The Gateway to Southeast Asia’s Manufacturing Revolution
The world is shifting, and the global manufacturing map is being redrawn. Are you keeping up? Vietnam, with its competitive edge and strategic location, has emerged as the destination of choice for forward-thinking companies to set up manufacturing companies in Vietnam.
Giants like Samsung, Nvidia, and Tesla have already made their mark here, reaping the rewards of lower costs and greater efficiency. If you’re considering where to set up manufacturing companies in Vietnam, Vietnam isn’t just an option—it’s the opportunity of a lifetime.
This Southeast Asian nation, once overlooked, now proudly wears the crown of opportunity for industry giants. If you’re a foreign investor seeking a place to expand or set up manufacturing companies in Vietnam, Vietnam’s story will resonate deeply with you—and might even inspire action.
Why to Set Up Manufacturing Companies in Vietnam: A Strategic Move
Cost-Effectiveness Without Compromising Quality
Vietnam’s labor costs are among the most competitive in Asia. The average monthly wage for skilled workers is substantially lower than in neighboring countries like China or Thailand, making it a haven for companies looking to optimize costs. Furthermore, Vietnamese workers are highly skilled and known for their meticulous attention to detail—a critical factor for industries such as electronics, textiles, and automotive manufacturing.
For instance, companies like Samsung and Intel have invested billions USD, and set up manufacturing companies in Vietnam, citing the exceptional cost-to-quality ratio. The availability of affordable yet skilled labor enables businesses to maintain high standards without straining budgets.
Strategic Location: The Heart of Asia’s Supply Chain
Vietnam’s location is a logistical dream. Nestled in the heart of Southeast Asia, it offers easy access to major global markets. The country shares borders with China, a powerhouse in raw materials, and has modernized its ports to facilitate smooth export processes. To set up manufacturing companies in Vietnam benefit from the proximity to major shipping routes, reducing both transportation costs and delivery times.
Ports like Hai Phong and Ho Chi Minh City are increasingly becoming pivotal nodes in global supply chains. When Taiwanese suppliers relocated operations to Vietnam, it wasn’t just a geopolitical strategy—it was a logistics masterstroke.
Vietnam Government Policies: A Warm Welcome for Foreign Investors
Favorable Tax Incentives and Trade Agreements
Vietnam’s government has implemented numerous policies to attract foreign investment. Corporate tax rates are highly competitive, and special economic zones offer further reductions. To set up manufacturing companies in Vietnam would often eligible for tax holidays, import duty exemptions, and other financial perks.
Additionally, Vietnam has signed multiple free trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). These agreements eliminate tariffs on Vietnamese exports, making it a lucrative base for companies targeting international markets.
Infrastructure That Keeps Evolving
Modern Facilities and Continuous Development
In recent years, Vietnam has made massive investments in infrastructure to support manufacturing. Highways, seaports, and industrial zones have been upgraded to meet international standards. Vietnam’s industrial parks, such as VSIP and Long Hau Industrial Zone, offer state-of-the-art facilities tailored for manufacturing needs.
Foreigners to set up manufacturing companies in Vietnam benefit not only from these facilities but also from the government’s commitment to continuous development. Projects like the North-South Expressway and expanded airport capacities further enhance Vietnam’s attractiveness.
An Adaptable Workforce
A Young, Dynamic, and Educated Labor Pool
Vietnam’s population is one of its greatest strengths. Over 70% of its 100 million citizens are under 40 years old, offering a young and energetic workforce. Additionally, the country places significant emphasis on education, with a focus on technical skills and engineering disciplines.
This adaptability is why companies like Nvidia have chosen Vietnam for cutting-edge projects like AI research and semiconductor manufacturing. Skilled labor is not just an advantage—it’s a foundation for innovation.
Political Stability and Economic Growth
A Safe Bet for Long-Term Investments
Vietnam boasts one of the most stable political environments in Asia, underpinned by a government committed to economic growth and global integration. Despite global uncertainties, Vietnam’s GDP continues to grow at impressive rates, more than 6% per annum, reflecting the country’s economic resilience.
Foreigners set up manufacturing companies in Vietnam because they see a nation that combines stability with ambition—a rare and invaluable combination in today’s volatile world.
Shifting Global Trends: Vietnam as a Beneficiary
Diversification from China
Geopolitical tensions and trade disruptions have prompted many companies to diversify their manufacturing bases. Vietnam has emerged as the most viable alternative to China, offering similar benefits without the associated risks. As part of the “China Plus One” strategy, Vietnam is now home to companies like Apple, which shifted its assembly lines here, and Tesla, which sources components through Vietnamese suppliers.
The ongoing semiconductor revolution is another area where Vietnam shines. With companies like Hana Micron and Viettel committing to building semiconductor facilities, the country is not just catching up—it’s leading.
Challenges to Be Aware Of
While Vietnam offers immense potential, it’s essential to acknowledge the challenges. Regulatory hurdles, occasional infrastructure bottlenecks, and cultural differences can pose initial difficulties for foreign investors. However, these challenges are far outweighed by the opportunities, especially when you partner with local experts who understand Vietnam’s business landscape.
Future: Set Up Manufacturing Companies in Vietnam
The stories of Nvidia, Geely, and other giants illustrate a simple truth: Vietnam is no longer just an emerging market; it’s a critical player in the global manufacturing game. Whether you’re in electronics, automotive, textiles, or advanced technologies, Vietnam offers a future-proof destination for your promising plans to set up manufacturing companies in Vietnam.
Do your research, explore the opportunities, and join the ranks of global leaders thriving in this dynamic nation.
About ANT Consulting and Market Entry Services in Vietnam
ANT Consulting is here to assist you from the outset; providing intelligence, information, advisory, management or support services that assist market entrance, and ensure efficient business start-up operation.
Research Service
Company Profiling and Due Diligence
Policy and Regulatory Research
Assistance in Setting-up Business Venture
M&A Origination & Execution
For legal advise, consult with ANT Lawyers
How ANT Consulting Could Help Your Business?
You could learn more about ANT Consulting or contact our lawyers and business consultants in Vietnam for advice via email ant@antconsult.vn or call our office at +84 28 730 86 529