Ho Chi Minh City Mechanical Supporting Industry Trends 2025–2030

Trend for Mechanical Supporting Industry Investment (2025-2030)

The mechanical supporting industry plays a foundational role in high-tech manufacturing. As the country's leading economic and industrial center, Ho Chi Minh City (HCMC) is becoming an attractive destination for a new wave of supporting industry investment in the 2025–2030 period, driven by developed infrastructure, preferential policies, and growing production demand.

1. The Role of the Supporting Industry in Vietnam 

The mechanical supporting industry is the backbone of the production supply chain, providing components, molds, machine parts, and equipment for the automotive, electronics, consumer goods, and medical device sectors.

In Vietnam, this sector is considered a key area to enhance domestic production capacity and reduce reliance on imported components.

According to the Ministry of Industry and Trade, the localization rate for mechanical components is only about 35–40%. Therefore, the potential for development remains vast, especially in areas with complete industrial infrastructure like HCMC, Binh Duong, and Dong Nai.

2. Investment Incentive Policies in HCMC 

HCMC is actively attracting investment in high-tech industries and precision mechanics, with the supporting industry as a top priority. Key support policies include:

• Corporate Income Tax (CIT) exemptions and reductions for 4–9 years for projects manufacturing supporting industry products.

• Support for infrastructure, land, and investment procedures in key industrial parks (IPs) such as Hiep Phuoc IP, Dong Nam IP, and Le Minh Xuan 3 IP.

• Priority access to preferential loans through industrial development support funds.

• Programs connecting the supply and demand of mechanical products, helping domestic enterprises join the FDI supply chain.

Thanks to these policies, HCMC is attracting an increasing number of businesses from Japan, Korea, Germany, and Singapore to invest in the supporting industry.

3. The Wave of Production Shifting to Vietnam 

The geopolitical landscape and the trend of global supply chain diversification have made Vietnam a strategic destination for many international corporations.

According to JETRO and AmCham, over 60% of FDI enterprises in China plan to move part of their production to Vietnam, especially in precision mechanics, auto parts, and electrical/electronic equipment.

With advantages such as:

• Proximity to seaports and logistics hubs.

• Competitive labor costs.

• A modern industrial park system. → HCMC has become the leading center in the South for receiving this flow of supporting industry investment.

4. Rising Demand for International-Standard Factories 

Along with the investment wave, the demand for leasing mechanical factories that meet international standards is rising sharply. FDI and domestic enterprises require workshops with heavy-load-bearing floors, high ceilings, stable power systems, and complete fire protection and environmental standards.

Some industrial parks currently favored by investors include:

• Dong Nam IP (Cu Chi): Suitable for manufacturing mechanics and electronic components.

• Le Minh Xuan 3 IP (Binh Chanh): Ready infrastructure, close to the city center.

• Long Hau IP (Can Giuoc) and Tan Kim, Hai Son IPs (Long An): Convenient connectivity, competitive rental prices.

In parallel, the ready-built factory (RBF) model is becoming the top choice, helping businesses shorten production deployment time and reduce initial investment costs.

5. Five-Year Development Trend Forecast 

In the 2025–2030 period, the mechanical supporting industry in HCMC is forecasted to:

• Grow at an average of 8–10% per year.

• Expand production scale to satellite provinces like Long An, Binh Duong, and Dong Nai.

• Focus on high technology, automation, and green production.

• Increase demand for smart, energy-saving factories.

With the development orientation of "HCMC – the high-tech manufacturing center of the Southern region," investing in the supporting industry not only brings great economic potential but also contributes to elevating Vietnam's industrial position on the regional map.

6. Conclusion 

HCMC's mechanical supporting industry is entering a strong growth phase thanks to supportive policies, the production shift trend, and modern industrial infrastructure.

Businesses can seize this early opportunity by surveying and leasing international-standard factories in strategic industrial parks – which are offering many attractive investment incentives for the 2025–2030 period.