Vietnamese manufacturers shift toward higher value-added roles in global supply chains

Vietnamese manufacturing enterprises are undergoing a strategic shift to integrate more deeply into global supply chains. In Phu Tho province, over 500 supporting industry businesses are operating within sectors such as automotive, motorcycles, electronics, and mechanical engineering. The province hosts 752 active FDI projects with a total registered capital of 15.3 billion USD, including major corporations like Honda, Toyota, Piaggio, Compal, BYD, and Meiko.

Despite this presence, domestic enterprises face challenges in supplying FDI blocks directly. Many local firms are small-scale and limited to simple processing tasks, facing hurdles such as high capital costs, land lease issues, logistics, and low investment efficiency due to underutilized machinery. A lack of Research and Development (R&D) capacity often results in low profit margins.

To address these gaps, there is a broader movement within the Vietnamese mechanical engineering sector to transition from Original Equipment Manufacturing (OEM) to Original Design Manufacturing (ODM). This shift aims to move beyond pure processing toward mastering design and increasing value-added capabilities. Industry events like MTA Hanoi 2026 are expected to serve as strategic platforms for businesses to access new technologies and foster B2B cooperation to navigate these global supply chain shifts.