Industrial parks designed as engines of transformation

Despite strong growth over the past three decades, the current model is constrained by infrastructure gaps, shortages of skilled labour, and limited integration into high-value global supply chains. As global supply chains shift and technology reshapes manufacturing, the country’s industrial parks (IPs) face new demands and new opportunities.

Over the past three decades, Vietnam’s IPs have been the backbone of the country’s manufacturing surge. Since the economic reforms of the 1980s, more than 430 IPs have sprung up, powering export growth and attracting sustained foreign direct investment.

Electronics, machinery, and garments have led the charge, with electronics exports alone more than doubling from $45 billion in 2020 to $108 billion in 2025. Today, over half of Vietnam’s export turnover is generated within these zones.

But the landscape is changing. Multinational corporations are diversifying production away from China, and Vietnam has emerged as a key beneficiary. Annual registered foreign direct investment (FDI) has exceeded $20 billion since 2022, reinforcing the country’s status as a manufacturing hub.

Yet, this success brings new challenges: infrastructure gaps, a shortage of skilled labour, and a concentration in low-value assembly threaten to limit future growth.

Roland Berger’s analysis shows that Vietnam’s current IPs model, focused on low-cost land and basic manufacturing, faces three structural limitations.

First, infrastructure is lagging global standards, especially in energy, logistics, and environmental, social, and governance compliance. Only a handful of parks has achieved eco-industrial certification, and power grid constraints pose risks for energy-intensive sectors.

Second, the talent gap is widening. Only 24 per cent of the manufacturing workforce is formally trained, and high-tech sectors like semiconductors face acute shortages of engineering talent. As investment shifts towards advanced manufacturing, the need for skilled labour and research and development (R&D) capabilities becomes critical.

Third, Vietnam’s position in the global value chain remains anchored in assembly and low-value activities. Localisation rates in electronics are still low, and competition from ASEAN peers is intensifying.

To move upstream, Vietnam must foster innovation, technology development, and deeper integration with global supply chains.

Regional leaders offer valuable lessons. China, Singapore, and South Korea have all transitioned from basic manufacturing parks to integrated, high-tech ecosystems through coordinated public-private action. These models emphasise sector specialisation, digital infrastructure, and strong links to R&D and talent.

Vietnam is already taking steps in this direction. The emergence of eco-industrial and high-tech parks, such as Saigon Hi-Tech Park, signals a shift towards more sophisticated, sustainable, and digitally enabled ecosystems. New legislation, including the Law on the Digital Technology Industry, is reinforcing this trend by prioritising strategic sectors and offering targeted incentives.

As Vietnam enters a new industrial era, the stakes are high. The choices made now will determine whether the country can move up the value chain and reinforce its position as a leading Asian industrial hub.

Future IPs will increasingly function as integrated platforms combining advanced manufacturing, logistics, digital infrastructure, R&D, sustainability solutions, and urban services within a unified environment.

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