Are you looking for employment or investment opportunities in the manufacturing industry in Vietnam? Then please refer to the 15 popular industrial groups of Vietnam manufacturing industry through the following article by Ms. Uptalent to see the potential and development opportunities of this industry more clearly.
1- Textile industry
Fork textile Vietnam currently has three main sub-sectors: yarn production, fabric production and dyeing, and clothing production.
Fiber and fabric products are produced primarily for domestic consumption and are of poor quality. Meanwhile, the garment manufacturing sub-sector is mainly cutting and sewing (CMT), the ratio of original garment manufacturers (OEM) and original design manufacturers (ODM) is very low, only about 35%.
Vietnamese textile and clothing products are mainly exported to the American, European, Japanese and Korean markets. The majority of textile and clothing export turnover will come from these markets.
A persistent paradox in the textile industry is that Vietnam has great potential in cotton cultivation and production, but must import most cotton materials from abroad.
2- Machinery, equipment and mechanical manufacturing industry
Vietnam’s machinery and mechanical manufacturing industry is highly valued. Experts predict that in the coming years, Vietnam will become one of the potential production bases in Asia.
Additionally, demand for machinery and equipment for other manufacturing industries is expected to continue to rise sharply in the coming years.
On the other hand, the Vietnamese government is very interested in developing domestic machinery and equipment manufacturing activities. Many open policies aimed at attracting investments have been developed and put into practice. Thanks to this, many companies have set up factories in Vietnam and the demand for production processing continues to increase.
3- Electronics industry
It is an industry of great importance to the development of science and technology. It helps people maximize their systems thinking ability by designing and creating new products with many benefits and superior functionality.
Currently, Vietnam’s electronics industry is dominated by foreign companies. Although the number of foreign enterprises accounts for only about one third of the total number of electronic enterprises, the proportion of export turnover accounts for more than 90%, and they meet 80% of consumer demand national.
Many large foreign companies and electronics companies have transferred all or part of their production to factories in Vietnam. For example, LG and Panasonic have relocated all of their production to Vietnam, Apple has relocated part of the production of AirPods, Nintendo has relocated part of its Switch Lite game console,…
4- Agricultural, forestry and fishing products processing industry
The processing of agricultural, forestry and fishery products is a manufacturing subsector that contributes significantly to Vietnam’s gross domestic product (GDP).
The peculiarity of this industry is its specific distribution according to natural conditions. For example, rice in the Mekong Delta and Red River Delta, coffee in the Central Highlands, rubber in the South, pepper in the Central Highlands, vegetables in Lam Dong and the Delta of the Red River,…
The industry’s output can meet the needs of domestic consumption and exports. In the future, the role of industry will be even more important in the transition to a market economy.
5- Pharmaceutical manufacturing industry
The pharmaceutical industry focuses on the production and trade of drugs and chemicals that help prevent and treat human diseases.
In addition, pharmaceutical companies are currently promoting the research and development of many new drugs to meet the needs of users and the market.
6- Medical equipment manufacturing industry
Medical equipment manufacturing is an industry that always receives great attention from the government. Especially in the current period of many new diseases and epidemics, this industry is even more important.
Many support and incentive policies have been adopted in this area to provide favorable conditions to help enterprises promote their production and development activities.
7- Cosmetics manufacturing industry
The cosmetics manufacturing industry specializes in creating products that meet people’s beauty needs. You can see many typical products of this industry such as hair care products, face and body care products, perfumes, makeup, etc.
Cosmetics companies can both produce and sell, distribute or retail products. As noted, this industrial group is subject to continued investment and development. Thanks to this, a series of beauty products were born to meet customer needs.
8- Furniture manufacturing industry
The main task of the furniture industry is to design and manufacture furniture products to meet the living and working needs of individuals, households, businesses, organizations, etc.
The uniqueness of this industrial group is that it combines the three elements of fine arts, art and science and technology. Meanwhile, interior product design is related to architecture and graphics.
9- Shoe and sandal manufacturing industry
It is an industrial group specializing in the design, manufacturing and distribution of shoes. The strong point of this industry is that it can attract a large number of workers, create many jobs for society, earn foreign exchange income through export activities, and make an important contribution to international economic restructuring.
10- Manufacturing industry of high-tech products
This industrial group specializes in manufacturing high-tech products and providing high-tech services. It can be simply understood as an industry that combines two economic and technical factors.
The products of this industry have many modern features, high added value and above all are not harmful to the environment. Therefore, it has become one of the key factors in the modernization of existing industries and the creation of new manufacturing and service industries.
11- Energy industry
The energy industry includes two major industrial groups: the exploitation of fuels (oil, gas, coal, etc.) and the production of electricity.
According to experts, this is an industrial group that plays an important role in the national economy. It is the driving force behind the development of engineering industries, production of building materials, the economy and many other industries.
12- Mining industry
The mining industry accounts for 10-12% of Vietnam’s GDP. It provides sufficient raw materials necessary for economic sectors specialized in the use of mineral raw materials such as chemistry, metallurgy, cement, thermal energy,…
13- Chemical manufacturing industry
Vietnam’s chemical industry currently has 8 main product groups, including:
– Fertilizers and nitrogen compounds.
– Primary plastic beads and synthetic rubber.
– Basic chemicals.
– Paint and printing ink.
– Plant protection products.
– Artificial fibers.
– Chemical products not belonging to the above groups.
In particular, the fertilizer and nitrogen compounds group accounts for the highest proportion in the industry, approximately 30%. The second group is detergents. The group of artificial fibers represents only a very small proportion.
The Vietnamese chemical industry is currently in a period of strong development. The government has a separate planning project for the industry, and foreign investment capital is also continuously increasing. The development potential of the industry therefore remains very significant.
However, the Vietnamese chemical industry has many weaknesses that need to be overcome, such as:
– Strong dependence on imported raw materials. According to statistics, the proportion of imported products from the chemical industry is always in the top 10. The reason leading to the weakness of chemical raw materials in Vietnam is that the petrochemical industry is not yet developed. There is only one operating Dung Quat oil refinery in the entire country.
– The productivity of the industry is not high, the added value is low because the production technology and technical machine systems of the industry are only at an average level.
– Most domestic chemical companies are small and medium-sized. This makes it difficult for them to compete with multinational companies with strong finances, modern technology and systematic marketing strategies.
14- Printing paper and stationery manufacturing industry
It is an important industrial group in the consumer goods manufacturing industry. Currently, this industrial group is able to meet the demand of domestic consumers and plays an important role in the national economy.
However, companies operating in the industry must continue to develop, improve their competitiveness and have specific action strategies to meet the growing needs of the market.
15- Automobile and other motor vehicle manufacturing industry
This industrial group includes many small branches such as:
– Manufacture of motor vehicles intended for the transport of people and goods.
– Production of equipment and spare parts.
– Production of trailers and semi-trailers.
– Production of automobile bodies, trailers, semi-trailers and other motor vehicles.
– Production of spare parts and accessories for automobiles and other motor vehicles.
– Maintenance and repair of motor vehicles.
Above is some information about 15 popular industry groups in Vietnam’s manufacturing industry that Ms. Uptalent compiled. I hope this information will be useful to you as you seek career opportunities and business investments. Good luck!
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