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Ho Chi Minh City – A Strategic Hub for Vietnam’s Manufacturing and Technology Innovation

Ho Chi Minh City (HCMC) is emerging as a strategic center for the development of Vietnam’s mechanical and manufacturing industries, attracting strong attention from foreign investors thanks to the country’s shift from outsourcing to design, technology innovation, and sustainable production.


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This insight was shared by Mr. Miguel Ferrer, Chairman of the Belgium–Luxembourg Chamber of Commerce in Vietnam, at the Trade Connection and Product Showcase Week for the Mechanical, Electrical, and Digital Technology Sectors 2025, held on October 22 in HCMC.


According to Mr. Ferrer, this transformation, combined with a highly skilled workforce, is positioning Vietnam as a new “smart workshop” in the global supply chain — where companies are not only manufacturing but also designing, researching, and developing new technologies.


From “Manufacturing” to “Innovation” – Vietnam’s Path Toward High-Tech Industrialization

In the past, research and development (R&D) activities were mostly conducted abroad, while Vietnam focused on re-engineering and manufacturing. Today, a new wave of transformation is taking place as international firms are coming to HCMC not just to produce, but to innovate and develop next-generation technologies.


“This shift represents a significant milestone, transforming Vietnam from an outsourcing destination into a true center of technological development in Southeast Asia, particularly in mechanical manufacturing,” said Mr. Ferrer.


To further attract foreign direct investment (FDI) into the manufacturing sector, Vietnam is focusing on three strategic pillars:

  1. Developing advanced technology and local production capabilities.

  2. Enhancing technical and engineering workforce quality.

  3. Promoting green transformation and energy efficiency in industrial operations.


Among the contributors to this transition, Veep plays a pivotal role as a pioneer in Energy Efficiency as a Service (EEaaS). The company supports factories and industrial facilities across Vietnam in reducing energy consumption, cutting carbon emissions, and upgrading operations to meet ESG standards.


Through a zero-capex financial model, Veep enables manufacturers to adopt green technologies and optimize operations without upfront investment, creating sustainable competitive advantages and making Vietnam an even more attractive destination for high-tech and climate-aligned FDI projects.


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According to Mr. Ferrer, Vietnam’s human capital is becoming a strategic advantage. The expansion of technical education and vocational training has produced a growing pool of skilled engineers and technicians capable of meeting the demands of modern manufacturing.


The synergy between progressive investment policies, strategic geographic location, high-quality human resources, and the involvement of innovative companies like Veep is creating an integrated ecosystem of manufacturing, technology, and sustainable energy — strengthening Vietnam’s position on the global industrial and mechanical manufacturing map.


Source: DTTC

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