Are you seeking to expand your manufacturing or tech business into Southeast Asia? Look no further than Vietnam. With its dynamic and resilient economy, Vietnam offers unparalleled opportunities characterized by its robust manufacturing capabilities, a thriving tech sector, and a wealth of government incentives. Discover why you should consider Vietnam as your next market for your business expansion.
Robust Manufacturing Capability
Strategic Location and Cost-Effective Labour
Many businesses have historically heavily relied on Chinese manufacturing due to their cost-effectiveness, but increasing geopolitical tensions in the form of tit-for-tat tariffs between the US, China, and their allies coupled with COVID-19 border closures have exposed the fragility of the global supply chain. Thus, Vietnam’s proximity to China has increased its significance as a strategic alternative for manufacturing operations; cities like Hai Phong are merely 865 km from China’s manufacturing hub of Shenzhen, reducing freight costs and minimizing supply chain disruptions for your business. Additionally, Vietnam’s minimum wages range from US$140 to US$202, approximately half of China’s wages, allowing your business to reduce overhead costs and maintain healthy margins.
Industrial Parks and Diverse Sector
Vietnam’s industrial parks offer comprehensive facilities, logistical support, and tax incentives. Located across North, Central, and South Vietnam, these parks are strategically positioned near major ports and established manufacturing plants. Key industrial sectors include:
- Garment and Textile: Vietnam is a global leader in textile manufacturing, home to around 7,000 companies employing 2.7 million people across Vietnam
- Automotive and EV Batteries: With key players like Ford, Honda, and Toyota operating plants in North Vietnam, this sector has posted 10% growth annually
- Electronics: Vietnam is home to around 2,000 companies employing 612,000 people, with notable companies like Samsung and LG establishing manufacturing hubs
- Food, Beverage, and Feed Processing: Dominated by about 5,500 companies, Vietnam is a leading exporter of rice, coffee, and seafood, fulfilling both local and international demand
