In January, Vietnam’s manufacturing and processing industry registered US$3.09 billion in new foreign direct investment (FDI), according to data from Vietnam’s Ministry of Planning and Investment. This represents a decrease of US$2.29 billion in registered capital compared to December, which saw US$5.38 billion flow into the sector.
Vietnam’s manufacturing and processing industry is a critical pillar of its economy, contributing significantly to GDP, exports, and employment. The sector spans various industries, including electronics, textiles, footwear, food processing, and chemicals, with an increasing focus on high-tech and value-added products.
Notably, Vietnam has become one of the key manufacturing hubs in Southeast Asia, with both local and international companies establishing large-scale production facilities to cater to domestic and global markets. The presence of major multinational corporations, such as Samsung, Intel, and Nike, underscores the country’s importance in the global supply chain, particularly in electronics, apparel, and consumer goods.
The sector’s growth is supported by Vietnam’s competitive labour costs, strong infrastructure development, and trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These agreements open up access to broader markets while encouraging foreign direct investment (FDI) and technology transfer.
While the industry has seen significant growth, challenges such as supply chain disruptions, environmental sustainability, and the need for more skilled workers remain. Moving forward, the Vietnamese government is focused on further upgrading industrial capabilities, promoting innovation, and enhancing sustainability to ensure the continued success of the manufacturing and processing sector.
See also: Manufacturing in Vietnam