Vietnam Shifts Economy from Chinese to Conglomerate Model, Boosts Industrial Chain

Vietnam’s economy has undergone rapid development in recent years, moving away from the former “cross‑the‑river‑by‑feeling‑the‑stones” approach that closely followed China toward a model that draws on South Korea’s chaebol system and emphasizes the growth of domestic private conglomerates. This shift not only reflects the diversification of Vietnam’s economy but also marks the country’s heightened focus on its position within global value chains.

Historically, Vietnam’s development strategy was described as “cross‑the‑river‑by‑feeling‑the‑stones,” meaning that the country learned from China’s economic‑development model. Under that approach, the Vietnamese government actively attracted foreign investment and promoted an export‑oriented growth trajectory. As private enterprises have become increasingly important to the economy, the government has recognized the need to develop home‑grown private groups to boost the nation’s standing in industrial chains and improve overall competitiveness.

South Korea’s chaebol model is another key reference for Vietnamese policymakers. In South Korea, a core company leads a group that controls a range of enterprises across multiple sectors. This structure enables rapid business expansion while consolidating the competitiveness of the entire value chain. Vietnamese authorities believe that adopting a similar model can help cultivate strong domestic firms, raise economic competitiveness, and enhance the country’s position in global supply chains.

The Vietnamese government is now vigorously promoting the development of domestic private conglomerates through policy measures and resource support aimed at fostering corporate growth and expansion. A suite of policies has been introduced to encourage investment in high‑value‑added sectors such as manufacturing and services. At the same time, the government is working to create a more level playing field, reducing barriers and risks that businesses may encounter.

The transformation of Vietnam’s economy carries significant implications not only for its own development but also for regional economic integration and China’s economic trajectory. Vietnam’s shift could influence China’s development model, prompting Chinese policymakers to reassess their own pathways in order to adapt to a changing regional economic landscape.

Nonetheless, the transition faces challenges and risks. Enterprises must possess sufficient resources and capabilities to succeed in expansion and development. Moreover, the government must ensure that policies are effective and equitable, avoiding the creation of new obstacles or uncertainties for businesses.

In sum, Vietnam’s economic shift underscores the nation’s emphasis on upgrading its industrial‑chain position and enhancing competitiveness. By looking to South Korea’s chaebol model, the government is actively fostering domestic private conglomerates to boost economic performance and value‑chain standing. This transformation is poised to have a considerable impact on Vietnam’s growth, regional economic integration, and China’s development outlook.

The ongoing change also signals notable progress in Vietnam’s industrialisation agenda. The government is actively advancing industrialisation by providing policy incentives and resources that encourage firms to invest in manufacturing and other high‑value‑added industries. This drive is expected to shape Vietnam’s economic trajectory and influence broader regional integration and China’s economic dynamics.

Vietnam’s industrialisation will encounter challenges such as resource constraints and policy bottlenecks. Nevertheless, the government’s continued support for manufacturing and high‑value‑added sectors aims to mitigate these risks and sustain the country’s economic momentum.

Overall, Vietnam’s economic transformation highlights a strategic focus on strengthening its position in global value chains and enhancing competitiveness. Drawing on South Korea’s chaebol experience, the government is pushing for the development of robust domestic private groups, a move that will affect not only Vietnam’s own growth but also regional integration efforts and China’s economic strategy.

(Source: Central News Agency)