Vietnam Industrial Automation Market By Component, By Enterprise Size, By Industry, By Region, Competition, Forecast and Opportunities, 2020-2030F

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.

The Vietnam Industrial Automation Market is witnessing robust growth, driven by the country's rapid industrialization, government-backed digital transformation initiatives, and increasing foreign direct investment (FDI) in manufacturing. With Vietnam emerging as a regional manufacturing hub, particularly in electronics, automotive, textiles, and food processing, the demand for automation technologies has surged across both discrete and process industries. The growing need for efficiency, precision, and cost optimization has propelled adoption of programmable logic controllers (PLCs), human-machine interfaces (HMIs), industrial robots, and control systems. Furthermore, Vietnam's participation in free trade agreements and the China-plus-one strategy have encouraged multinational manufacturers to set up or expand production in Vietnam, further intensifying the need for advanced industrial automation solutions.

Automation in Vietnam spans across hardware, software, and services. Hardware dominates the market, with significant demand for sensors, motion control systems, robotics, and industrial networking. Software solutions, including Manufacturing Execution Systems (MES), Supervisory Control and Data Acquisition (SCADA), and Distributed Control Systems (DCS), are gaining traction as companies prioritize process transparency and centralized control. Meanwhile, services such as integration, maintenance, and post-sales support have become essential, especially as small and medium-sized enterprises (SMEs) seek to implement affordable automation gradually. The Vietnamese government's focus on Industry 4.0, reflected in national programs promoting smart factories, IoT, and digital transformation, has provided further momentum to market growth.

Major international players such as Siemens, ABB, Schneider Electric, Mitsubishi Electric, and Rockwell Automation play a critical role in shaping the market, while local integrators like FPT Software and Autotech Machinery are instrumental in bridging the gap between global technology and localized needs. As digitalization accelerates and the government continues to push for smart manufacturing adoption, the Vietnam Industrial Automation Market is poised for continued expansion, presenting significant opportunities for both global suppliers and local innovators.

Key Market Drivers

Rising Foreign Direct Investment (FDI) and Global Manufacturing Shift

Vietnam is rapidly becoming a key global manufacturing hub, largely due to geopolitical shifts and its trade openness. In 2023, the country attracted over USD36 billion in FDI, marking nearly a 30% increase from the previous year. The electronics and high-tech sectors alone accounted for more than 65% of new investment inflows. Industrial production expanded by 10.3% in Q2 2025, supported by new manufacturing setups. Export value jumped by 18% to approximately USD117 billion in Q2 2025, while imports climbed by 18.8% in the same period. The trade surplus stood at USD4.4 billion during the same quarter. These figures reflect the influx of high-tech factories from companies seeking China+1 diversification. New entrants often adopt automation technologies like robotics, PLCs, and smart control systems from the outset, accelerating automation penetration in Vietnam's industrial zones.

Key Market Challenges

Limited Technical Expertise & Workforce Readiness

Despite strong enthusiasm, a core challenge lies in the scarcity of skilled automation professionals. Many Vietnamese manufacturers lack staff with hands-on experience in PLC programming, IIoT system deployment, and predictive-maintenance analytics. Reports indicate that only around 30% of SMEs have staff trained in digital manufacturing methodologies, and less than 20% can independently configure robotics systems. While large exporters often bring in foreign experts, local talent pipelines are often insufficient-less than 10 universities currently offer specialized robotic engineering courses, and apprenticeship programs cover fewer than 500 students annually. This training gap slows down projects, often doubling commissioning timelines-from a planned 6 months to over a year. As a result, many firms depend on international system integrators or short-term consultants, adding extra 15-20% cost premiums. And every time a factory upgrades software or adds machines, retraining downtime can stretch to 3-4 weeks. Overcoming these human-capital limitations is essential. Without a sizable pool of competent automation engineers and technicians, widespread adoption remains constrained to a few export-oriented enterprises, leaving local manufacturing and more dispersed SMEs struggling to embrace full automation.

Key Market Trends

Growth of Cloud-Based and Edge Computing Solutions

Cloud-based automation platforms and edge computing are transforming how Vietnamese manufacturers manage operations and data. Instead of relying solely on on-premise infrastructure, companies are increasingly adopting hybrid models where critical real-time control functions are performed at the edge (near the machines), while long-term data analytics, reporting, and enterprise integration happen via the cloud. This dual approach helps reduce latency while enabling deeper business insights. For example, real-time edge devices now handle tasks like anomaly detection, safety shutdowns, or line optimization. Meanwhile, cloud platforms are used for performance benchmarking, energy management, and predictive analytics across multiple facilities. This trend is gaining momentum particularly in regions with strong internet connectivity, such as Hanoi and Ho Chi Minh City. Cloud-native SCADA and manufacturing dashboards are also enabling remote operations and diagnostics, especially valuable for multi-site operators. Vietnamese manufacturers are finding these architectures scalable and cost-efficient, especially in supporting new product lines or overseas client audits. As local data centers and 5G networks improve, the use of cloud- and edge-enabled automation is likely to become standard across the industrial sector.

Key Market Players

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

Report Scope:

In this report, the Vietnam Industrial Automation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Vietnam Industrial Automation Market, By Component:

• Hardware
• Software
• Services

Vietnam Industrial Automation Market, By Enterprise Size:

• Large Enterprises
• Small & Medium Enterprises

Vietnam Industrial Automation Market, By Industry:

• Process Industries
• Discrete Industries

Vietnam Industrial Automation Market, By Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam Industrial Automation Market.

Available Customizations:

Vietnam Industrial Automation Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).