Vietnam’s mechanical engineering market keeps growing

According to data from the General Statistics Office of Vietnam, in the first quarter of 2023, the import-export value of machinery, equipment, instruments and spare parts reached US$19 billion. The US was the top market with nearly US$4 billion, followed by the EU with US$1.46 billion, China with US$701 million, and Japan with US$663 million.

In 2022, the molding and precision engineering industries grew by 18 percent, capturing the interest of many domestic and foreign companies. Notably, Vietnamese molding companies make only 8.5 percent of their products with the compression molding technology, while the remainder is made with the press molding technology. Therefore, there is high demand for molds to make plastics and mechanical products, machine details and components.

MTA Hanoi helps domestic companies seek the best technical solutions for their production lines

Northern localities have attracted many foreign direct investment (FDI) projects. The capital of Hanoi is expected to be a highlight in aviation industry development. This industry remains new in Vietnam, and the country still lacks manufacturers and suppliers capable of working as original equipment manufacturers (OEMs) for airplane manufacturing companies.

In late 2022, Samsung inaugurated an 11,603sq.m research and development center in Hanoi. Samsung has invested more than US$220 million in this project. Satellite cities and provinces such as Bac Ninh, Phu Tho, Hung Yen, Hai Duong, Thai Nguyen and Hai Phong have benefited from the State’s preferential policies to attract foreign investment.

In May 2023, Hai Phong embarked on the construction of the Xuan Cau Industrial Park and Non-tariff Zone with investment of more than VND11 trillion, hoping that the project will help the city attract more investment.

Vinh Phuc Province expects that by the end of 2025, it will have had more than 50 companies eligible to become tier-1 and tier-2 suppliers for automobile, motorcycle, electrical and electronic manufacturers.

Opportunities for support industry firms

MTA Hanoi 2023 was aimed at connecting global suppliers with local companies. The event not only gave manufacturers a chance to introduce their products and technologies but also helped domestic companies seek the best technical solutions for their production lines.

William Lim, Brand Director at Informa Markets, said that engineering and manufacturing are important pillars of the Vietnamese economy. Vietnam’s stable tax policies, competitive labor costs and its participation in multilateral free trade agreements are turning Vietnam into a manufacturing hub of Asia.

In 2022, the manufacturing sector created 24.76 percent of Vietnam’s gross domestic product (GDP), with its production value exceeding VND2,300 trillion. This sector accounts for the highest percentage of the country’s total workforce. Vietnam is striving to improve the value chain of the manufacturing sector through technological innovation and research and development.

Many global technology firms and electronic component manufacturers have decided to invest in industrial parks in Vietnam’s northern region. MTA Hanoi will create opportunities for international suppliers and manufacturers in the region to meet and discuss new orders.

Nguyen Chi Sang, Vice President and Secretary General of the Vietnam Association of Mechanical Industry (VAMI), believes MTA Hanoi will contribute to promoting the sustainable development of the domestic manufacturing sector and its participation in the global market.

MTA Hanoi 2023 attracted more than 140 exhibitors from 17 countries and territories, including the US, France, Germany, Italy, Switzerland, the Netherlands, Belgium, Japan, the Republic of Korea, Australia, Singapore, China, Thailand, India, apart from domestic exhibitors.

With an exhibition area of 4,400sq.m, MTA Hanoi 2023 attracted more than 5,000 specialized visitors. Most of the visitors are business owners, management board members and senior experts having the right to make decisions in companies