Just back from Ho Chi Minh assessing industrial park opportunities. Vietnam has captured more than 2% global market share in 100+ key products since 2010, largely due to China’s rising costs. Our analytics also confirm that global manufacturing clusters in Ho Chi Minh, as well as Hanoi, are significantly ahead of other regional competitors.
My 5 key takeaways
- Infrastructure remains a potential constraint. But the median distance to port is just 22 km for most of Ho Chi Minh’s manufacturing clusters.
- Industrial activity would benefit from larger and more integrated industrial parks, especially as other ASEAN countries seek to catch-up.
- The complexity of supply chain linkages with China will require investments into logistics to support further manufacturing growth.
- The under construction Metro Line 1 will link Ho Chi Minh’s CBD to key industrial clusters and will reshape the distribution of retail activity.
- Vietnam’s railway renewal plans are long-term but will be key to improving manufacturing connectivity across the Greater Mekong region.