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Industrial Machinery Market in Vietnam

A combine harvester from Vietnam

For years, China and India have dominated the market for most industrial machinery in the Asia Pacific region. However, Vietnam has also emerged as an industrial machinery market in recent years. In fact, in some instances, acquiring industrial machinery from Vietnam may be more favorable than from China. This article will explore the key factors to consider when sourcing in Vietnam. It will also highlight some of the construction equipment found in Vietnam.

Table of Contents
Industrial machinery in Vietnam: market share & demand
Key factors for sourcing in Vietnam
Vietnam construction equipment
Final thoughts

Industrial machinery in Vietnam: market share & demand

In 1986, the government of Vietnam decided to reform and open its economy and put modernization among its key goals. Over the years, the country has seen significant growth in achieving these milestones. In 2021, for example, the electronics manufacturing industry accounted for 11% of exports. 

By 2020, there were over 2,200 companies that specialized in producing machinery and equipment, earning a total of $4.6 billion. The companies in Vietnam have grown at a CAGR of 14.3% between 2010 and 2019. The industry is the second largest sector of Vietnam’s economy, making up 33.7% of the GDP and employing 11.3 million people. The largest sector is services, which accounts for 41.63% of the GDP. 

The expansion of seafood production, textile, and electronics industries have caused the rapid growth of the industrial machinery market in the country. In addition, the hydrocarbons, steel, electricity, and coal industries have boomed, with oil production in Vietnam being the third largest in Southeast Asia.

Key factors for sourcing in Vietnam

Here are some of the critical factors to consider before sourcing in Vietnam.

Availability of capable manufacturers for your products

The advantage of Vietnam over other countries is its diversity of skills from which manufacturers can order their products. China is industrially advanced. There are, however, alternatives to China, such as Vietnam, Bangladesh, and Cambodia. Of the three, Vietnam offers the kind of diversity that businesses would require. The products that Vietnam exports include footwear, headwear, food and beverage, metals, textiles, garments, and machinery.

Vietnam’s logistics and infrastructure

Vietnam has undertaken a $5 billion construction of the North-South expressway. This is expected to boost the country’s infrastructure, globally ranked 39th, second only to China, and ranked 26th in the region. India, Cambodia, Indonesia, and Bangladesh ranked 44th, 98th, 46th, and 100th, respectively. Good infrastructure will make it possible to travel to manufacturers easily and transport goods faster and more efficiently.

Ease of doing business in Vietnam

It is easier to start a business than even in China. According to world metrics on the same, China ranked 46th while Vietnam ranked 69th. In addition, Vietnam is among the 34 countries that improved the most between 2018 and 2019 in terms of taxes, contract enforcement, and lowering the cost of starting a business. All these make it easier for businesses to operate in the country.

Foreign-owned Vietnam manufacturers

Investors see Vietnam as an industrial hub because it makes the transition from China to Vietnam easy. For example, in the last decade, Samsung invested $17.3 billion to build eight new factories and an R&D center. Other businesses, too, can easily invest in Vietnam due to its fast growth pace. 

Vietnam construction equipment

Excavator

An excavator is construction machinery with a boom, dipper, cab, and bucket rotating on a platform known as a house.

Excavator in a working site

Backhoe loader

A backhoe loader is tractor-like heavy machinery fitted with a loader-style bucket on the front and a backhoe at the back. It is also known as a digger, loader excavator, or loader backhoe.

Backhoe excavator in front of a factory

Asphalt paver

An asphalt paver is a type of machinery that lays asphalt concrete or portland concrete on roads, bridges, and parking lots.

Asphalt paver in an exhibition

Motor grader

A motor grader is a machine with a long blade that creates a flat surface during grading. It is also known as a road grader or a blade.

Motor grader also known as road grader

Bulldozer

A bulldozer is a motorized machine with a blade fitted at the front for pushing material, soil, sand, snow, rubble, or rock on a construction site.

Bulldozer during operation in a working site

Crane

A crane is a machine equipped with a hoist rope or chains and sheaves to lift and lower materials and move them horizontally.

Crane on a gray background

Metal processing machinery

Below are some examples of metal processing machinery.

Metal slitting machine

Metal slitting machines are used to cut steel metal into specified dimensions according to their end-use.

Steel coil slitting machine on a white background

Metal rolling machine

Metal rolling machines are used to create rounded sections from flat steel surfaces.

Metal processing machine in a factory

Metal extrusion machine

Metal extrusion machines are used to form different products using die.

Metal extrusion machine in a factory

Food processing machinery

Listed below are machines used in food processing that can be sourced from Vietnam.

Dryer

Food drying machines are used to dry food and help prevent it from going bad.

Food dryer on a white background

Grading machine

The grading machine is used to sort different types of fruits based on size. With this machine, businesses can quickly sort through large quantities of fruits.

Fruit processing machine

The fruit pro

Grading machine on a white background

cessing machine is used to extract juice from fruits in large quantities. It is also able to store the fruit extract for long periods.

Fruit processing machine on a white background

Plastic processing machine

Listed below are machines that are used in plastic production.

Plastic extruders

Plastic extruder machines allow you to melt down plastic pellets and form them into different helpful plastic products. 

Plastic extrusion machine in a factory

Plastic granulation machine

Plastic granulation machines are used to break down plastic for recycling.

Plastic granulation machine on a white background

Plastic production machine

Plastic production machines help create plastic products. Businesses can use this machine to develop various plastics.

Plastic production machine on a white background

Final thoughts

Vietnam can be an excellent alternative source for industrial machinery if businesses are looking for cheap machinery of good quality. Besides, setting up industries to produce machinery is affordable due to cheap labor. Vietnam forms the perfect place for building businesses and businesses that want to spread their wings further.

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