Vietnam is stepping up in the global market

It was JT Von Lunen, president of RMUS, one of the largest drone distributors in the U.S., who came bearing good news.

For the past three years RMUS has distributed RtR's Hera drone in the U.S. and other countries. Earlier this year RMUS introduced Hera to Linebird, a U.S. company specializing in high-voltage power line inspections. Hera passed testing and met Linebird's requirements.

Now, with Lunen returning to the U.S., discussions will continue on a potential purchase deal. RMUS has already supplied Hera to several clients, with products from RtR accounting for an estimated 30% of its sales in the U.S. and Canada.

RtR CEO Luong Viet Quoc explained to me that U.S. power lines require regular inspections for safety. Technicians once had to navigate rough terrain on foot to reach the power lines, but drones have made the job easier, faster, and more efficient. However, inspecting power grids requires four specialized cameras, some of which are heavy. Not all drones can handle such a load or have the necessary space to carry the equipment.

Hera stands out for its high payload capacity and ability to collect all necessary data in a single flight. It can also operate reliably in harsh weather conditions, including storms and temperatures as low as minus 30 degrees Celsius.

Dr. Luong Viet Quoc (L) presents Hera drone at the Vietnam International Defense Expo in Hanoi in 2022. Photo by VnExpress/Gia Chinh

I have known Quoc for years. He grew up in a poor family in Quang Nam in central Vietnam, got a PhD in economics in the U.S., and returned to Vietnam to launch a startup.

His team of 60 engineers, all trained domestically, have built drones of exceptional quality. After Hera won an award in a Ministry of Public Security competition for firefighting and rescue equipment, domestic emergency response units quickly started using it. Now, this "made in Vietnam" product is making its way onto the global stage, showcased at international drone and technology exhibitions.

According to Lunen, many RMUS clients discovered Hera through these events.

Quoc's success and Hera's global recognition hold deep significance for me. Nearly 30 years ago we launched the "Vietnamese High-Quality Goods" program to encourage consumers to prioritize local products and help domestic businesses compete at home.

But that is no longer enough.

Vietnamese companies must now focus on winning over foreign buyers.

With Vietnam fully integrated into the global economy, domestic markets have become international battlegrounds. This means Vietnamese manufacturers must prepare to compete against bigger, more global companies from the moment production begins. The transition is neither easy nor quick.

Unlike in the past, when patriotism could rally Vietnamese consumers to support local brands, today's global competition is tough but fair. Quality is everything.

So, how can Vietnamese companies compete internationally?

I ask this question whenever I meet successful entrepreneurs.

Recently I spoke with Diep Nam Hai, CEO of Cholimex Food, a Vietnamese company that produces and exports sauces, snacks and seasonings, many of which are on supermarket shelves in 30 countries. His answer was simple: never compromise on quality.

"If a customer buys our product 100 times and finds it lacking even once, we are done for," he said.

Technology is an even greater challenge. Unlike food and agriculture, where Vietnam has long had an advantage, high-tech industries require heavy investment, and the market is already dominated by wealthier nations.

But Quoc believes even the best products can always be improved.

"If you create something better than the best, it will have value and can compete globally," he says.

His strategy? Invest big in R&D and foster Vietnamese innovation, even in cutting-edge industries.

This reminds me of a story from Pham Trong Chinh, a market expert at the High-Quality Vietnamese Goods Business Studies and Assistance Center. He has a friend working for a financial institution in Singapore, a country leading Southeast Asia in AI development.

But like China, Singapore also faces a shortage of AI talent, which meets less than half of its demand.

To address this, it has launched aggressive global recruitment efforts, targeting talent from the U.S., Europe and Asia.

When Chinh asked if Vietnamese professionals were on their radar, his friend answered, "Of course."

His friend explained that in the past two years Vietnam has emerged as a serious AI contender.

Though still in its early stages, the country's commitment to high-tech development has caught Singapore's attention.

They see Vietnam as a future competitor, already investing in AI training and expecting to reap results.

Singapore is preparing to compete against Vietnam in the next five to 10 years. Analysts also recognize Vietnam's strong math foundation and large pool of students excelling in science. With the right support, these talents could lead the industry.

Like many others, I have concerns about Vietnam's ambitious 8% growth targets and its push for double-digit expansion in the coming years.

But if there's a path forward, it lies in Vietnamese ingenuity—creating products that are better than the best.

*Vu Kim Hanh is the president of High-Quality Vietnamese Goods Business Studies and Assistance Center and initiator of the "Vietnamese High-Quality Goods" program.