Encouraging Advancements to Boost Industrial Sectors

In the bustling city of Hanoi, an Investment Promotion Conference took place on August 5, focusing on the Supporting Industry sector. The aim was to attract investment in key sectors of Vietnam's economy, with the potential to bolster the nation's industrial growth.

RX Tradex, a renowned organiser of industry events, played a significant role in this conference. Each year, more than 200 global brands participate in their exhibitions, showcasing their products and innovations. The Vietnam Manufacturing Expo and Supporting Industry Show, for instance, serve as meeting grounds for discovering industrial innovations, exchanging ideas, and updating industry knowledge.

The automotive market in Vietnam is preparing to improve its value chain and tap into new opportunities as the global landscape shifts. RX Tradex's events offer business matching initiatives, such as facilitating over 100 business-to-business meetings between buyers and suppliers. These encounters provide a solid foundation for future growth, granting businesses access to a wealth of knowledge, high-quality partnerships, and the latest technologies.

Foreign investors are drawn to Vietnam's high-tech and value-added manufacturing sector by several key factors. Cost competitiveness and labor advantages, such as significantly lower operating costs compared to China, make Vietnam an attractive destination. The average manufacturing sector salary is around US$332 per month, with entry-level factory workers earning about US$250 monthly.

However, about 45% of foreign-invested manufacturers report difficulties recruiting skilled technicians. The government’s investment in vocational training and partnerships with universities are essential to support investor workforce needs. Successfully navigating investment registration licenses (IRC/ERC) and choosing optimal locations to leverage incentives are also crucial. Northern industrial hubs offer lower wages and favourable conditions, while southern regions have other advantages.

Strong government support, investment climate improvements, and participation in multiple free trade agreements (17 FTAs including CPTPP, EVFTA, RCEP) enhance Vietnam’s attractiveness for high-tech manufacturing and exporting. US tariff pressures on China have created openings for Vietnam to become a new production center, benefiting from its strategic location, infrastructure development, and flexible investment policies.

RX Tradex supports these investors by providing platforms and services that showcase Vietnamese enterprises, facilitate direct partnerships, and disseminate critical market and technological insights. Their business matching services, seminars, and knowledge sharing events help investors and manufacturers stay informed about market dynamics and innovations, supporting growth and competitiveness.

By fostering networking and partnerships, RX Tradex helps create strong ecosystems essential for sustainable business growth rather than isolated transactions. These events provide a face-to-face platform for building relationships and fostering collaborations that go beyond the exhibition floor. Despite persistent structural hurdles and market limitations, Vietnam's supporting industries are poised for growth and development with the help of forward-thinking organisations like RX Tradex.