The manufacturing industry in Vietnam has a lot of potential to attract domestic and foreign investors. In order to grasp the win when investing, businesses need to understand the potential, pros and cons of manufacturing in Vietnam and have the right and effective development strategies.
The trend of the manufacturing industry in Vietnam in the coming time
The manufacturing industry in Vietnam is expected to continue to thrive in the coming years. Some experts have predicted the trend and potential of the manufacturing industry in Vietnam in the future:
– Promoting industrial production 4.0: The government encourages businesses to digitally transform through the construction of technical infrastructure systems: data, software, and network links, helping to apply modern technology to increase productivity, improve product quality, and reduce production costs.
– Strengthening competitiveness: Vietnamese enterprises are increasingly investing in science and technology and the expertise of human resources to improve production capacity and product quality.
– Investment in green industries: Vietnam manufacturing hub identifies the green economy as a driver of long-term development. Therefore, the government is actively attracting FDI projects to the green field to ensure the common goal of the country.
– Strengthen cooperation with international partners: With FTAs, it is easy to see why foreign enterprises would manufacture in Vietnam to expand their markets, gain access to new technologies and capital sources, and increase their competitiveness in the international market.
– Promoting the development of renewable energy: A sustainable solution that helps to reduce dependence on fossil energy sources and natural resources, creating a sustainable development economy.
The trend in the manufacturing industry in Vietnam
The pros and cons of manufacturing in Vietnam
Vietnam is one of the few countries that still attracts investors in the context of the economic downturn. So, what are the benefits of manufacturing in Vietnam for businesses? This will come from the pros and cons of manufacturing in Vietnam.
Pros
– Favorable geographical location: Vietnam’s geographical position is located between major markets such as China, Japan, Korea, and Southeast Asia, helping businesses to easily access these markets and compete well. than.
– Low labor cost, young workforce: Labor in Vietnam has a lower income than many other countries in the region. The average salary in Vietnam is about 261 USD per month, while that of Singapore is 3,300 USD per month, that of Thailand is 332 USD per month, and that of the Philippines is 269 USD per month.
– Investment policies and government support: The Vietnamese government has introduced many policies to support investment, reduce taxes, and create favorable conditions for businesses to invest and produce in Vietnam.
The pros and cons of manufacturing in Vietnam
Cons
– Legal procedures take a long time: Businesses need to meet Vietnam’s legal regulations on production, tax, customs, and investment. The full implementation of these regulations requires businesses to spend a lot of time, money, and effort.
– The capacity of workers is low compared to the region: although labor costs are low, the quality and capacity of Vietnamese workers have not yet met the production needs of enterprises. This can lead to product quality problems and production delays.
– The fierce competition in the Vietnamese market, especially with other countries in Southeast Asia. Enterprises must have a good competitive strategy to maintain their position in the market and increase their competitiveness.
– The infrastructure system is still limited: the lack of infrastructure for transportation, electricity, clean water, and the internet affects the production activities of enterprises.
Read more: Potential Market of Food Producing Factory for Lease in Vietnam 2023
Savills – Specializes in providing solutions for leasing, buying and selling industrial real estate projects in Vietnam
Savills is a corporation specializing in providing solutions for leasing, buying, and selling leading industrial real estate projects in Vietnam. With more than 9 years of experience, Savills Vietnam has participated in many big projects, including VSIP Industrial Park, Amata Industrial Park, Tan Thuan Industrial Park, Phu My Industrial Park, and Bac Dong Phu Industrial Park.
With a professional and well-trained team, Savills Vietnam is fully equipped to cater to the demands of businesses
Savills has a team of experienced real estate consultants who easily recognize the pros and cons of manufacturing in Vietnam to assist clients in every stage of the investment process. With a deep understanding of the real estate market, Savills Industrial is becoming one of the trusted and preferred partners of domestic and foreign investors.
SBN-FW19 Ready-built factory/warehouse for lease in Yen Phong, Bac Ninh
– Minimum lease term: 3 years
– Warehouse area: 3,400 – 6,700 m²
– Floor load: 1.5 tons/ m²
– Ceiling Height: 7 – 9 m
– Price: Contact Savills Vietnam
Ready-built factory/warehouse for lease in Yen Phong, Bac Ninh
Factory for Sale in Ben Cat, Binh Duong
– Total area: 23,623 m²
– Floor capacity: 5 tons/ m²
– Ceiling height: 12 m
– Price: Contact Savills Vietnam
Factory for Sale in Ben Cat, Binh Duong
Factory for lease in HCMC – Binh Tan
– Total area: 11915m²
– Minimum lease term: 03 years
– Load: 1t/m²
– Ceiling Height: 4 – 4.5m
– Price: Contact Savills Vietnam
Factory for lease in HCMC – Binh Tan
Factory for lease in Long An
– Total area: 19,000 m²
– Minimum lease term: 03 years
– Load: 2t/ m²
– Ceiling height: 5.5-8 m
– Price: $3/ m²
Factory for lease in Long An
Read more: Cold Chain Logistics in Vietnam: Opportunities and Challenges
Conclude
The manufacturing industry is still a potential market for domestic and foreign investors. The pros and cons of manufacturing in Vietnam are recognized directly by the government, which strives to create the best business environment for enterprises.
If you are in need of advice on the process of investing in the industrial real estate market, please contact Mr John Campbell via the hotline: 0986.718.337 or contact Savills Vietnam to be consulted by a team of experts on detailed projects for you.
In addition, you can refer to our industrial real estate projects here.
