Global market diversification strategy

Geopolitical tensions, tariff policies, trade defense measures, and increasingly stringent environmental, labor, and traceability standards pose numerous risks to export activities.

Products from Dong Nai enterprises are displayed at the 2026 Vietnam Outstanding Export Products Fair.

For Vietnam, exports remain a key driver of economic growth. However, reliance on a few major markets carries numerous risks and undermines sustainability. Market diversification has therefore become an urgent priority to strengthen resilience and lay the foundation for long-term growth.

Impact of global markets

Given Vietnam’s highly open economy, fluctuations in key markets can quickly affect domestic manufacturing activities. When export orders are concentrated on a few partners, changes in import policies, tariffs, or technical standards can simultaneously affect multiple sectors. Market expansion has therefore become essential to reducing export risks.

According to the Agency of Foreign Trade under the Ministry of Industry and Trade, Vietnam’s total import and export turnover exceeded USD1 trillion in the first 10 months of 2026, up 32.3% year on year. Of this total, exports reached USD499 billion, an increase of 27.4%. These figures highlight continued improvements in the economy’s manufacturing capacity and participation in international trade. However, growth in export turnover does not necessarily mean that the export market structure is balanced, as exports remain heavily concentrated among a few major partners.

The United States (U.S.), China, the European Union, the Republic of Korea, and ASEAN remain vital markets for Vietnamese goods. These markets have large consumer bases, well-developed distribution networks and trade relationships built over many years. Maintaining a presence in these markets remains a top priority. However, if enterprises focus solely on familiar markets while delaying expansion into other regions, they will find it difficult to respond proactively to fluctuations in any particular market.

This is also an issue of concern for small and medium-sized enterprises. Nguyen Ba Cu, Director of Vinacivet Coffee Import Export and Production Trading Co., Ltd. in Thuan Loi Commune, said, "Our company's products are exported to the U.S. market. However, this market has experienced continuous volatility in recent years. Each time a new policy is introduced, we must adapt flexibly. Therefore, our company is also exploring new markets to sustain product export sales."

To support sustainable development, market diversification has become an imperative for the industry and trade sector. In the draft strategy for goods import and export through 2030, with a vision toward 2045, the Ministry of Industry and Trade sets out a target under which no single export market would account for more than 25% of total export turnover and no single import market would account for more than 35% of total import turnover. The draft also aims to keep the combined share of the three largest export markets below 55% by 2030. This strategic direction seeks to reduce market concentration gradually and develop a more balanced market structure.

Strengthening enterprise capabilities

One current limitation is the uneven ability of domestic enterprises to access markets. Many enterprises have products and production capacity but lack in-depth market information, personnel specializing in foreign trade, and experience in meeting importing countries’ legal requirements. A considerable number of enterprises still depend on intermediaries or foreign buyers to access distribution networks.

Meanwhile, trade barriers are becoming increasingly diverse. According to Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade, requirements concerning rules of origin, prevention of the circumvention of trade remedies, supply chain transparency, traceability and green standards are becoming essential conditions for goods to retain market access. This requires enterprises to develop the capacity to meet these requirements before introducing products to new markets. Every requirement, from quality standards, labeling, and quarantine and inspection requirements to certification and environmental responsibility, needs careful examination. Without proactive preparation, enterprises risk additional costs, shipment delays, or even the loss of orders when regulations change.

Alongside production capacity, market research and assessment capabilities must be incorporated into core business strategies. The Department of Industry and Trade has worked with representative import-export enterprises and industry associations to assess trade performance, enterprises' ability to take advantage of free trade agreements (FTAs), the extent to which they utilize preferential tariffs, their compliance with rules of origin, and their ability to meet technical barriers and sustainable development requirements.

Vu Ngoc Long, Member of the Dong Nai City Party Committee and Director of the Department of Industry and Trade, said that, in addition to making effective use of traditional markets such as the U.S., China, Japan, and Europe, enterprises need to expand into promising regions such as the Middle East, South Asia, Africa, and South America. This would help diversify markets, minimize risks and maintain sustainable growth.

According to experts, market diversification is also a process of enhancing competitiveness, reducing concentration risks, and enabling enterprises to take greater initiative in their commercial activities. Only when market expansion is based on product quality, branding and the ability to meet relevant standards can export growth remain stable and make a long-term contribution to the economy.

By Vuong The – Translated by Minh Hong, Thu Ha