Vietnam changes role from cheap factory to high-tech center

Song Minh |

Vietnam is gradually positioning itself as a high-tech manufacturing center of the region, a link in the global semiconductor industry.

The Bangkok Post published an article stating that Vietnam has become a rising star, reshaping the regional investment context.

The long-term goal is to become a high-tech manufacturing center, with the bold ambition to become a regional center for semiconductors.

Make Vietnam a high-income country by 2045, in which strong investment in infrastructure, industry and human resources is considered a key pillar.

In addition, competitive labor costs along with a young and abundant labor force continue to create advantages for the long-term growth of the economy.

Vietnam's strong transformation originated from the Doi Moi reform in 1986 - a milestone in development thinking.

Abandoning the centralized planned economy model, gradually opening up to the private economic sector, attracting foreign investment and deeply integrating into global trade has placed Vietnam on a fast and sustainable growth trajectory for many decades. Thanks to that, Vietnam has risen to become one of the fastest growing economies in Asia.

Another important factor contributing to strengthening investor confidence is stability in policies and development orientations. In the context of volatile global economy, Vietnam still maintains a relatively consistent policy environment, creating conditions for businesses to plan long-term strategies.

The Government continues to prioritize upgrading the industrial base, modernizing infrastructure and developing high-quality human resources, considering this as a prerequisite to enhance the national economic position.

The ambition to become a semiconductor manufacturing center clearly reflects Vietnam's determination to rise to higher levels of the global value chain. Along with that, large-scale investments in roads, seaports and airports not only serve industrial production but also strongly support trade, logistics and tourism.

Increasingly complete infrastructure is helping Vietnam significantly improve connectivity capacity, reduce transportation costs and enhance the competitiveness of exported goods.

Labor advantages continue to be an important fulcrum for the industrialization process. Vietnam possesses an abundant labor supply, capable of meeting the needs of many industries, from textiles, garments, footwear to electronics and high technology.

Along with promoting vocational training and improving skills, the young workforce is expected to support the transition to higher value-added industries.

Vietnam emerged as a strategic beneficiary of the global supply chain restructuring. Fastbull (Hong Kong, China) commented that Vietnam enters 2026 with many strategic advantages, although increased costs and increasingly strict compliance requirements are posing many new challenges.

Reality shows that Vietnam continues to maintain its role as a relatively stable and growing manufacturing platform. The manufacturing sector maintained positive growth momentum throughout 2025 and is forecast to continue to expand in 2026.

Vietnam's advantage lies in a dual position: both an active member of global trade and a strategic destination in the process of diversifying the supply chain of international corporations.

Song Minh
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