Vietnamese engineering firms step up integration into global supply chains

Dr. Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Association of Supporting Industries (VASI), observed a marked rise in German interest in Vietnam’s manufacturing sector, describing Vietnam as “a rising star” in global industry.

A bolt and screw factory in the Cam Khe Industrial Park, Phu Tho province. (Photo: VNA)
A bolt and screw factory in the Cam Khe Industrial Park, Phu Tho province. (Photo: VNA)

Berlin (VNA) – A delegation of nearly 20 Vietnamese firms in mechanical engineering, mould-making, automation and supporting industries are showcasing their products and capabilities at Hannover Messe 2026, in Hanover, the capital of Lower Saxony, Germany from April 20 to 24.

Amid ongoing shifts in global supply chains and German companies’ efforts to mitigate risks, cooperation with new markets has gained increasing attention. Peter Eisenschmidt, Senior Director of International Affairs at Hannoverimpuls – the city’s trade and investment promotion agency, noted that global economic changes are prompting companies to seek alternative markets. Vietnam and Southeast Asia are emerging as key destinations of interest for German industry, he said.

Dr. Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Association of Supporting Industries (VASI), observed a marked rise in German interest in Vietnam’s manufacturing sector, describing Vietnam as “a rising star” in global industry. She noted that while Hannover Messe a decade ago focused heavily on production equipment and automation, the 2026 edition reflects a clear shift toward artificial intelligence (AI) and data-driven automation systems.

Facing a shortage of skilled labour, Vietnamese industrial firms are accelerating automation and adopting AI-based vision solutions to reduce dependence on manual work. This shift is driving broader adoption of advanced technologies and data systems, particularly among small- and medium-sized enterprises in the manufacturing sector.

Hannover Messe with solutions for manufacturing automation and components for the automotive, motorcycle and household appliance industries. Its Chairman Luong Duc Thu expressed confidence in the firm’s technological capabilities, citing its experience in delivering highly automated industrial projects in Vietnam. He noted strong interest from European partners, particularly upon learning of the products’ Vietnamese origin.

However, Thu acknowledged that a key challenge for Vietnam’s supporting industries lies in integrating more deeply into global supply chains. Participation in international trade fairs is therefore seen as a strategic step to showcase capabilities, secure orders and build long-term partnerships. He also emphasised the need for stronger investment and policy support to help Vietnamese enterprises, especially in the private sector, enhance competitiveness.

Hannover Messe 2026 has attracted around 3,500 companies from more than 60 countries and territories, focusing on three main themes: smart manufacturing, digital ecosystems and energy for industry. Established in 1947, the fair has evolved from a post-war export initiative into the world’s leading platform for industrial technology and digital transformation./.

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