Future Prospects of Supporting Industries in Vietnam

1. Overview of Supporting Industries in Vietnam 

In recent years, supporting industries in Vietnam have made significant progress. The supporting industry foundation in Vietnam includes sectors such as spare parts, components, plastics, rubber materials, mechanical components, electric cables, and especially the production of molds, automobile, motorcycle, and bicycle parts. Although the number of businesses involved in the global supply chain is still limited, Vietnam has witnessed increasing participation from major groups such as Viettel, Vingroup, Thaco, and Hòa Phát in producing supporting industrial products. 

Statistics show that Vietnam currently has around 2,000 businesses producing spare parts and components, with approximately 300 businesses participating in the multinational supply chain, indicating positive growth in the supporting industry and opening up significant opportunities to increase local content and reduce reliance on imports. 

2. Key Achievements in Vietnam's Supporting Industries 

Vietnam has recently recorded remarkable achievements in the supporting industry, contributing positively to the national economy: 

• Samsung is one of the companies that has made a strong impact in Vietnam. By 2023, its four factories in Vietnam contributed nearly $71 billion, accounting for 30% of the company’s total revenue. This reflects Vietnam’s deep participation in the global supply chain, especially in electronics and mobile device production. 

• VinFast, Vietnam's automotive brand, marked a major shift from assembly to self-production and participation in the global value chain. The domestic automobile industry, particularly supporting industries, has made significant progress, with an increasing local content ratio. 

• Toyota has also trusted supporting industry suppliers in Vietnam, with five suppliers in 2020, making up 15.15% of their supply chain. 

• Furthermore, data from the General Department of Customs shows that in the first quarter of 2023, Vietnam reduced imports of some supporting industrial items, reflecting the strong development of domestic supporting industries, helping reduce dependence on imports.

3. Challenges and Obstacles for Supporting Industries in Vietnam 

Despite the significant achievements in Vietnam’s supporting industries, there are still notable challenges: 

• International Competition: Vietnam’s supporting industries face strong competition from countries with developed industrial sectors like China, Thailand, and Malaysia. Businesses must constantly strive to improve product quality and optimize production processes. 

• Lack of Skilled Labor: The shortage of skilled labor, particularly in technical and managerial fields, makes it difficult to maintain productivity and product quality in the supporting industry. 

• Supply Chain Difficulties: Incomplete infrastructure, particularly in transportation, hinders the movement of goods, materials, and the management of supply chains for businesses in the sector. 

• Complex Legal and Administrative Procedures: Complicated administrative regulations and legal procedures reduce operational flexibility in production and exports for businesses. 

4. Future Development Prospects for Supporting Industries in Vietnam 

4.1. Strengthening Supporting Industry Projects 

Vietnam is implementing several large-scale supporting industry projects, such as: 

• Bình Dương Supporting Industry Park: The largest supporting industry park in Vietnam, focusing on sectors like electronics, mechanical engineering, and machine manufacturing, with over 200 factories in operation. 

• Hòa Khánh Supporting Industry Park (Da Nang): A large-scale project attracting strong investment in mechanical engineering, electronics, and machine manufacturing sectors. 

In addition to these two large industrial parks, many other regions, such as Hai Phong, Hanoi, Ho Chi Minh City, are also developing supporting industrial parks, providing a solid foundation for the growth of supporting industries in Vietnam. 

4.2. Strong Government Support 

The Vietnamese government has implemented numerous policies to support the development of supporting industries, including infrastructure investment projects, workforce training, and tax incentives to encourage businesses in the sector. This helps businesses enhance production capacity and improve competitiveness in international markets. 

4.3. Low Investment Costs 

Investment costs in Vietnam are lower than in many other countries, especially for labor, land rent, transportation, and import-export related costs. This is a key factor attracting both domestic and foreign investors to Vietnam’s supporting industries.