According to TechSci Research report, “Vietnam Industrial Automation Market – By Region, Forecast & Opportunities, 2030F”, The Vietnam Industrial Automation Market was valued at USD 2.52 Billion in 2024 and is expected to reach USD 4.21 Billion by 2030 with a CAGR of 8.78% during the forecast period. 

Vietnam’s industrial automation landscape is undergoing a major transformation, driven by rapid industrialization, rising foreign investments, and the country’s growing focus on Industry 4.0 adoption. As manufacturers across Vietnam seek to optimize production processes, enhance product quality, and reduce operational inefficiencies, automation has become the cornerstone of modern industrial strategy.

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Industry Key Highlights

  • The Vietnam Industrial Automation Market reached USD 2.52 billion in 2024 and is forecasted to grow at a CAGR of 8.78%, attaining USD 4.21 billion by 2030.

  • The market is witnessing strong momentum due to rising demand for smart manufacturing, industrial IoT integration, and government support for digital transformation.

  • Smart factory solutions and real-time monitoring systems are gaining rapid traction across major industries like electronics, automotive, and food processing.

  • The services segment is emerging as the fastest-growing component category, driven by the need for system integration, maintenance, and predictive analytics.

  • Central Vietnam is projected to be the fastest-growing regional market, fueled by foreign investments, infrastructure development, and expanding industrial zones.

  • Leading global players such as Siemens, ABB, Schneider Electric, Rockwell Automation, Mitsubishi Electric, and Honeywell are strengthening their footprint in Vietnam.

Market Overview and Dynamics

Vietnam’s economic rise has been closely tied to the expansion of its manufacturing sector. Over the last decade, the country has become a preferred destination for global manufacturers seeking to diversify supply chains beyond China. The government’s industrialization strategy emphasizes automation and digital transformation as core enablers of productivity, efficiency, and competitiveness.

As wages increase and skilled labor shortages persist, industries are accelerating their adoption of automation technologies to maintain cost-effectiveness. From assembly lines in automotive plants to precision control systems in electronics manufacturing, automation is optimizing production and enabling local enterprises to meet global standards.

Automation in Vietnam extends beyond manufacturing. Industries such as energy, oil and gas, logistics, and food processing are increasingly integrating automation systems for predictive maintenance, energy efficiency, and enhanced process control. The growing use of SCADA, PLCs, MES, and ERP platforms reflects Vietnam’s steady march toward industrial digitalization.

Emerging Trends in Vietnam’s Industrial Automation Market

A. Rise of Smart Factory Ecosystems

One of the defining trends in Vietnam’s automation journey is the rise of smart factories—integrated facilities that connect machines, people, and systems in real time. Manufacturers are deploying advanced software systems such as SCADA (Supervisory Control and Data Acquisition), MES (Manufacturing Execution Systems), and ERP (Enterprise Resource Planning) to achieve operational transparency.

 

B. Surge in Robotics and Collaborative Automation

The deployment of robotics in Vietnam’s industrial ecosystem is expanding rapidly, especially in high-precision and high-volume sectors like electronics, automotive, and packaging. Robots are increasingly used for assembly, welding, painting, and material handling tasks, where precision and speed are crucial.

However, the most transformative change comes from the emergence of collaborative robots (cobots). Unlike traditional robots confined within cages, cobots can safely operate alongside human workers. Their ease of programming, affordability, and flexibility make them highly attractive for small and medium-sized enterprises (SMEs)—a dominant part of Vietnam’s manufacturing landscape.

C. Integration of Artificial Intelligence and Cloud Platforms

Artificial Intelligence (AI) and machine learning algorithms are enhancing automation systems by enabling predictive analytics, anomaly detection, and quality inspection. AI-driven automation is helping factories identify inefficiencies and optimize workflows automatically.

D. Shift Toward Sustainable and Energy-Efficient Automation

Sustainability is increasingly shaping industrial automation strategies. Energy-efficient machinery, smart sensors, and digital power monitoring systems are helping industries reduce their carbon footprint. Manufacturers are also adopting green automation practices—using renewable energy sources, optimizing resource usage, and implementing closed-loop production cycles.

Key Market Drivers

A. Government Support and Industry 4.0 Policy

The Vietnamese government’s “National Digital Transformation Program to 2030” is a significant driver of automation adoption. With incentives promoting high-tech manufacturing and digital innovation, industrial automation aligns perfectly with Vietnam’s long-term economic vision. Tax exemptions, research grants, and public-private partnerships are fueling innovation across the automation supply chain.

B. Growing Foreign Direct Investment (FDI)

Vietnam continues to attract substantial foreign investment, particularly from electronics and automotive giants seeking cost-effective, high-quality manufacturing bases. Companies such as Samsung, Foxconn, LG, and Toyota are integrating advanced automation systems to enhance productivity and quality control. This influx of foreign technology and expertise has a ripple effect, encouraging local enterprises to adopt similar automation practices.

C. Demand for Productivity and Quality Enhancement

As competition intensifies and consumer expectations evolve, manufacturers are prioritizing precision, efficiency, and reliability. Automation technologies ensure uniform product quality, reduce human error, and enhance throughput—critical for sectors that export to international markets.

 

Key market players in the Vietnam Industrial Automation market are: -

  • Siemens     
  • ABB
  • Schneider Electric
  • Rockwell Automation
  • Honeywell
  • Emerson
  • Mitsubishi Electric
  • Yokogawa
  • Omron
  • Fanuc  

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Future Outlook

The future of the Vietnam Industrial Automation Market looks promising and transformative. As the country continues to solidify its position as a manufacturing powerhouse, automation will play an indispensable role in driving efficiency, innovation, and sustainability.

A. Increasing Digital Maturity

Vietnam is steadily moving from automation adoption to digital transformation maturity. The convergence of AI, cloud computing, big data, and robotics will redefine production paradigms. Factories will become more self-optimizing and adaptive, with real-time analytics guiding every operational decision.

B. Expansion Beyond Manufacturing

While manufacturing remains the primary growth driver, automation adoption will extend into logistics, utilities, construction, and agriculture. Smart logistics platforms, automated warehouses, and drone-based inspections are emerging as potential growth frontiers.

C. Focus on Cybersecurity and Data Governance

As industrial connectivity increases, cybersecurity will become a central concern. The protection of operational data, intellectual property, and supply chain integrity will drive demand for secure automation systems and compliance frameworks.

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