Vietnam's manufacturing embraces smart tech
Vietnam remains a country with a competitive advantage in attracting foreign investment, according to Chairman of the Vietnam Association of Foreign Invested Enterprises.
In recent years, Vietnam has emerged as an attractive investment destination for foreign investors and become an important link in the global supply chain.
Statistics show that in 2024, Vietnam's total import and export turnover of goods reached $786.29 billion, an increase of 15.4% compared to the previous year, of which exports increased by 14.3% and imports increased by 16.7%.
In exports alone, in 2024, there were 37 items with export turnover of over $1 billion each, accounting for 94.3% of total export turnover.
Specifically, the export value of the group of electronics, computers and components reached $72.6 billion, an increase of 26.6% compared to 2023, accounting for 17.9% of the total export turnover; telephones and components reached $53.9 billion, an increase of 2.9%, and machinery, equipment, tools and spare parts reached $52.3 billion, an increase of 21%.
"These data show that Vietnam is transitioning from traditional textiles, garments and footwear to high-end electronics and smart manufacturing," said Mr. Ngo Lang Van, CEO of Sunrise Big Data Co., Ltd.
According to Prof. Dr. Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), Vietnam is a country with a competitive advantage in attracting foreign investment thanks to 17 new-generation free trade agreements it has signed and its ambitious goals in transforming the growth model, perfecting institutions and policies according to international practices, and restructuring the state apparatus towards streamlining and efficiency.
"Foreign investors consider these advantages as opportunities to invest in Vietnam, and Vietnam also has the opportunity to select projects that are suitable for the Government's and local authorities' FDI attraction orientations," Prof. Mai said.
Mr. Van highlighted the emergence of production chains in Vietnam involving global leaders such as Samsung, Foxconn, and BYD in the North (consumer electronics and automotive industries) and Midea and Adidas in the South (home appliances, textiles, and garments).
However, the current shortcoming in Vietnam's industrial chains is the weak supporting capacity of the domestic supply chain, forcing businesses in the chain to import raw materials and components.
"This not only increases the costs of businesses but also reduces the flexibility and stability of the supply chain," said Mr. Van, suggesting that Vietnam needs to make more efforts in localizing supply chain services, researching and developing new materials as well as applying advanced technologies.
In this direction, he recommends that Vietnamese businesses cooperate more strongly with supply chain businesses from China, Japan, South Korea, Taiwan (China)... to upgrade smart manufacturing chains, especially those associated with semiconductors and AI digitization.
