CMC Chairman Nguyen Trung Chinh: Large Enterprises Must Lead for Vietnam to Break Through in Global Value Chains

On the afternoon of October 2, 2025, in Hanoi, within the framework of the 3rd Vietnam New Economy Forum (VNEF) themed “Vietnam’s Economic Momentum: From Internal Strength to Global Value Chains”, Mr. Nguyen Trung Chinh – Chairman of CMC Corporation shared many significant perspectives at the panel discussion “Solutions to Strengthen Internal Capacity, Develop New Economic Models, and Enhance Position and Value in Global Supply Chains”.

The event was co-directed by the Central Policy and Strategy Committee and the Vietnam Economic Science Association; coordinated by the Institute of Policy and Strategy Research, Department of General Economics, and Vietnam Economic Times/VnEconomy. The panel featured leaders of major corporations such as Hoa Phat, Vinatex, CMC, CT Group, Grab Vietnam, Vietravel, and leading financial and economic experts.

Panel discussion “Solutions to Strengthen Internal Capacity, Develop New Economic Models, and Enhance Position and Value in Global Supply Chains” at the Vietnam New Economy Forum (VNEF) 2025.

Clear Policies, the Key is Fast Implementation

Speaking at the forum, Mr. Nguyen Trung Chinh, Chairman of CMC Corporation said that Resolution 57-NQ/TW, which focuses on science, technology, digital transformation, and innovation as breakthrough drivers, along with Resolution 68-NQ/TW, which affirms the private sector as the most important engine of the economy, is the answer to the question: “How do we change the country?”

“Clearly, change can only come through new approaches, where science, technology, digital transformation, and innovation must become the core drivers – addressing key issues such as labor productivity, added value, and enhancing endogenous capacity for Vietnam to participate more deeply in global value chains,” the CMC Chairman emphasized.

He added that since the adoption of the four cornerstone resolutions (57, 59, 66, 68), technology enterprises like CMC have been very encouraged. Now, with two new resolutions – 71 and 72 – forming a so-called “six-pillar resolution framework,” Vietnam has a comprehensive policy system reflecting the strategic vision of the Party and the State. “The challenge today is no longer about direction, but about how to implement these policies quickly and effectively,” Mr. Chinh stated.

Overview of the 3rd Vietnam New Economy Forum (VNEF) with the theme “Vietnam’s Economic Momentum: From Internal Strength to Global Value Chains.”

Large Enterprises Must Act as “Locomotives”

In countries like China and South Korea, large enterprises often play the role of locomotives, leading and pulling smaller companies forward.

In Vietnam, however, small and medium-sized enterprises still face many difficulties; relying solely on interest subsidies or preferential incentives is insufficient. Vietnam needs strong leadership from large enterprises to create breakthroughs for the entire ecosystem.

“Moreover, India’s lesson is worth reflecting upon: from being an outsourcing nation, it has risen to become an IT powerhouse. What does this mean? The outsourcing phase is not inherently negative, but the crucial point is to transform – from being a hired worker to becoming an owner,” Mr. Chinh shared.

In the development journey, added value lies in knowledge, branding, and creativity. These are precisely what Vietnamese enterprises still lack, particularly the “brand” factor.

China significantly shortened its outsourcing phase and moved straight into developing products and building global brands. Vietnam, too, must aim to master technology, create intellectual products, and establish internationally recognized brands, rather than remaining stuck in the role of “the hired worker.”

Mr. Nguyen Trung Chinh, Chairman of CMC, at the 3rd Vietnam New Economy Forum (VNEF) with the theme “Vietnam’s Economic Momentum: From Internal Strength to Global Value Chains.”

he “Trap” of Measuring Added Value

“When CMC introduced its AI technology in Japan in 2024, many partners were surprised and admitted it was the first time they realized that Vietnam also had a company developing AI. This proves that with knowledge, we can absolutely build value and affirm our position with international peers,” Mr. Chinh recalled, expressing his optimism about the future development of Vietnam’s technology enterprises.

However, the CMC Chairman also warned about the “trap” of measuring added value in industries.

For example, in the textile and garment industry, he argued, focusing on producing raw materials merely to raise the domestic content ratio in the value chain is misguided. It risks causing pollution while adding little real value. Instead, Vietnamese companies should invest in building global-scale brands.

Similarly, in measuring the added value of the digital economy, one cannot simply look at the high proportion of imported hardware to conclude that the sector generates low added value.

Vietnam currently ranks 5th in the world in software production and 3rd in software exports, just behind China and India. This affirms that Vietnam has a strong foundation and potential in technology.

“Vietnam’s position today is vastly different from 30 years ago,” Mr. Chinh stressed.

“CMC started with outsourcing and learning technology, but today, we have tech products ranked among the Top 12 worldwide by the American National Standards Institute. We have also implemented digital transformation for leading Japanese corporations such as Honda, helping them revamp their design processes and increase productivity by up to 30%. This is clear evidence of Vietnam’s technological capabilities and potential,” he emphasized.

Artificial Intelligence, he added, is expected to generate up to USD 15.7 trillion in added value for the global economy by 2030. This reflects AI’s vast potential in optimizing processes, improving labor productivity, and driving global economic growth. By 2035, AI is forecast to boost productivity by 40%.

“AI is not only for tech companies. Any business or individual can leverage it to enhance productivity and create new value,” Mr. Chinh concluded.