Japan pneumatics firm SMC to start $330 mln Vietnam expansion from July

SMC Manufacturing Vietnam, under Japanese pneumatic instrument producer SMC, aims to start its $330 million expansion in Vietnam from July.

The firm received an investment registration certificate for the move in Dong Nai province earlier this month, increasing its total investment to $999.4 million.

SMC Manufacturing Vietnam started investing in Dong Nai, an industrial hub in the southern region, from 2014 and now operatesfive plants within Long Duc Industrial Park.

For its factory No.1, the expansion will produce one new item, namely thermo chillers (temperature control equipment), with an annual capacity of 11,088 items or 1,830 tons.

According to SMC’s agenda, it plans to install the equipment and process administrative procedures for the move in February-June 2025 and then start official operation from July 2025.

It will also increase the annual capacity of manufacturing items for automation systems (such as cylinders, valves, and valve assembly) to 194.3 million, equivalent to 64,800 tons, at factory No.2.

At its factory No.3, SMC plans to improve the annual capacity of manufacturing items for automation systems to 24,800 tons.

Activities at factories No.4 and No.5 are unchanged.

The enlargement aims to serve the growing market demand, SMC said.

Registered foreign direct investment (FDI) in Vietnam reached $4.33 billion in the first month of 2025, up 48.6% year-on-year, while disbursed FDI capital hit $1.51 billion, up 2%.

The biggest recipients in terms of registered FDI were Bac Ninh province with $1.39 billion (32.2%), a six-fold rise year-on-year; Dong Nai province with nearly $959 million, a 3.4-fold increase, and Hanoi with $716.4 million, up 1.9%.