Industrial Parks Become Engines of Economic Transformation

Vietnam has leaned on its industrial parks to drive a manufacturing surge that began after the 1980s reforms.

Growth of the manufacturing zones

More than 430 facilities have opened in the past three decades, turning the country into a major export platform. The zones now account for over half of total export turnover, according to government data.

Electronics output rose from $45 billion in 2020 to $108 billion in 2025, while machinery and garments also posted strong gains. This expansion helped attract sustained foreign direct investment.

Multinational firms are shifting production away from China, and annual registered FDI has topped $20 billion since 2022. The influx reinforces the nation’s reputation as a manufacturing hub.

Yet the model shows strain. Gaps in power supply, transport links and ESG compliance limit efficiency. A shortage of skilled workers and a focus on low‑value assembly threaten future momentum.

Roland Berger identifies three structural limitations in the current model.

Structural hurdles limit next‑stage development

The first hurdle is infrastructure that lags global standards. Energy and logistics networks need upgrades, and only a handful of zones have earned eco‑industrial certification.

The second hurdle is talent. Just 24 percent of the manufacturing workforce holds formal training, and high‑tech sectors such as semiconductors face acute shortages of engineering talent.

The third hurdle is the country’s place in the value chain. Most output remains assembly work, with low localisation rates in electronics and rising competition from regional peers.

Regional leaders show a possible path. China, Singapore and South Korea moved from basic parks to integrated ecosystems by pairing sector specialization, digital infrastructure, research ties and talent pipelines.

Domestic policy is shifting, too. The emergence of eco‑industrial and high‑tech sites, including Saigon Hi-Tech Park, signals a push toward more sophisticated, sustainable and digitally enabled environments. New legislation, such as the Law on the Digital Technology Industry, adds incentives for strategic sectors.

The plan is kind of vague, but it moves forward.

For workers, the shift means a need to acquire new skills, while investors will look for projects that combine production with research capacity. If the ecosystem can deliver reliable power and trained staff, the zones could attract higher‑margin contracts.

Policy moves aim to reshape the ecosystem

Future facilities are expected to blend advanced manufacturing, logistics, digital infrastructure and research under a single roof. Sustainability solutions and urban services are also being woven into the design.

Ho Chi Minh City is preparing a request for developers to build 38 new zones covering more than 23,000 hectares through 2030, with a vision extending to 2050.