Phu Tho Enterprises Overcome Trade Barriers to Expand Exports

As global trade continues to face uncertainty and importing markets impose increasingly stringent requirements on product quality, environmental protection and traceability, exporters are confronting unprecedented challenges. Rather than scaling back production or surrendering market share, many enterprises in Phu Tho Province have responded by investing in new technologies, strengthening corporate governance and steadily adapting to the evolving demands of international markets.

In previous years, exporters were primarily affected by fluctuations in raw material prices, exchange rates and shipping costs. Today, however, the greatest challenges stem from non-tariff barriers, including stricter requirements on product traceability, green production, carbon emission reduction, corporate social responsibility, occupational safety and supply chain transparency. These standards are reshaping the way businesses manufacture and compete in global markets.

Thanks to its successful adaptation to increasingly demanding international requirements, 100% of the products manufactured by Vinh Yen Footwear Joint Stock Company are exported to overseas markets.

Competing Through Innovation

Instead of taking the safer path of reducing production or focusing solely on traditional export markets, many Phu Tho enterprises have proactively modernised production lines, strengthened quality management systems, developed certified raw material areas and accelerated digital transformation in business operations.

These investments have become essential to maintaining competitiveness as international export requirements continue to tighten.

In today’s business environment, sustainable export growth depends not only on competitive pricing but increasingly on product quality, advanced technology and compliance with international standards. While these requirements present considerable challenges, they also provide opportunities for businesses to modernise and restructure.

Market developments have confirmed this trend. Companies that invested early in automation, advanced manufacturing technologies and internationally recognised management systems have continued to secure orders and, in many cases, expand into new markets. By contrast, enterprises that have been slower to modernise are finding it increasingly difficult to satisfy international customers.

One example is Vinh Yen Footwear Joint Stock Company, a well-established exporter of leather footwear in northern Vietnam. Although the company has built a strong reputation in the industry, it once faced significant challenges when international customers required digital management systems and stricter emissions control throughout the manufacturing process.

Rather than viewing these requirements as obstacles, the company invested in automated production lines, digitalised its quality management system and established a real-time product traceability platform. As a result, it not only retained its existing customers but also secured several new, higher-value supply contracts.

According to Le Thanh Thuy, Chairman of the company’s Board of Directors:

“Without change, we would certainly be excluded from global supply chains. Today, multinational corporations evaluate not only products but also a company’s management capability, environmental responsibility and operational transparency.”

The transformation extends beyond manufacturing. Agricultural processing enterprises across the province are also upgrading production systems to meet international standards. Certified raw material zones, clean production processes, QR-code traceability systems and internationally recognised certifications have become essential requirements for accessing high-value export markets.

Moving Higher in Global Value Chains

These efforts are contributing significantly to Phu Tho’s overall economic performance. During the first six months of 2026, the province maintained GRDP growth exceeding 10%, with the manufacturing and processing sector continuing to serve as the primary driver of economic expansion. At the same time, strong investment attraction and sustained industrial production have laid a solid foundation for future export growth.

As international economic integration deepens, export success is no longer measured simply by the volume of goods sold overseas. Increasingly, the critical question is where businesses position themselves within the global value chain.

Companies engaged solely in low-value contract manufacturing often struggle to achieve sustainable growth. By contrast, businesses participating in higher-value activities—including product design, component manufacturing, material supply, logistics and technical services—can generate greater returns while becoming more resilient to global market fluctuations.

Solum Vina Co., Ltd. at Ba Thien 2 Industrial Park manufactures high-tech electronic products and components for export.

This is precisely the direction many Phu Tho enterprises are pursuing.

Growing investment from major multinational corporations in electronics and high-tech industries is not only expanding the province’s manufacturing capacity but also creating new opportunities for local companies to integrate more deeply into global supply chains.

From packaging, precision engineering and plastic components to transportation, equipment maintenance and technical services, an increasing number of domestic enterprises are developing the capabilities required to become suppliers to multinational corporations.

According to Tran Quang Tuan, Director of the Department of Industry and Trade, amid continuing volatility in global trade, the province is committed to supporting businesses beyond traditional trade promotion by helping them strengthen competitiveness, develop supporting industries, accelerate digital transformation and comply with international market standards.

Alongside foreign-invested enterprises, many private businesses in Phu Tho are also reshaping their development strategies. Rather than relying solely on contract manufacturing, they are investing in research and development, registering intellectual property rights, building their own brands and making better use of the free trade agreements signed by Vietnam.

This proactive approach is gradually reducing dependence on a limited number of traditional export markets while enabling businesses to expand into larger and more stable international markets.

Although increasingly demanding global standards continue to place significant pressure on exporters, they are also serving as an important catalyst for transformation. Enterprises that embrace innovation will gain access to broader international opportunities, while those that fail to adapt risk being left behind.

For Phu Tho, recent economic achievements reflect not only the resilience of the provincial economy but also the adaptability of its business community in the face of rapidly changing global trade conditions. As international markets continue introducing new technical barriers, the province’s sustained industrial growth, investment attraction and export expansion demonstrate that its strategy of promoting higher-value industrial development and deeper international integration is delivering tangible results.

Quang Nam