digital ecosystem.

A banana plantation cultivated to standardised production practices by Hung Son High-Tech Agriculture JSC in An Phu ward, Gia Lai province. (Photo: VNA)

Crop breeding innovation key to boosting agricultural productivity

According to the Plant Production and Protection Department under the Ministry of Agriculture and Environment, improved crop varieties have increased yields by 8–15%, depending on the crop, while enhancing farmers' incomes and supporting the restructuring of the agricultural sector.

Quantum technology is emerging as a strategic frontier in global science, technology and security competition. - Illustrative image (Photo: VNA)

Quantum tech seen as strategic pillar for Vietnam’s technological self-reliance

In Vietnam, the Politburo’s Resolution No. 57-NQ/TW identifies science, technology, innovation and digital transformation as breakthrough drivers of national development. In this context, the Prime Minister’s Decision No. 21/2026/QD-TTg has added cybersecurity and quantum technologies to the country’s list of 10 strategic technology groups.

A 3D mapping light show projected onto Turtle Tower, combined with a water screen system. (Photo: VNA)

Smart tourism takes hold nationwide

Under the country’s 2026–2030 digital economy and digital society development programme, the sector has been identified as one of the priority ones for accelerating digital transformation to improve governance efficiency, service quality, and visitor experiences.