Vietnam Industrial Component Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Vietnam Industrial Component Market Overview

• The Vietnam Industrial Component Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by the rapid expansion of the manufacturing sector, increased foreign direct investment, the rising demand for electronic components in various industries, and the shift toward high-tech manufacturing including semiconductors, 5G integration, and electric vehicles. The market has seen a significant uptick in the production of integrated circuits and other electronic components, which are essential for modern technology applications.
• Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their robust industrial infrastructure, skilled workforce, and proximity to major transportation hubs. These cities attract numerous multinational corporations and local manufacturers, fostering a competitive environment that drives innovation and efficiency in the industrial component sector.
• The Decree 32/2024/ND-CP issued by the Government of Vietnam in 2024 streamlines industrial cluster development and prioritizes investment in high-tech sectors including industrial components manufacturing. This regulation offers tax reductions, import-duty exemptions, and accelerated depreciation for high-tech projects, requiring compliance with standards for clean and high-value production to enhance local capabilities, reduce import reliance, and support advanced technology adoption.

Vietnam Industrial Component Market Segmentation

By Type:The market can be segmented into various types of industrial components, including Integrated Circuits (ICs), Discrete Semiconductors, Optoelectronics, Sensors & MEMS, Passive Components, Electromechanical Components, and Printed Circuit Boards (PCBs). Each of these subsegments plays a crucial role in the overall market dynamics, with specific applications across different industries.

By End-User:The end-user segmentation includes Automotive, Electronics & Foundry, Construction, Aerospace and Defense, and Others. Each of these sectors utilizes industrial components differently, with varying demands based on technological advancements and market trends.

Vietnam Industrial Component Market Competitive Landscape

The Vietnam Industrial Component Market is characterized by a dynamic mix of regional and international players. Leading participants such as Intel Vietnam, Samsung Vietnam, Amkor Technology Vietnam, FPT Semiconductor, Viettel High Tech, Marvell Technology Vietnam, Siemens Vietnam, Schneider Electric Vietnam, ABB Vietnam, Bosch Vietnam, Mitsubishi Electric Vietnam, and Rockwell Automation Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Industrial Component Market Industry Analysis

Growth Drivers

• Increasing Industrialization:Vietnam's industrial sector has seen a significant boost, with the manufacturing output reaching approximately $120 billion in the future. The World Bank projects that industrialization will contribute to a GDP growth rate of 6.6% in the future. This growth is driven by the establishment of industrial parks and zones, which have increased from 300 in the past to over 400 in the future, attracting both domestic and foreign investments, thereby enhancing the demand for industrial components.
• Government Infrastructure Investments:The Vietnamese government has allocated around $30 billion for infrastructure development in the future, focusing on transportation and energy sectors. This investment is expected to create a robust framework for industrial growth, facilitating smoother logistics and supply chain operations. The construction of new highways and ports is projected to increase the efficiency of industrial component distribution, further stimulating market demand and attracting foreign direct investment (FDI).
• Rising Demand for Automation:The automation market in Vietnam is projected to reach $2.5 billion in the future, driven by the need for efficiency and productivity in manufacturing. As companies increasingly adopt automated solutions, the demand for advanced industrial components, such as sensors and robotics, is expected to rise. This trend is supported by the government’s initiatives to promote Industry 4.0, which aims to modernize manufacturing processes and enhance competitiveness in the global market.

Market Challenges

• Supply Chain Disruptions:Vietnam's industrial component market faces significant challenges due to supply chain disruptions, exacerbated by global events such as the COVID-19 pandemic. In the future, approximately 60% of manufacturers reported delays in component deliveries, impacting production schedules. The reliance on imported raw materials, which accounted for 40% of total inputs, further complicates the situation, leading to increased costs and reduced competitiveness in the market.
• High Competition:The industrial component market in Vietnam is characterized by intense competition, with over 1,000 registered manufacturers as of the future. This saturation has led to price wars, reducing profit margins for many companies. Additionally, the entry of foreign firms, which often bring advanced technologies and better quality products, poses a significant threat to local manufacturers, compelling them to innovate continuously to maintain market share.

Vietnam Industrial Component Market Future Outlook

The future of the Vietnam industrial component market appears promising, driven by ongoing industrialization and government support for infrastructure projects. As the country embraces digital transformation, the integration of IoT and smart manufacturing technologies is expected to enhance operational efficiency. Furthermore, the focus on sustainability will likely lead to increased investments in green technologies, positioning Vietnam as a competitive player in the global industrial landscape while addressing environmental concerns.

Market Opportunities

• Growth in Renewable Energy Sector:The renewable energy sector in Vietnam is projected to attract $20 billion in investments in the future. This growth presents significant opportunities for industrial component manufacturers to supply equipment for solar and wind energy projects, which are expected to generate 30% of the country’s energy in the future, thus driving demand for innovative components.
• Adoption of Smart Manufacturing:With the Vietnamese government promoting Industry 4.0, the adoption of smart manufacturing technologies is set to rise. In the future, investments in smart factories are expected to reach $1 billion, creating opportunities for suppliers of automation technologies and IoT devices. This shift will enhance productivity and efficiency, positioning companies favorably in the competitive landscape.