Vietnam a strategic manufacturing hub in Asia amid global supply chain reshuffle: exec

Vietnam has emerged as a strategic manufacturing hub in Asia amid the substantial restructuring of global supply chains, said Dhamcharee Varaporn, managing director of RX Tradex Thailand & Vietnam, a leading exhibition organizer.

"I think the Vietnamese market is now better than ever in terms of economic growth trajectory. We have received a lot of questions from exhibitors, especially around Asia, from Japan, China, Singapore, Germany, Italy, the UK, and the US about how they can set their foothold in Vietnam, how to expand into Vietnam," Varaporn told The Investor on Tuesday.

RX Tradex Vietnam, JETRO Hanoi, and VIETRADE under the Ministry of Industry and Trade on Tuesday signed a cooperation agreement to organize the 17th Vietnam Manufacturing Expo (VME) and 11th Vietnam-Japan Supporting Industries Exhibition (SIE).

The exhibitions are scheduled to take place from August 6-8 at the I.C.E. Hanoi Exhibition Center (Vietnam-Soviet Friendship Cultural Palace) in Hanoi.

This year's exhibitions will focus on solutions which are critical to the future of Vietnam's manufacturing sector, including digital transformation, flexible automation, zero-emission manufacturing, and digital supply chains.

"2025 will be a pivotal year for Vietnamese enterprises to restructure, enhance technological capabilities, and adopt sustainable development mindsets to adapt to the new global context," Varaporn told a press meeting following the signing ceremony.

According to Vu Ba Phu, director general of VIETRADE, by the end of 2024, Vietnam's supporting industry included more than 6,000 companies in textiles, automotive assembly, leather and footwear, mechanical engineering, and electronics.

"Supporting industries have made significant contributions to the growth of Vietnam's key industries. However, the country's supporting industries still meet only about 10% of the domestic demand for components. This represents a major challenge as Vietnam imports billions of dollars of components annually," Phu told the press meeting.

"Vietnam's supporting industries must accelerate digital transformation and adopt green manufacturing practices. The application of new technologies, automation, and process optimization is crucial for enhancing productivity and meeting the increasing international quality standards," he noted.

The exhibitions will feature over 200 companies from more than 10 countries, including industrial powerhouses like Japan, South Korea, Germany, Taiwan, Singapore, mainland China, and Vietnam.

Core solutions on display include Machinery, Automation, Fastener and Fixing, Vi-Mat, Metrology, and Mold and Die. The event is expected to attract a diverse range of professional visitors from Vietnam's key sectors, including automotive, electronics, medical devices, mechanical engineering, textiles, and high technology.

Two prominent supporting industry segments - Fastener & Fixing and ViMat (Material Processing Technology) - will continue to be featured.

In addition to the exhibition area, the event is designed as a deep business matching platform with accompanying activities, including Factory Visit programs to exemplary factories; a Buyer Zone for domestic and international buyers, and a series of specialized seminars on automation and innovative factory solutions; Business Matching Zone for enterprise connections; and an Onsite Matching System to help participants find suitable partners and products, maximizing B2B meeting outcomes.

In addition to the exhibitions, the event includes thematic seminars, business-matching activities, and capacity-building training for enterprises. Notably, the "Investment Promotion in Supporting Industries" seminar will be held on August 5, 2025, in Hanoi.

Haruhiko Ozasa, chief representative of JETRO, Hanoi Representative Office, said that given the growing demand for localized supply chains and stronger bilateral connections, JETRO Hanoi has proactively collaborated with VIETRADE and RX Tradex Vietnam to establish a robust business-matching platform.

"From identifying real-world needs to creating a professional networking environment, this initiative has been realized through the 11th Vietnam-Japan Supporting Industries Exhibition (SIE), co-located with the 17th Vietnam Manufacturing Expo (VME). This dual exhibition not only expands scale but also deepens collaboration among stakeholders," Ozasa said.

VME-SIE 2025 plays a strategic role in realizing sustainable local supply chain development and expanding high-quality Japanese investment. With well-organized B2B sessions and close support from both countries' trade promotion agencies, the event contributes to attracting premium Japanese investment, he added.

This year's SIE exhibition will feature 20 Japanese buyers seeking partners in key areas such as sheet metal processing, industrial plastics, precision CNC machining, electronic components, and other supporting products. Around 20 carefully selected Vietnamese suppliers with proven production capabilities will engage in direct business matching with Japanese counterparts.”

According to JETRO's latest 2024 survey, 56.1% of Japanese enterprises in Vietnam plan to expand investment within 1-2 years, far exceeding the ASEAN average. Moreover, 50.9% intend to increase procurement in Vietnam - the highest among ASEAN countries."

Japan is among the top investors in Vietnam, particularly in the manufacturing and high-tech sectors.