Against the backdrop of escalating Sino-US trade frictions and the accelerated transfer of industrial chains to Southeast Asia, Vietnam has become a key market for Chinese private enterprises to expand overseas. However, in the current Vietnamese market, factors such as rising operating costs, including land rent and employee wages, and increasing regulatory compliance pressure have significantly intensified competition, and enterprises are in urgent need of building dynamic capabilities to survive. Unlike the previous dynamic capability theory that mainly focuses on developed economies, this study fills the gap in the application of dynamic capability theory in developing countries by conducting an empirical analysis of corporate practices in the complex institutional environment of developing countries and examining the context of transitional economies. The study adopted a qualitative research method and conducted semi-structured interviews with key management and business personnel of a Chinese private food processing company operating in Vietnam. The interview records were coded with the help of Nvivo, and an inductive thematic analysis was conducted using the Teece dynamic capability framework. The study found that acquiring capabilities (accounting for 41% of the coded data) was a priority for private enterprises. These measures include taking advantage of Vietnam's policy incentives (such as subsidies for local aquaculture and environmental compliance support), establishing supplier relationships with standardized Vietnamese business groups, and cultural adaptation by hiring ethnic Chinese employees. Perception capabilities (32%) focus on identifying labor cost advantages relative to China, identifying regional resource advantages (such as the suitability of aquaculture in the Mekong Delta), and monitoring infrastructure risks such as power shortages. Reconstruction capabilities (27%) emphasize labor localization (such as hiring Vietnamese sales teams and local production staff), customizing R&D according to Vietnamese consumer preferences, including product formulations for specific regions, and optimizing geographical locations by building factories near raw material production sites to reduce logistics costs while benefiting from local policy incentives. The final study shows that companies can cope with trade uncertainties and achieve sustainable development with the help of Vietnam's export facilitation policies through the systematic integration of the three elements of policy resource capture, cross-cultural adaptation, and technology localization. These insights provide practical suggestions: give priority to regions with preferential policy support, secondly, form a human resources team with both cultural understanding and local market insights, and implement targeted technology localization strategies for specific market deficiencies in the host country.

Dynamic Capability Building, Policy Capture, Localized Reconfiguration