Vietnam’s Industrial Renaissance: A Closer Look at Key Sectors
Vietnam is experiencing a remarkable transformation in its industrial landscape, with national success in industrial production setting the stage for local companies to shine in various sectors. Notably, the automotive, food, and metallurgy industries are emerging as significant contributors to the nation’s economic growth.
The Automotive Sector: Rising Giants
Among the frontrunners in the automotive production and assembly sector are notable players such as VinGroup, Truong Hai, and Thanh Cong. These companies represent the ambitious push of Vietnam to not only assemble vehicles but also manufacture components locally. Their strategic investments enable them to not only compete efficiently in the domestic market but also carve out a place in international markets.
VinGroup has made headlines with its ambitious plans, including the launch of VinFast, which aims to produce electric vehicles tailored to global audiences. Similarly, Truong Hai has established itself as a leader by partnering with international brands to boost local production capacity and expertise.
A Flourishing Food Sector
Shifting gears to the food industry, companies like Vinamilk and TH Group are making significant strides in milk production and food processing. Vinamilk, as one of the largest dairy companies in Vietnam, has built a robust brand synonymous with quality and innovation. On the other hand, TH Group is known for its organic products and its commitment to sustainability, appealing to a growing consumer base that values health and environmental conservation.
The Metallurgy Sector and Emerging Leaders
In the metallurgy sector, several key players such as Hoa Sen Group, Hoa Phat Group, and Nam Kim Steel are leading the charge. These companies are vital in supplying domestic and international markets with high-quality steel and metal products. Their continued investments in technology and production methods position them well to meet the rising demand in construction and manufacturing sectors both locally and abroad.
A National Strategy for Industrial Growth
Guided by the Vietnam Industrial Development Strategy until 2025, with a vision for 2035, the country is on a path of significant industrialization and modernization. By achieving various milestones, Vietnam’s industries now account for over 30% of the country’s GDP from 2016 to 2019, underscoring the importance of industrial output in the economic landscape. Moreover, the industry has emerged as the largest contributor to the state budget, reflecting a robust framework for future growth.
Shifting Industry Structure: Embracing Change
Recent years have seen positive changes in the structure of industries within Vietnam, with a noticeable increase in the proportion of processing and manufacturing industries. This shift signifies a decreasing reliance on the mining sector and a growing emphasis on sectors that add value through processing. Notably, areas such as electronics, textiles, leather-footwear, and food processing have experienced exponential growth.
Export Excellence: A New Era for Vietnam
As a result of these industry changes, Vietnam has become an export powerhouse, with industrial products accounting for a staggering 90% of the country’s total export turnover between 2006 and 2016. Key export items, including leather, footwear, textiles, and electronics, have achieved high rankings both regionally and globally, showcasing the competitive edge of Vietnam’s industrial capabilities.
Thriving Private Industrial Groups
The rise of private industrial groups is a testament to the country’s increasing competitiveness in domestic and international markets. The formation and growth of these companies, characterized by their large scale and innovative approaches, are vital for sustaining economic momentum. They not only drive innovation but also create jobs and enhance the overall industrial proficiency within Vietnam.
Future Outlook: A Bright Horizon
With a clear strategic direction and a commitment to modernizing its industrial base, Vietnam is poised to leverage its strengths in these key sectors. The dynamic landscape reflects not only national ambitions but also the resilience and adaptability of local companies eager to make their mark in the global arena.