Supportive Industries: The Key to Vietnam's Industrial Autonomy and Deepening Global Supply Chains

What Happened

On July 2, 2026, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), in collaboration with the Ho Chi Minh City Supporting Industry Association (HASI), held a forum bringing together businesses, policymakers, and experts to discuss ways to strengthen manufacturing capabilities, deepen supply chain integration, and expand cooperation with strategic investors, financial institutions, and foreign-invested enterprises. The forum clearly positioned supporting industries as a core pillar for Vietnam's industry to transition from processing and assembly to self-reliant production.

The Development Logic Behind This Event

The forum took place at a time when global supply chains are accelerating restructuring due to geopolitical tensions, major power strategic competition, green and digital transformation, and the relocation of high-tech investments. ITPC Deputy Director Cao Thi Phi Van noted that supporting industries are no longer auxiliary manufacturing sectors but the foundation for enhancing industrial autonomy, increasing localization rates, strengthening competitiveness, and helping enterprises deeply embed themselves in regional and global supply chains. Vietnam continues to benefit from supply chain diversification, with registered FDI reaching $24.81 billion in the first five months of 2026, a year-on-year increase of 34.9%, of which manufacturing and processing attracted $8.06 billion. However, during the same period, imports of electronics, computers, and components still reached $6.62 billion, exposing a gap in domestic supply. In response, the government launched the "Supporting Industry Development Plan for 2026-2035," aiming to raise the average localization rate of key industries to 40-45% by 2030 and elevate Vietnam into the top three in ASEAN industrial competitiveness; by 2035, most supporting industries are expected to possess advanced technological capabilities and participate more deeply in global value chains.

Significance for Local Development

The strengthening of supporting industries directly drives employment and industrialization. Ho Chi Minh City currently has 105 export processing zones and industrial parks, covering over 50,000 hectares, of which 58 are operational. Supporting industries have been identified as a pillar for enhancing industrial competitiveness and domestic production capacity. The Saigon Hi-Tech Park has attracted 26 supporting industry projects with investments exceeding $512 million, raising the localization rate from about 10% in 2010 to over 20%. However, computers, electronic products, and components are still largely imported, creating enormous opportunities for local manufacturers to substitute imports. The "China+1" strategy also provides a window for Vietnamese enterprises to become second- and third-tier suppliers for multinational corporations. Business representatives emphasized that compliance with international standards (such as ISO 9001, IATF 16949, etc.) is a prerequisite for entering global supply chains, which not only improves product quality but also drives the standardization of production systems.

Impact on Regional Development

By developing supporting industries, Vietnam has deepened its role in ASEAN and global supply chains. At the forum, HASI signed an agreement with the Benelux-Vietnam Business Association to help supporting industry enterprises expand into the European market. Regarding regional connectivity, as a manufacturing hub, Vietnam's rising localization rate will reduce dependence on imported intermediate goods and enhance the resilience of regional supply chains. At the same time, Vietnam's cooperation model with multinational corporations can serve as a reference for other developing countries, promoting cross-border industrial collaboration.

Potential Impact in the Next 5 to 15 YearsIf the plan is implemented smoothly, by 2035 Vietnam's supporting industries will achieve technological upgrades and secure a more stable position in the global value chain. This will transform its industrial landscape: shifting from low-end assembly to high-value-added component manufacturing, attracting more high-quality FDI, and forming new growth poles. Digital transformation, data, and artificial intelligence are regarded as emerging competitive advantages, helping manufacturers improve productivity and reduce costs. Vietnam's experience shows that supporting industries are an important reference path for African countries to achieve industrialization and supply chain autonomy.

Implications: Lessons for Africa