Supporting industries set to drive Việt Nam's next phase of industrial growth

Supporting industries set to drive Việt Nam's next phase of industrial growth

Strengthening supporting industries is essential to enhancing Việt Nam's industrial competitiveness, increasing localisation and reducing reliance on imported inputs, officials and industry leaders said at a forum in HCM City on July 2.

Panelists at the forum "Supporting Industries in the Context of Global Supply Chain Restructuring: Strategic Positioning and Development Solutions for Enterprises" in HCM City on July 2. — Photo courtesy of ITPC

Organised by the Investment and Trade Promotion Centre of HCM City (ITPC) and the HCM City Supporting Industry Association (HASI), the forum brought together businesses, policymakers and experts to discuss ways to strengthen manufacturing capacity, deepen supply-chain integration and expand partnerships with strategic investors, financial institutions and foreign-invested enterprises.

Opening the event, ITPC Deputy Director Cao Thị Phi Vân said global supply chains are being reshaped by geopolitical tensions, strategic competition among major economies, green and digital transformation, tighter sustainability requirements and the relocation of high-tech investment.

"Supporting industries are no longer simply auxiliary manufacturing sectors. They have become the foundation for enhancing industrial self-reliance, increasing localisation, improving competitiveness and enabling businesses to integrate more deeply into regional and global supply chains," she said.

According to Vân, a sustainable industrial base cannot rely solely on assembly and processing but must gradually master the production of components, materials, technologies and quality standards while building a strong domestic supplier network.

Việt Nam continues to benefit from the global diversification of supply chains, she noted. Registered foreign direct investment (FDI) reached US$24.81 billion in the first five months of 2026, up 34.9 per cent year-on-year, with manufacturing and processing attracting $8.06 billion, the largest share of total FDI.

Meanwhile, the country's total trade reached nearly $496.7 billion as of June 15. Electronics, computers and components led exports at $63.5 billion, followed by machinery and equipment at nearly $30 billion and phones and components at $29 billion.

"These figures show that Việt Nam remains an attractive destination as global supply chains are restructured. At the same time, the country's heavy imports of components, machinery and intermediate goods highlight both the enormous growth potential for domestic supporting industries and the urgent need to strengthen local supply chains and reduce dependence on imported inputs," Vân said.

She also highlighted the Government's Supporting Industry Development Programme for 2026-35, which aims to raise average localisation rates in key industries to 40-45 per cent by 2030 and place Việt Nam among ASEAN's three most competitive industrial economies. By 2035, most supporting industry sectors are expected to achieve advanced technological capabilities and participate more deeply in global value chains.

For HCM City, the country's economic, commercial and innovation hub, developing supporting industries remains a strategic priority. The city is pursuing a growth model centred on productivity, technology, digital transformation and regional connectivity while promoting industry clusters, expanding domestic supplier networks and helping small and medium-sized enterprises (SMEs) improve production capacity and meet international standards.

Nguyễn Minh Tâm, head of the Industrial Management Division under the HCM City Department of Industry and Trade, said the city now has 105 export processing zones and industrial parks covering more than 50,000 hectares, including 58 in operation.

Supporting industries have been identified as a key pillar for strengthening industrial competitiveness and domestic production capacity, she said.

The Saigon High-Tech Park has attracted 26 supporting industry projects worth more than $512 million, while localisation has increased from about 10 per cent in 2010 to over 20 per cent.

However, imports of computers, electronic products and components still reached $6.62 billion, highlighting significant opportunities for domestic manufacturers to replace imported inputs. The ongoing "China+1" supply-chain strategy is also creating opportunities for Vietnamese companies to become second- and third-tier suppliers to multinational corporations.

Panelists at the forum "Supporting Industries in the Context of Global Supply Chain Restructuring: Strategic Positioning and Development Solutions for Enterprises" in HCM City on July 2. — Photo courtesy of ITPC

Nguyễn Ngọc Đăng Khoa, deputy director of business development at SMC Phú Mỹ Precision Mechanical Co Ltd said compliance with international standards is essential for companies seeking to join global supply chains.

In addition to widely adopted certifications such as ISO 9001, ISO 14001, ISO 45001 and the Responsible Business Alliance (RBA) standard, manufacturers increasingly need sector-specific certifications such as IATF 16949 for automotive production, AS9100 for aerospace and ISO 13485 for medical devices.

"These certifications are not simply customer requirements. They provide the framework for standardised production systems that ensure consistent product quality across different factories," Khoa said.

The forum also saw HASI sign three strategic memoranda of understanding with domestic and international partners. The agreements include cooperation with the Industrial Development Support Centre under the Ministry of Industry and Trade and the Centre for Industrial and Supporting Industries Development of HCM City to improve business competitiveness, develop industry databases and strengthen supply-chain connectivity.

HASI also signed an agreement with the Vietnamese Business Association in the Benelux to help supporting industry firms expand into European markets, while another partnership with MISA Group will support businesses in adopting digital management solutions.

During a panel discussion, participants agreed that raising the competitiveness of Vietnamese manufacturers will require stronger collaboration among SMEs, better access to financing, closer cooperation with multinational corporations, and wider adoption of digital technologies.

Experts also highlighted digital transformation, data and artificial intelligence as emerging competitive advantages that can help manufacturers improve productivity, reduce costs and meet increasingly demanding international standards. 

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