Manufacturing Industry Trends in Vietnam and Forecast for Acceleration

In recent years, manufacturing has been one of the key sectors, contributing significantly to Vietnam's economy. However, with deeper integration into the global economy, Vietnam's manufacturing industry is facing significant challenges. According to VnEconomy, in Q1 2025, Vietnam's export turnover declined by 11.9% compared to the same period last year, directly affecting key manufacturing sectors such as electronics, textiles, wood, and more. Furthermore, industrial production indices have dropped, making it difficult for businesses to maintain stable production. 

Additionally, competition between domestic and international manufacturers is intensifying, particularly from large corporations in developed countries such as China, Japan, and the United States. Companies in Vietnam need to continuously innovate and improve to keep up with global trends and maintain their competitiveness. Therefore, developing sustainable manufacturing industries and exploring new opportunities in regions like India, the Middle East, Eastern Europe, and Africa will be a crucial direction for growth. 

2. Positive Signals for Vietnam's Manufacturing Industry in 2025 

Despite the overall difficulties, several key manufacturing sectors in Vietnam are showing positive signs. According to a survey by the General Statistics Office at the end of 2024, industries such as pharmaceuticals, automobiles, and chemicals have experienced strong recovery. Sectors like medicinal herbs, chemicals, and food processing have seen order increases of up to 47.3% compared to the previous year. 

In addition, government policies such as tax incentives, boosting exports, and supporting reduced input material costs are creating favorable conditions for businesses to maintain stable production. Sectors like rubber, chemicals, food processing, and machinery are expected to continue thriving in 2025. 

3. Forecasted Trends for Manufacturing Acceleration in 2025 

3.1. Automation Trend in Manufacturing 

Automation in manufacturing is becoming a key factor in industries such as machinery, healthcare, agriculture, electronics, automotive, and shipbuilding. Automated production lines, especially robots and automation systems, are gradually replacing manual labor, improving efficiency and minimizing risks in production. 

Automation not only helps reduce labor costs but also improves product quality, increases productivity, and enhances competitiveness. Vietnamese manufacturing businesses are actively adopting this technology, particularly in areas with high growth potential. 

3.2. Digital Transformation Trend in Manufacturing 

Digital transformation is an essential trend for manufacturing companies in Vietnam. New technologies such as Cloud Computing, Big Data, and the Internet of Things (IoT) are increasingly being applied across industries. Manufacturing companies use these tools to optimize production management, monitor product quality, and improve supply chains. 

Digital transformation helps companies save costs, enhance production efficiency, increase flexibility, and respond quickly to market demands. This trend will be a critical enabler for companies to maintain a competitive advantage in the modern economic environment. 

3.3. Customer-Centric Manufacturing Trend 

The customer-centric manufacturing trend is important not only in services but also in manufacturing. Understanding customer needs, optimizing production processes to create suitable products, and continuously improving product quality are essential factors in manufacturing strategies. 

Customers are becoming more demanding about the quality and flexibility of products. Therefore, businesses need to focus on creating personalized products to meet the specific needs of different customer segments. This trend will continue to grow in the coming years and help businesses build customer loyalty. 

3.4. Cost-Saving Manufacturing Trend 

In the face of an economically challenging environment and high competition, manufacturing businesses need to find effective cost-saving solutions to maintain profitability. Cost-saving strategies include optimizing production processes, recycling materials, efficiently managing operating costs, and reducing capital investment in infrastructure. 

Companies that can manage costs effectively will be able to reduce product prices, increase competitiveness, and ensure profitability in a challenging economic landscape. This is particularly important for small and medium-sized enterprises in Vietnam.

4. Conclusion 

This article provides an overview of the manufacturing trends in Vietnam for 2025. Trends such as automation, digital transformation, customer-centric production, and cost-saving strategies are becoming increasingly important for businesses to maintain sustainable development. Therefore, businesses need to focus on improving production processes, adopting new technologies, and keeping up with global trends to thrive in a competitive environment.