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Technological Content of Vietnam’s Exports and Potential for Import Replacement

In: Vietnam's Economic Leap

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  • Hinh T. Dinh

    (Policy Center for the New South and Economic Growth and Transformation)

Abstract

Using the Lall classificationInternational Trade system, this chapterImport Replacement examines the technological composition of Vietnam’s exports. It finds that Vietnam’s exports are heavily concentrated in Low-Technology categories, particularly textiles, garments, and footwear. While High-Technology products such as electronics and semiconductors are increasing, Vietnam’s role in these industries remains primarily assembly-based rather than full-fledged manufacturing. This chapter distinguishes between traditional import substitution and strategic import replacement, advocating for the latter. This chapter identifies specific products across various categories—including electronics, machinery, and chemicals—that Vietnam could potentially produce domestically to reduce import dependence and enhance industrial capacity. This approach focuses on developing comparative advantages in sectors requiring moderate capital investment and skilled labor, rather than imposing protectionist measures.

Suggested Citation

  • Hinh T. Dinh, 2025. "Technological Content of Vietnam’s Exports and Potential for Import Replacement," Springer Books, in: Vietnam's Economic Leap, chapter 5, pages 115-158, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-08904-5_5
    DOI: 10.1007/978-3-032-08904-5_5
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