Vietnam elevates her manufacturing might

Vietnam’s development record over the past 30 years is remarkable. Since the reforms under Đổi Mới that is launched in 1986, the rapid growth in economic and political change had been outstanding. The country’s GDP in the last ten years have grown from 100 billion USD to over 223 billion USD. In the first half of 2018, Vietnam’s GDP is estimated to have increased by 7.1 %, particularly led by strong manufacturing growth of 13 percent, coming from a strong external demand.

The automobile sector is one of the main contributors to Vietnam’s strong manufacturing sector. According to the Vietnam Ministry of Industry and Trade, the volume of locally-assembled cars in July was estimated at 23,200 units, up 31.4 per cent compared with the same period last year(2017). Vehicle production is predicted to reach 531,585 units by 2025 and 1.77 million units by 2035.

The surge in domestic production in vehicles will generate a more comprehensive supply chain locally – which more independent autoparts would be manufactured in the local clusters. Vietnamese manufacturers thus demand new, refined machineries, lathes, CNCs, grinding machines, and automation systems to be equipped in their production lines in response to the arrival current. The machineries from Taiwan, with high price-to-value ratio naturally become a key purchasing origin for Vietnam manufacturers. Taiwan machine makers have developed some outstanding results from smart manufacturing, especially in the field of tailored production lines, automation integrated manufacturing cell, and user friendly systems that target the automobile industry, in particularly to accommodate new composite materials, faster machining and accuracy.

With this background, on top of the encouragement of Taiwan’s “New Southbound policy”, a heated flow of business and tourism could be observed between Taiwan and Vietnam.

Deriving from a joint anticipation to exploit the benefits for all parties in this emerging business opportunity, Taiwan Corporate Synergy Development Center cooperated with Ringier Trade Media and invited VASI, along with its members to visit Taiwan’s metalworking equipment sector. Some of the participant companies are Industrial Mechanics and Automation, Bach Tung Constructions Mechanical, JAT Autoparts & Industry Equipment Manufacturing JSC, INO TECH, and Le Hung Technology. In the 5-days trip, VASI will conduct factory tours to Chin Fong Machine (the most senior stamping press manufacturer in Taiwan), and Mobiletron Electronics (a high profile automotive electronics global innovator). They will also participate in Taiwan International Machine Tool Show and see a full showcase of the strength in Taiwanese machineries. Taiwan Machine Tool & Accessory Builder’s Association, organizer of TMTS would meet with VASI to discuss further opportunities between two associations.

Chin Fong Machine

Mobiletron Electronics

In 2016-2017, Vietnam is ranked as the fifth export destination of Taiwan’s machinery with an 8.8% annual growth, it is expected that the VASI tour to Taiwan will foster in-depth industrial knowledge for both sides, and that the knowledge would help Vietnamese manufacturers pinpoint the solutions they demand from Taiwan machineries. 

Apart from the ‘hard business’ in machineries and metalworking, the VASI group will also enjoy the natural and artistic side of the island. They will  be sightseeing around the suburban area, and of course the night market that is not to miss.

This event will hopefully bring the networks of both countries supply chain closer, and with the two associations being formally on board, the outlook of stronger business cooperation between Taiwan and Vietnam is positive.