Ho Chi Minh City's Supporting Mechanical Industry Booms (2025–2030)

As Vietnam solidifies its position as an attractive destination for FDI, the supporting mechanical engineering industry in Ho Chi Minh City (HCMC) is undergoing a powerful transformation. This pivotal sector is crucial to the industrial supply chain and plays a vital role in enhancing national manufacturing capabilities. The 2025–2030 period is forecasted to be a boom time for investment in this industry in Vietnam's southern region.

1. The Role of the Mechanical Supporting Industry in Vietnam

The mechanical supporting industry is the backbone of the manufacturing sector, supplying components, machine parts, molds, and equipment for industries such as automotive, electronics, aerospace, and industrial machinery.

In Vietnam, the localization rate for many industries remains low. Therefore, developing the mechanical supporting industry not only helps reduce import dependency but also increases the value-added in production. HCMC is currently the country's largest industrial hub, accounting for a significant share of the manufacturing GDP and hosting numerous leading mechanical enterprises.

2. Preferential Investment Policies in Ho Chi Minh City 

To foster the growth of supporting industries, HCMC has implemented numerous preferential policies related to tax, land, and infrastructure support.

Key highlights include:

• Corporate Income Tax (CIT) exemptions and reductions for projects manufacturing prioritized supporting industry products.

• Priority allocation of land funds in industrial parks and export processing zones for mechanical supporting enterprises.

• Access to preferential loans from the Supporting Industry Development Fund.

• Connecting domestic and foreign enterprises, especially from Japan, South Korea, and Germany—nations with advanced mechanical engineering sectors.

These policies are creating a favorable environment for mechanical supporting businesses to expand their investments in HCMC during the 2025–2030 period.

3. The Wave of Production Shifts to Vietnam

Geopolitical dynamics and the "China+1" diversification trend are driving a wave of manufacturing relocations to Vietnam. Ho Chi Minh City and its neighboring provinces like Binh Duong, Dong Nai, and Long An are considered the "core hub" of the new supply chain in Southeast Asia.

International corporations in precision mechanics, electronic components, automotive, and industrial equipment are actively seeking local partners, expanding production, and investing in the domestic supply chain. This presents a massive opportunity for local mechanical supporting enterprises to enhance their capabilities, facilitate technology transfer, and integrate deeper into the global value chain.

4. Soaring Demand for International-Standard Factories

Parallel to the investment wave, the demand for international-standard rental factories in HCMC has surged. Both FDI and domestic enterprises require modern infrastructure, clean production environments, and strategic locations with convenient logistics connectivity.

In particular, the ready-built factory (RBF) model has become a popular choice, helping businesses quickly commence operations. Well-planned industrial parks offering technical support services and compliant environmental standards will have a distinct competitive advantage in attracting investment in this sector.

5. Development Trend Forecast for the Next 5 Years (2025-2030)

From 2025 to 2030, the mechanical supporting industry in HCMC is projected to:

• Achieve an average annual growth of 8–10%, especially in molds and precision components.

• Expand international cooperation through joint ventures and technology transfer projects.

• Strongly adopt automation, AI, and smart manufacturing to boost productivity.

• Promote sustainable development, focusing on energy efficiency and eco-friendly materials.

These trends will help shape HCMC into a leading regional hub for mechanical supporting industries, attracting both domestic and foreign investment capital.

6. Conclusion

With a strong industrial foundation, attractive support policies, and the global trend of production shifts, Ho Chi Minh City is emerging as a strategic destination for investment in the mechanical supporting industry. The 2025–2030 period promises to unlock significant opportunities for domestic enterprises to capture the market, enhance their capabilities, and achieve sustainable growth.