{"id":17801,"date":"2024-10-26T21:56:49","date_gmt":"2024-10-26T14:56:49","guid":{"rendered":"https:\/\/b-company.jp\/?p=17801"},"modified":"2024-10-26T21:56:49","modified_gmt":"2024-10-26T14:56:49","slug":"overview-of-companies-operating-in-the-mechanical-processing-industry-in-vietnam","status":"publish","type":"post","link":"https:\/\/b-company.jp\/vi\/overview-of-companies-operating-in-the-mechanical-processing-industry-in-vietnam\/","title":{"rendered":"T\u1ed5ng quan v\u1ec1 c\u00e1c c\u00f4ng ty ho\u1ea1t \u0111\u1ed9ng trong ng\u00e0nh gia c\u00f4ng c\u01a1 kh\u00ed t\u1ea1i Vi\u1ec7t Nam"},"content":{"rendered":"
<\/i><\/div>

*In this column “<\/em>Vietnam Briefing<\/em><\/a>“, young researchers from B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.<\/em><\/p>\n

Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.<\/em> <\/p>\n<\/div>\n\t

\n\t\t
\n\t\t\t

The mechanical industry is one of the fundamental sectors in Vietnam, playing a crucial role in economic and industrial development. Vietnam’s mechanical sector encompasses various fields, including the manufacturing of machinery and equipment for other industries such as agriculture, construction, transportation, and energy.<\/p>\n

Overview of Mechanical Industry in Vietnam<\/strong><\/h3>\n

According to statistics from the General Statistics Office (GSO), in 2023, Vietnam has approximately 30,000 mechanical enterprises, accounting for nearly 30% of the total number of manufacturing and processing enterprises, with the total revenue of the whole industry reaching over 1.7 quadrillion<\/strong>VND and creating jobs for more than 1.2 million labor. The domestic mechanical industry has gradually improved the localization rate, thereby driving the development of other industries and economy[1]<\/a>.<\/p>\n

\"Mechanical<\/em><\/p>\n

Source: Ministry of Industry and Trade (MOIT)<\/em><\/p>\n

Mechanical processing <\/strong>is a subset of the mechanical industry<\/strong> that involves the fabrication and production of components, parts, or products made from metals and other materials through machining methods such as cutting, shaping, casting, forging, stamping, welding, and other mechanical treatment methods. The primary objective of the mechanical machining industry is to produce mechanical products with precise shapes, dimensions, and accuracy that meet technical specifications across various sectors, including machinery manufacturing, automotive, electronics, aerospace, and construction.<\/p>\n

\"Intech<\/em><\/p>\n

Source: Website of Intech Vietnam Mechanical., jsc<\/em><\/p>\n

Situation of the companies operating in the Mechanical processing industry <\/strong><\/h3>\n

According to statistics from B&Company’s enterprise database based on the Vietnam Standard Industrial Classification (VSIC) [2]<\/a> in 2021, the total number and total revenue of companies operating in the field of mechanical processing[3]<\/strong><\/a> increased gradually from 2017-2021. The number of companies reached 11,998 companies (accounting for 40% of total companies in the mechanical industry), and total revenue reached\u00a0 197,947 billion VND in 2021, with a compound annual growth rate (CAGR) of 15% during the 2017-2021 period.<\/p>\n

Number of company and revenue in the field of mechanical processing, period of 2017-2021<\/strong><\/p>\n

(Unit: Billion VND)
\n\"Number
\n<\/em><\/p>\n

Source: B&Company\u2019s enterprise database<\/em><\/p>\n

Specifically, the revenue of companies operating in mechanical processing increased sharply in the period of 2020-2021, with revenue in 2021 reaching 197,947 billion VND, 1.3 times higher than in 2020. The reason was that mechanical enterprises were not affected much by the COVID-19 pandemic, along with participation in many free trade agreements, which has promoted the production of Vietnam’s mechanical industry to grow strongly compared to 2020.<\/p>\n

Most of the companies operating in the field of mechanical processing are concentrated in the Red River Delta region, accounting for 50% (5,979 companies) because of the following reasons:<\/p>\n