Vietnam Industrial Robotics Market Outlook to 2030

Vietnam Industrial Robotics Market Overview

• In 2023, the Vietnam Industrial Robotics Market was valued at USD 286 Mn growing at a CAGR of 2.40 % between 2023-2028 driven by the increasing adoption of automation in manufacturing to enhance productivity and efficiency.
• The key players in the Vietnam industrial robotics market include ABB Ltd., FANUC Corporation, KUKA AG, Yaskawa Electric Corporation, and Mitsubishi Electric Corporation. These companies dominate the market with their advanced technological offerings and extensive service networks.
• In June 2023, ABB Vietnam presented an 8-billion-VND robot station and Robotstudio Robot Simulation Package to the International University - VNU-HCM (IU) to support their robotics education and training programs.

Vietnam Industrial Robotics Current Market Analysis

• The impact of the industrial robotics market on Vietnam's economy is profound, leading to increased productivity, higher-quality products, and the creation of high-skilled jobs. In 2023, the adoption of robotics in manufacturing resulted in substantial reduction in production costs.
• In 2020, Vietnam launched a National Digital Transformation Programme in place with a focus on digital government, digital economy, and digital society. The government has set targets to have 100% of administrative procedures available online by 2025 and to reach the top 50 in the UN E-Government Development Index by 2025.
• In 2023, Ho Chi Minh City dominates the Vietnam industrial robotics market due to city’s well-developed industrial base, extensive infrastructure, and favorable investment climate along with the presence of major industrial parks and a high concentration of manufacturing facilities.

Vietnam Industrial Robotics Market Segmentation

The Vietnam Industrial Robotics market is segmented based on various factors like Application, Robot Type and Region.

By Application: Vietnam Industrial Robotics Market is segmented by application into automotive, electronics, and food & beverage industries. In 2023, the automotive segment dominated market due to the extensive use of robotics for welding, painting, and assembly. The automotive industry's push towards automation to enhance production efficiency and reduce labor costs contributes to this segment's dominance.

By Robot Type: Vietnam Industrial Robotics Market is segmented by robot type into articulated robots, SCARA robots, and collaborative robots (cobots). In 2023, articulated robots dominated the market due to their versatility and widespread use in complex manufacturing processes. Articulated robots are favored for their flexibility and ability to perform a variety of tasks, making them ideal for automotive and electronics manufacturing.

By Region: Vietnam Industrial Robotics Market is segmented by region into North, South, East, and West. In 2023, the South region dominated the market due to its developed industrial infrastructure and high concentration of manufacturing facilities.

Vietnam Industrial Robotics Market Competitive Landscape

• Mitsubishi Electric Corp.: In May 2024, Mitsubishi Electric announced that it would acquire an 80% stake in Fuji Bakelite Vietnam Co., Ltd. to establish a new joint venture company called Mitsubishi Electric FP Automation Vietnam Co., Ltd.
• FANUC Corporation: FANUC Corporation entered into a partnership with a leading Vietnamese electronics manufacturer named VinFast in 2023, supplying over 1,000 robots for their new production facility. This deal, valued at USD 50 million, underscores the increasing adoption of robotics in the electronics sector. The partnership aims to enhance production efficiency and meet the growing demand for electronic products.
• Yaskawa Electric Crop: Yaskawa Electric Corporation introduced a new line of collaborative robots (cobots) in 2023, designed for small and medium-sized enterprises. These cobots are equipped with advanced safety features and are easy to program, making them accessible to businesses with limited technical expertise.

Vietnam Industrial Robotics Market Analysis

Vietnam Industrial Robotics Market Growth Drivers

• Increasing Automation in Manufacturing: The shift towards automation in Vietnam's manufacturing sector is driving the industrial robotics market. In 2023, over 12,000 new robots were installed in manufacturing plants, enhancing productivity and efficiency. According to the Ministry of Industry and Trade, this trend has significantly increased manufacturing output, with companies investing VND 20 trillion (approximately USD 860 million) in robotics technology.
• Foreign Direct Investment (FDI) Influx: Vietnam has seen significant foreign direct investment in high-tech industries. In 2023, FDI in the manufacturing sector reached USD 23 billion, with a notable portion for automation and robotics. Multinational companies are setting up production facilities in Vietnam, leveraging cost advantages and a skilled labor force, driving demand for industrial robots.
• Rising Demand in the Electronics Sector: The electronics sector, a major pillar of Vietnam's industrial base, is a key driver for the industrial robotics market. In 2023, the sector accounted for USD 57 billion in export value, with major electronics manufacturers like Samsung and LG increasingly adopting robotics to streamline their production processes. This demand for precision and efficiency in electronics manufacturing is boosting the market for industrial robots.

Vietnam Industrial Robotics Market Challenges

• High Initial Investment Costs: One of the primary challenges in the Vietnam industrial robotics market is the high initial investment required for robotic systems. In 2023, the average cost of industrial robots, including installation and setup, was around USD 150,000 per unit. This imortant capital expenditure is a barrier for small and medium-sized enterprises (SMEs), limiting their ability to adopt advanced automation technologies.
• Skilled Labor Shortage: Vietnam faces a shortage of skilled labor capable of operating and maintaining advanced robotic systems. A report by the Ministry of Labour, Invalids and Social Affairs in 2023 highlighted that majority of the workforce lack the necessary technical skills, creating a gap in the labour market. This shortage hampers the effective utilization of industrial robots and poses a challenge for sustained market growth.
• Integration with Existing Systems: Integrating new robotic systems with existing manufacturing processes and legacy systems is a complex challenge. In 2023, many Vietnamese manufacturers reported difficulties in integrating advanced robotics with their current infrastructure, resulting in operational inefficiencies. This integration challenge requires noteworthy time and resources, deterring some companies from investing in automation.

Vietnam Industrial Robotics Market Government Initiatives

• Automation Transformation 2023: The Vietnamese government's "Automation Transformation 2023" initiative aims to accelerate the adoption of automation technologies in the manufacturing sector. With a budget of VND 5 trillion, the initiative provides subsidies and tax incentives for companies investing in robotics.
• "Made in Vietnam 4.0" Initiative: Launched in 2023, the "Made in Vietnam 4.0" initiative focuses on promoting smart manufacturing and industrial automation. The government has allocated VND 50 trillion for this initiative, providing financial support and resources to companies embracing Industry 4.0 technologies.
• Tax Incentives for High-Tech Investments: In 2023, the Vietnamese government introduced tax incentives for companies investing in high-tech industries, including robotics and automation. These incentives include a substantial reduction in corporate income tax and accelerated depreciation for robotic equipment. This policy aims to reduce the financial burden on companies, encouraging more investments in automation technologies.

Vietnam Industrial Robotics Future Market Outlook

The Vietnam industrial robotics market is poised for remarkable growth, driven by increased adoption in agriculture, expansion of drone delivery services, and advancements in ai and sensor technology.  

Future Market Trends

• Increased Adoption of AI and Machine Learning: Over the next five years, the Vietnam industrial robotics market will see increased integration of artificial intelligence (AI) and machine learning (ML) technologies. These advancements will enable robots to perform more complex tasks and improve decision-making capabilities.
• Expansion of Smart Factories: The concept of smart factories, where machines and systems are interconnected and capable of self-optimization, will gain significant traction in Vietnam driven by the need for enhanced operational efficiency and competitiveness. This trend will be supported by investments in IoT and advanced automation technologies.