This article examines the prevailing assumption by donors that connecting smallholder women to value chains will close the gender gap and empower women. Based on a case study of a programme that seeks to empower women through their integration into value chains in Vietnam, the article assesses women's empowerment across four dimensions: economic, psychological, social and political. The authors argue that women's engagement in value chains does not always financially benefit and empower women because patriarchal power structures within families, communities and businesses make it challenging for women to gain authority over production decisions in higher‐value crops. Women in the study gained more autonomy over ‘women's crops’ which yielded small incomes, while men had control over production that was seen as ‘men's work’, and in large‐scale and more lucrative production. Gendered power relations affect women's access to economic opportunities: in this context, development agencies should reconsider their approaches to women's economic empowerment by focusing on relational rather than individual empowerment. This means that women's economic empowerment programmes should involve both men and women, with targeted interventions ensuring women are empowered within the household and in their connections with the community, local authorities and businesses.