{"id":25759,"date":"2026-08-28T14:59:57","date_gmt":"2026-08-28T07:59:57","guid":{"rendered":"https:\/\/b-company.jp\/?p=25759"},"modified":"2026-08-31T15:19:15","modified_gmt":"2026-08-31T08:19:15","slug":"vietnam-factory-automation-demand-a-promising-market-opportunity-for-japanese-industrial-technology-companies","status":"publish","type":"post","link":"https:\/\/b-company.jp\/vi\/vietnam-factory-automation-demand-a-promising-market-opportunity-for-japanese-industrial-technology-companies\/","title":{"rendered":"Nhu c\u1ea7u t\u1ef1 \u0111\u1ed9ng h\u00f3a nh\u00e0 m\u00e1y t\u1ea1i Vi\u1ec7t Nam: M\u1ed9t c\u01a1 h\u1ed9i th\u1ecb tr\u01b0\u1eddng \u0111\u1ea7y h\u1ee9a h\u1eb9n cho c\u00e1c c\u00f4ng ty c\u00f4ng ngh\u1ec7 c\u00f4ng nghi\u1ec7p Nh\u1eadt B\u1ea3n"},"content":{"rendered":"

\"B&Company-Vietnam<\/a><\/p>\n

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<\/span>B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.<\/span><\/i>\u00a0<\/span>\u00a0<\/span><\/p>\n

In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.<\/span><\/i>\u00a0<\/span><\/p>\n

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. 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. <\/span><\/i><\/p>\n<\/div>\n\t

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Vietnam\u2019s manufacturing sector is entering a new phase of expansion, driven by foreign direct investment, supply chain relocation, and increasing demand for higher productivity. While automation adoption is accelerating, the market remains fragmented, with many factories operating isolated automation systems rather than fully integrated smart manufacturing platforms. This creates opportunities for Japanese industrial technology companies that can provide not only equipment, but also integration capability, lifecycle support, and measurable operational improvements.<\/p>\n

Automation in Vietnamese factories – Illustrative photo<\/strong><\/p>\n

\"Automation<\/p>\n

Source: VnEconomy<\/p>\n

Automation gap: high ambition, fragmented integration<\/strong><\/h3>\n

In 2025, Vietnam\u2019s manufacturing and processing sector recorded value-added growth of 10.5%. In the first six months of 2026, the sector\u2019s industrial production index increased 11.4% year-on-year, exceeding the 10.5% growth recorded in the first half of 2025.[1]<\/a> Industrial expansion has been accompanied by continued investment: JETRO\u2019s FY2025 survey showed that 56.9% of Japanese companies operating in Vietnam planned to expand their businesses within the next one to two years.[2]<\/a><\/p>\n

However, these figures do not mean that factories will immediately become smart factories. The market currently operates at three different speeds. Large-scale FDI manufacturers have generally introduced robots, manufacturing execution systems, and automated quality control, with future demand focusing on optimization, data analytics, predictive maintenance, and internal logistics. Tier-1 suppliers and capable domestic manufacturers have adopted CNC machines, programmable logic controllers, cameras, and robots for selected processes, but these systems are not always connected. Meanwhile, many small and medium-sized enterprises continue to prioritize automation of individual bottlenecks with clear return-on-investment potential.<\/p>\n

The key challenge is therefore not simply a shortage of automated equipment, but the existence of \u201cautomation islands\u201d. Production, quality, maintenance, energy, and inventory data are often managed on separate platforms, with some processes still relying on spreadsheets or manual records. Without stable and standardized data foundations, companies face difficulties implementing advanced applications such as AI-based defect prediction, digital twins, or factory-wide optimization.<\/p>\n

Financial barriers: ROI matters more than specifications<\/em><\/strong><\/h4>\n

For many SMEs, replacing entire production lines is unrealistic. High upfront investment costs, fluctuating orders, and limited profit margins make management teams cautious about projects with unclear payback periods.<\/p>\n

Data, Existing Factory Infrastructure<\/em><\/strong><\/h4>\n

Most automation opportunities in Vietnam involve upgrading existing factories rather than building completely new facilities. Existing production sites may contain equipment from different countries, generations, and communication standards. Therefore, solutions requiring a closed ecosystem may create high integration costs. Before implementing AI or advanced analytics, companies often need to add sensors, establish connectivity, standardize equipment data, and create data governance rules.<\/p>\n

Human Resources and Cybersecurity Challenges<\/em><\/strong><\/h4>\n

The Ministry of Industry and Trade noted that the adoption of AI, the Internet of Things (IoT), and big data in industrial production remains limited, with many small and medium-sized enterprises (SMEs) facing constraints in capital availability, skilled workforce, and production management capabilities. Digital infrastructure, computing capacity, cybersecurity readiness, and the availability of automation engineers also remain uneven across companies.[3]<\/a> As a result, factors such as maintenance response speed, spare parts availability, and operator training capabilities in Vietnam can influence purchasing decisions as significantly as the equipment brand itself.<\/p>\n

Industry Demand Matrix: Where Japanese Technology Fits?<\/strong><\/h3>\n

Automation demand varies significantly across industries. The electronics sector requires high precision and real-time data traceability; automotive suppliers prioritize flexible retrofitting capabilities; food and pharmaceutical manufacturers place greater emphasis on hygiene, validation, and regulatory compliance; while e-commerce logistics facilities require scalable solutions that can adapt to fluctuating order volumes. Japanese companies should therefore tailor their solutions and sales approaches to the specific needs of each industry, rather than offering a one-size-fits-all \u201csmart factory\u201d package.<\/p>\n\n\n\n\n\n\n\n\n
Field<\/strong><\/td>\nOutlook<\/strong><\/td>\nPriority Demand<\/strong><\/td>\nSuitable Model for Japanese Companies<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Electronics and OSAT<\/td>\nHigh in the short term<\/td>\nMachine vision, precision processing, cleanroom automation, traceability, and predictive maintenance<\/td>\nPrecision equipment + open interfaces + on-site application engineers<\/td>\n<\/tr>\n
Automotive and Supporting Industries<\/td>\nMedium\u2013high<\/td>\nCollaborative robots, machine loading\/unloading, inspection systems, tooling and mold monitoring, and equipment retrofitting<\/td>\nProcess-level pilot projects; modular expansion; avoid full-line replacement<\/td>\n<\/tr>\n
Food, Pharmaceutical and FMCG<\/td>\nMedium\u2013high<\/td>\nFilling, packaging, weighing and inspection, label\/batch control, traceability, and hygiene management<\/td>\nHygienic design, validation support, and lifecycle cost demonstration<\/td>\n<\/tr>\n
E-commerce and Logistics<\/td>\nHigh but project-based<\/td>\nAGV\/AMR, sorting systems, AS\/RS, picking support, and warehouse management software<\/td>\nArea-based implementation, scalable according to throughput, and WMS\/OMS integration<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: Compiled and analyzed based on sources MoIT (2026)<\/a>-1, Government News (2026)-1<\/a>, Government News (2026) – 2<\/a>, MoIT (2026) -2<\/a>, MoIT (2026)-3<\/a>, Vecom (2026)<\/a>, IFR (2025)<\/a><\/p>\n

Strategic market entry roadmap: moving beyond standalone hardware sales<\/strong><\/h3>\n

Japanese technologies have traditionally been recognized for their precision, durability, and safety. However, competition in Vietnam is intensifying, particularly from suppliers in China, South Korea, Europe, and local system integrators. To convert their technological advantages into sustainable revenue, Japanese companies need to shift their value proposition from simply providing \u201cmachinery\u201d to delivering measurable \u201coperational outcomes.\u201d<\/p>\n

Start with a measurable operational bottleneck<\/em><\/strong><\/h4>\n

The proposal should be built around a specific operational challenge, such as high defect rates, unplanned machine downtime, labor shortages in inspection processes, inventory discrepancies, or prolonged picking times. Two to four baseline performance indicators should be recorded before launching the pilot to ensure that results are evaluated based on measurable improvements rather than subjective perceptions. This approach also helps accelerate the investment approval process.<\/p>\n

Assessing existing factory readiness<\/em><\/strong><\/h4>\n

Initial assessments should cover equipment age and communication protocols, data quality, factory layout, safety standards, operator capabilities, and cybersecurity requirements. If data availability is insufficient, the first phase may focus only on installing additional sensors and establishing standardized data collection processes. AI implementation should not be prioritized before ensuring the reliability and quality of the underlying data.<\/p>\n

Design modular pilots and demonstrate total cost of ownership (TCO)<\/em><\/strong><\/h4>\n

The pilot should be small enough to minimize risks while being sufficiently large to measure operational impact. Suppliers should clearly separate core hardware, software, system integration, training, maintenance, and expansion options. Instead of focusing solely on the initial purchase price, proposals should evaluate the total cost of ownership, including energy consumption, consumables, spare parts, equipment downtime, and asset lifespan.<\/p>\n

Build local technical and service capabilities<\/em><\/strong><\/h4>\n

Japanese companies do not necessarily need to immediately establish large-scale local subsidiaries; however, they must clearly define responsibilities for site assessment, installation, programming, training, warranty services, and emergency support. Partnering with system integrators, MES\/WMS software providers, technical distributors, and universities in Vietnam can shorten the time required to develop local capabilities. Service-level commitments, including response time, spare parts availability, and knowledge transfer processes, should be formalized through specific service standards.<\/p>\n

Expand from individual processes into scalable connected platforms<\/em><\/strong><\/h4>\n

Once a pilot achieves its target performance, the solution can be expanded to other production lines or factories. Open architecture, APIs, data standards, and access control mechanisms will determine scalability. At the same time, cybersecurity should be incorporated from the initial design stage, particularly when production equipment is connected to enterprise networks or cloud platforms. The ultimate goal is not to lock customers into a specific piece of equipment, but to create a platform that enables customers to continue investing and expanding step by step.<\/p>\n

Vietnam represents a growing opportunity for Japanese industrial automation companies. However, success will depend not only on technological superiority, but also on the ability to solve practical factory challenges through measurable ROI, flexible integration, and strong local support capabilities. Companies that position themselves as long-term automation partners rather than equipment suppliers will be better positioned to capture Vietnam\u2019s manufacturing growth.<\/p>\n

Read more<\/strong><\/h3>\n

Suggestions for investors in Vietnam’s Smart Manufacturing market<\/a><\/p><\/blockquote>\n