The Complete Guide to Setting Up Vietnam Manufacturing Companies

Posted date:
28 Aug 2025
Last updated:
31 Aug 2025

Global investors are looking at Vietnam manufacturing for its low costs, trade access, and skilled workforce. But launching Vietnam manufacturing companies can be challenging without a clear direction. This MOR Software’s guide highlights the key steps and requirements, helping you cut risks and succeed in one of Asia’s most attractive industrial markets.

Vietnam Manufacturing Growth Outlook in 2025

Vietnam steps into 2025 with optimistic yet varied economic forecasts. The World Bank expects growth at 6.8%, while the OECD predicts 6.2%. UOB is more bullish, adjusting its projection to 6.9% after stronger-than-expected Q2 performance. At the same time, Standard Chartered and the ADB forecast more conservative figures of 6.1% and 6.3%. Despite these differences, the Vietnamese government is setting higher goals, aiming for 8% growth or beyond.

The first six months of 2025 already showed remarkable progress. GDP expanded by 7.52%, the fastest first-half pace in 15 years. Industry and construction rose 8.33%, services grew 8.14%, and agriculture advanced 3.84%. This balance across sectors supports stability, even as global trade frictions and new tariffs continue to weigh on exports.

Vietnam Manufacturing Growth Outlook in 2025

Vietnam manufacturing stands out as the key engine of growth and investment attraction. In 2024, foreign investors poured in 20.6 billion USD into the economy, with most targeting factories and industrial zones. 

By July 2025, inflows had already hit 24.1 billion USD, with around 61% directed to manufacturing. Competitive labor costs, stronger supply chain networks, and modern infrastructure reinforce Vietnam’s reputation as a reliable production hub.

Looking forward, the country is moving into higher-value fields, from semiconductors to electronics, to capture greater returns from global trade. Yet risks remain. New 20% tariffs and shifting rules could limit exports. 

To stay competitive, Vietnam manufacturing industry players will need to diversify export markets, invest in skilled talent, and upgrade facilities to maintain investor trust and sustain growth momentum.

>>> READ MORE: Top 10 Market Entry Strategy For Businesses To Know In 2025

Key Benefits Of Setting Up Vietnam Manufacturing Companies

Set up company in Vietnam provides global producers with real advantages that continue to strengthen the country’s appeal. Labor remains affordable, averaging about US $3 per hour, compared to US $6.50 in China, which delivers major savings for labor-intensive industries.

Today, manufacturing contributes around 24–25% of national GDP, confirming its central role in the economy. Strong inflows of foreign direct investment highlight the confidence of international partners, supported by a strategic location in Southeast Asia and broad access to trade agreements like CPTPP and EVFTA. These policies reduce tariffs and open doors to lucrative markets worldwide.

Key Benefits Of Setting Up Vietnam Manufacturing Companies

At the same time, Vietnam’s youthful workforce, expanding industrial parks, and competitive business incentives create a setting that supports growth and scalability. This explains why Vietnam manufacturing companies have become a magnet for investors seeking efficiency and resilience in production.

Key benefits include:

  • Labor cost advantage: Factory wages average about US $3 per hour, about half of China’s US $6.50 rate.
  • Economic strength: Manufacturing generates around 24–25% of GDP, showing stability and scale.
  • Stronger trade access: Free trade agreements like CPTPP and EVFTA expand export potential and cut trade barriers.
  • Geographic advantage: Vietnam’s position in Southeast Asia ensures convenient access to global shipping lanes and logistics centers.
  • Young, skilled workforce: A growing, educated labor pool is increasingly active in electronics, textiles, and engineering.
  • Industrial infrastructure and incentives: Ongoing development of industrial zones, tax breaks, and simplified regulations makes investment more attractive.

Top Vietnam Manufacturing Industries To Invest In

Vietnam is home to diverse sectors that continue to drive its industrial growth. Among them, several stand out as the most promising areas for investors in Vietnam manufacturing.

Top Vietnam Manufacturing Industries To Invest In

Electronics

Vietnam’s electronics sector has surged in recent years, making it one of the strongest pillars of Vietnam manufacturing. In 2024, export turnover hit US $126.5 billion, equal to one-third of the nation’s total export value, according to the General Statistics Office (GSO). 

Out of this figure, computers, electronics, and components reached US $72.56 billion, a 27% increase compared with the previous year. Phones and related parts generated another US $53.9 billion in exports. 

Key destinations included China, the United States, and South Korea. Shipments of electronic goods and phones to Europe and North America alone topped US $56.9 billion, making up nearly 45% of the industry’s total.

Global producers have been shifting more operations into Vietnam to strengthen supply chains. Xiaomi recently confirmed it had begun making smartphones in the country to expand its regional presence. 

Samsung, which has long been a cornerstone of Vietnam manufacturing industry, contributed US $57.5 billion in handset exports back in 2021. That same year, the electronics sector exported goods worth US $116 billion in total, including US $50.8 billion in computers and components, representing growth of over 13% from the year before.

Vietnam is now home to some of the world’s largest technology investors. Samsung, Foxconn, Canon, LG, and Intel all maintain major production sites here, helping establish Vietnam as the world’s 12th-largest exporter of electronics. Much of this growth comes from foreign direct investment (FDI), which continues to fuel capacity expansion and strengthen the position of Vietnam manufacturers in global value chains.

Garments

The garment and textile sector is one of the strongest drivers of Vietnam manufacturing. Data from the Vietnam Textile & Apparel Association (VITAS) showed export earnings of US $40.4 billion in 2021, with forecasts reaching US $45 billion by the close of 2022.

Over the past five years, the industry has maintained impressive momentum, recording annual growth rates between 20% and 26%. This sustained expansion has positioned the country firmly on the global stage. Vietnam now ranks third worldwide in terms of textile and apparel export turnover, supplying around 5.2% of global demand.

International brands continue to increase sourcing from Vietnam. Nike’s 2021 financial report revealed that 51% of its footwear was produced in the country, making Vietnam its top manufacturing hub. 

At the same time, production in China fell to 21%, down from 35% in 2006, according to CNA. This shift underscores how doing business in Vietnam in textiles and garments have become vital to global supply chains.

Food Processing

The food processing sector has become a dynamic part of Vietnam manufacturing, marked by strong merger and acquisition activity. Large domestic names like Pan Group, Thanh Cong, Kido, and Masan have expanded aggressively, while leading Thai and Korean FMCG players have also poured capital into the market.

Despite global shifts, analysts point to continued opportunities in Vietnam’s food processing sector, especially in beverages and dairy. These areas are drawing consistent attention from both regional and international investors.

Trade numbers, however, show some impact from the pandemic. Import turnover for prepared and preserved seafood stood at US $14.1 million in Q1 2020, down 5% from the year before. Sales of processed beef totaled US $6.38 million, a decline of 16% year-on-year. Both figures reflect disrupted trade and weaker domestic demand during COVID-19.

Inventories also rose in early 2020, with 48,000 tons of processed agricultural food in stock. Coffee, pepper, and cashews made up nearly 43,000 tons, followed by seafood products. Even so, the sector recorded a 96% jump in the first half of 2020, placing it among the six industries with the highest inventory index.

Companies investing in advanced processing technology are now central to modernizing agriculture and raising value-added exports. 

By 2030, the food processing business in Vietnam is expected to rank among the top 10 globally, positioning the country as both a logistics hub and a reliable supplier for Vietnam industries linked to agriculture.

Automobiles

The automobile sector is becoming one of the fastest-growing areas of Vietnam manufacturing, drawing strong interest from international investors. 

Annual growth has averaged 20–30%, surpassing the Ministry of Industry and Trade’s own forecasts. This surge is supported by rising car imports and the rise of local producer VinFast, whose rapid expansion has put Vietnam on the global automotive map.

VinFast first made headlines in 2018 by unveiling the very first “made-in-Vietnam” car at the Paris Motor Show. Today, its vision centers on sustainability, with a focus on producing affordable electric vehicles (EVs) for domestic and global markets. 

To support this effort, the People’s Committee of Ha Tinh Province, together with Vingroup, began building the VinES Battery Manufacturing Factory, valued at around US $173 million.

Imports also reflect the industry’s momentum. In the first nine months of 2021, Vietnam brought in more than 100,000 cars, marking a 267% jump compared with the previous year. Most of these were passenger vehicles with fewer than nine seats, pointing to greater consumer purchasing power and higher demand for private cars.

Government policy is also creating favorable conditions for growth. In late 2021, the Ministry of Finance proposed lowering or eliminating taxes on domestically produced car parts, which would help cut production costs and attract more investment into the automotive supply chain. Incentives were also extended to automakers and related industries.

Trade agreements further boost the outlook. Vietnam’s automobile sector now has preferential access to major European markets like Germany, France, and the United Kingdom. Under recent deals, import duties on EU vehicles and components will be phased out within the next 7 to 10 years, offering fresh opportunities for Vietnam manufacturers to expand their footprint.

The Complete Guide For Vietnam Manufacturing Companies Setup

Setting up Vietnam manufacturing companies requires more than capital. It demands a clear understanding of legal structures, registration steps, and compliance rules. The guide below breaks down each stage for investors.

Choosing The Right Company Structure

Foreign investors looking to enter Vietnam manufacturing can choose from several business structures. The most popular options are Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs), but other forms are also available depending on project scale and investment strategy.

Choosing The Right Company Structure
  • 100% Foreign-Owned LLCs (Limited Liability Companies): The preferred structure for small and mid-sized enterprises that want full ownership and flexibility. These entities can typically be registered in about 45 days and give investors complete control over operations.
  • Joint Ventures (JVs): Ideal for companies that want to partner with local firms to access land, supply chains, or market knowledge. JVs balance risk-sharing with the benefits of local expertise.
  • Joint Stock Companies (JSCs): Suitable for larger projects, JSCs can be founded by individuals or corporations and have no cap on the number of shareholders, making them the best option for scaling up.
  • BOI-Registered Entities: Companies registered under special economic zones or incentive programs can enjoy tax breaks and other regulatory benefits, a good choice for businesses seeking cost advantages.
  • Representative Offices: These offices allow foreign firms to perform non-commercial activities such as marketing, recruitment, or liaison work. They cannot directly engage in sales or revenue-generating activities.
  • Branch Offices: Operating as an extension of the parent company, a branch office can carry out business activities in Vietnam without creating a separate legal entity, though it must appoint a legal representative locally.

Selecting the right structure depends on ownership goals, level of control, and market entry strategy. Each model offers different strengths, whether the focus is full independence, collaboration, or regulatory incentives. For any company in Vietnam, making the right choice at the start ensures smoother operations and long-term growth.

Steps For Registering A Vietnam Manufacturing Company (2025 Update)

Foreign investors must complete a series of steps to legally establish operations in Vietnam manufacturing. Following each stage ensures full compliance with national regulations and smoother approval from authorities.

  • Select a factory site: Choose a location either inside or outside industrial parks, high-tech zones, export processing zones, or economic zones, depending on business needs.
  • Prepare business and employee documents: Submit required paperwork outlining company details and workforce information.
  • Secure a registered address and legal representative: Every entity must provide a physical business address and appoint a legal agent in Vietnam.
  • Apply for an Investment Registration Certificate (IRC): The Department of Planning and Investment issues this document to confirm approval for foreign investment.
Registering A Vietnam Manufacturing Company
  • Obtain an Enterprise Registration Certificate (ERC): This certificate confirms the company’s official establishment and registration.
  • Create and register the company seal: The seal is required to validate and authorize all issued corporate documents.
  • Open a capital bank account: Establish a bank account to deposit the committed investment capital.
  • Register for taxes and electronic signature: Companies must complete tax registration and obtain an e-signature for compliance with Vietnam’s e-invoicing rules.
  • Apply for additional permits if needed: Extra licenses may be required depending on product type, chosen business line, or environmental impact. These approvals generally take 10 to 30 days.

Each step is crucial for successfully launching a new entity. Investors planning to set up Vietnam manufacturing companies should carefully manage timelines and documentation to avoid unnecessary delays.

The government has introduced new regulations in 2025 that reshape the legal framework for Vietnam manufacturing, focusing on transparency, compliance, and alignment with international practices. 

The changes affect investment procedures, environmental standards, labor rules, and taxation, creating a more efficient environment for both local firms and foreign investors.

Vietnam Manufacturing Legal Updates In 2025
  • Environmental Protection Law: Under Decree No. 153/2024/ND-CP, effective January 5, 2025, industrial facilities must now pay environmental protection fees on air emissions. This policy reinforces Vietnam’s pollution control measures and brings the country closer to global environmental benchmarks.
  • Investment Law: Law No. 57/2024/QH15, effective January 15, 2025, simplifies investment approval. It reduces project implementation timelines by as much as 260 days and replaces “pre-approval” with a “post-check” system. Procedures for construction, environmental assessments, and fire safety have all been streamlined.
  • Global Minimum Tax: This rule applies to foreign-invested manufacturers with consolidated revenues above EUR 750 million in at least two of the past four years. Affected companies must pay additional corporate income tax to meet global minimum tax requirements, aligning Vietnam’s tax policy with international standards.

These reforms strengthen competitiveness, reduce red tape, and make the country more attractive to investors. For any company in Vietnam entering the industrial space, staying updated on these policies is vital to ensure compliance and to capture growth opportunities in the expanding sector.

>>> READ MORE: How to Get Vietnam Work Visa: Complete Guide for Foreigners 2025

7 Things To Consider Before Setting Up A Vietnam Manufacturing Company

Before starting operations, investors should carefully review several practical factors that can affect the success of Vietnam manufacturing companies. From capital planning to compliance, each step plays a crucial role.

Things To Consider Before Setting Up A Vietnam Manufacturing Company

Estimate Capital And Costs

Securing the right amount of funding is one of the first steps when planning a Vietnam manufacturing project. Investors should prepare a clear budget that accounts for factory lease, utilities, transport, equipment, salaries, and other expenses that may arise during operations. 

Ensuring the available capital is sufficient not only covers initial setup but also helps sustain the factory during its early production stages.

Evaluate Plant Location For Production

Choosing the right site is critical because location directly affects efficiency and cost. Investors must assess whether the planned site supports a smooth production process and provides easy access to logistics networks. 

A well-positioned factory ensures that raw materials arrive on time and that finished goods are delivered quickly to customers, giving Vietnam manufacturers an edge in competitiveness.

Define Workforce Requirements

Each industry demands workers with different skill sets, from technical specialists to production staff. Before recruiting, companies need to identify the level of qualification and training required for their teams. 

This preparation allows investors to align workforce planning with financial resources, ensuring the right talent is in place to meet production goals. Having the correct mix of skilled labor is a core factor in sustaining growth in Vietnam manufacturing companies.

Plan Machinery And Equipment Needs

Every Vietnam manufacturing facility depends on machinery to keep production running smoothly. Investors should carefully estimate how many machines are required and match those needs with the right type of factory. Smaller sites may cost less to rent but often have limited space for large equipment. 

Larger facilities can support more advanced machines, though rental and operating costs are higher. Choosing a setup that aligns with production goals ensures efficiency across the entire line.

Choose Reliable Suppliers

Suppliers play a crucial role in maintaining consistency. Before committing, businesses should thoroughly evaluate supplier profiles, product quality, and track records. A dependable partner secures a steady flow of raw materials and reduces risks of disruption. 

In contrast, unreliable suppliers can delay operations, waste resources, and cause financial setbacks. For long-term growth, Vietnam industries demand suppliers who can deliver on both quality and reliability.

Study Customer Demands

Thorough market research is essential before launching production. Identifying what customers want, how much they are willing to buy, and which standards they expect helps investors decide what products to make and at what volume. 

Without this knowledge, a Vietnam manufacturing company risks misalignment between supply and actual market needs.

Compliance with national laws is non-negotiable. Investors must confirm that their factory holds the required licenses and permits for its chosen business lines. 

This includes environmental regulations, safety standards, and industry-specific approvals. By ensuring processes follow current Vietnamese laws, businesses protect themselves from penalties and strengthen trust with partners and clients.

MOR Software Help Foreign Investors Build Vietnam Manufacturing Success

For foreign investors, entering Vietnam’s manufacturing sector means more than securing land or labor. The real challenge lies in building reliable systems that support growth and compliance from day one.

MOR Software provides tailored enterprise CRM solutions designed for manufacturing operations in Vietnam. We help investors integrate ERP, HRIS, and supply chain platforms, ensuring smooth coordination across production, payroll, and workforce management.

Our teams develop custom applications that give investors real-time visibility into operations, improve decision-making, and reduce risks tied to regulatory changes or supply chain disruptions. Every solution is built to align with Vietnam’s legal standards and international security practices.

Partnering with MOR Software gives foreign investors a trusted technology ally to establish and scale Vietnam manufacturing companies with confidence.

Conclusion

The future of Vietnam manufacturing is full of opportunity. Competitive labor costs, favorable trade policies, and a skilled workforce continue to attract investors from across the globe. Still, launching Vietnam manufacturing companies is not without its challenges. Investors must manage legal compliance, select the right suppliers, secure skilled labor, and build strong systems for production and payroll. Contact us today to start building lasting success in Vietnam’s growing industrial market.

MOR SOFTWARE

Frequently Asked Questions (FAQs)

What is the main manufacturing in Vietnam?

Vietnam’s manufacturing sector covers a wide range of industries, including textiles and garments, electronics, footwear, machinery, and food processing. In recent years, the country has emerged as a global hub for electronics and textile production, supported by strong foreign investment.

Is Vietnam a good manufacturing country?

Yes. Vietnam is highly regarded for its textile and garment exports, backed by skilled workers and strong production capacity. The country’s established supply chains and favorable trade agreements give businesses easier access to international markets.

Is it cheaper to manufacture in Vietnam?

Manufacturing in Vietnam is more cost-effective compared to China. Average labor costs are around $2.99 per hour in Vietnam, compared to $6.50 in China. Lower expenses for energy and industrial land further reduce overall operating costs.

Is made in Vietnam high quality?

Products made in Vietnam are known for consistent quality, especially in textiles, footwear, and electronics. Many global brands choose Vietnam for production because factories maintain international standards while offering competitive costs.

What are the disadvantages of manufacturing in Vietnam?

Vietnam faces challenges like limited domestic supply of raw materials, which leads to reliance on imports. Global trade tensions and shipping disruptions can also affect supply chains and increase costs for manufacturers.

What is Vietnam best known for producing?

Vietnam is a key producer of cement and fertilizers, both central to its industrial sector. Steel is another significant output, alongside growing industries in textiles, electronics, and footwear.

Why is stuff so cheap in Vietnam?

Goods and services are affordable in Vietnam due to favorable exchange rates, lower labor costs, and abundant local production of essentials like food and textiles. This keeps daily living expenses low, although imported goods may cost more.

What products are cheap in Vietnam?

Travelers often find affordable items such as aluminum coffee filters (under $2), stainless steel filters ($2.50 to $5), ground coffee (about $2 to $6 for 250g), and premium coffee (around $6 to $10 for 500g).

What is the best industry in Vietnam?

Vietnam’s beer industry is one of the strongest in Asia. The country ranks among the world’s top beer consumers, reaching nearly 4.6 billion liters in 2023, making it the second-largest beer market in Asia after China.

Why is Vietnam growing so fast?

Vietnam’s rapid growth is driven by strong manufacturing, rising foreign investment, and an expanding middle class. Its growing role as a technology and industrial hub has drawn comparisons to advanced economies in Asia.

Rate this article

0

over 5.0 based on 0 reviews

Your rating on this news:

Name

*

Email

*

Write your comment

*

Send your comment

1