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Vietnam’s Auto Parts Industry Accelerates
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2025-11-11
As of May 2025, Vietnam boasts 858 enterprises and manufacturing facilities certified to International Automotive Task Force (IATF) standards—a 22-fold increase in just 18 months—signaling rapid industry maturation. Vietnamese manufacturers now produce advanced components such as electric motors and electronic modules, moving beyond the so-called "screw curse" of only basic parts. With a growing domestic auto market, experts urge a strategic push to develop the full supply chain, attracting foreign direct investment and supporting local SMEs. For example, Ho Chi Minh City’s An Thinh Technology shifted from household electrical goods to automotive wiring and jacks in 2019, achieving double-digit sales growth annually. Vnines Innovation in Dong Nai focuses on EV motors and controllers, exporting to North America, Europe, and Asia. Amphenol RF Vietnam, established in 2024, assembles automotive RF connectors. Vietnam’s auto parts sector is increasingly integrated globally, valued at USD4.5 billion in 2023 and forecasted to exceed USD 13 billion by 2032. Despite challenges in skilled labor and environmental compliance, companies are expanding capacity and diversifying products, driving fast-paced growth.
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