Rethinking localization measurement for industrial policy in Vietnam
Published: August 7, 2026
Abstract
This study examines the changing concept of localization amid globalization, supply-chain restructuring, and the emergence of a new generation of industrial policies. Using qualitative methods based on document analysis, policy synthesis, and comparison with international practices, the study identifies a gap between Vietnam’s industrial policy objectives and its current localization measurement system. The principal problem is not the absence of methods for calculating domestic content or domestic value added, but the lack of an integrated measurement framework designed to support policy formulation, implementation, and evaluation. The study argues that localization should be assessed not only through domestic input ratios but also through domestic value creation, supplier capabilities, technological upgrading, linkages with foreign-invested enterprises, and participation in global value chains. It proposes directions for developing a more policy-oriented localization measurement framework.
Keywords
localizationsupporting industriesdomestic value addedglobal value chainsindustrial capability
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