Vietnamese Auto Parts Industry Bursting Forward, Shedding Past Constraints
In the dynamic world of automotive manufacturing, Vietnam is making a significant mark, with a growing number of Small and Medium Enterprises (SMEs) playing a crucial role. One such SME is An Thinh Technology Co, a company that has transitioned from manufacturing household electrical items to producing advanced automotive components.
Founded in 2007, An Thinh Technology Co made the shift to automotive production in 2019, a move that required a change in the mindset of its engineering team to meet the industry's strict quality standards, particularly the International Automotive Task Force (IATF) standards. This change has paid off, with the company experiencing double-digit annual sales growth since the shift.
An Thinh Technology Co is located in the Tân Thuận Export Processing Zone in HCM City and produces a wide range of automotive components. The company aims to begin producing car wiring harnesses in the near future and plans to expand its factory, pending approval from a foreign carmaker.
Another Vietnamese SME making waves in the automotive industry is Vnines Innovation. This company, based in Tây Ninh Province's Tân Kim Industrial Park, focuses on electric motors, controllers, and electronic modules for electric vehicles (EVs) and motorbikes. Vnines Innovation supplies major domestic automakers and exports to markets in North America, Europe, and Asia. Tú from Vnines Innovation plans to increase factory capacity, boost output, and diversify into components for electric vehicles and motorbikes.
The growing participation of SMEs like An Thinh Technology Co, Vnines Innovation, and Amphenol RF is considered the clearest indicator of Vietnam's advancing auto parts industry. In fact, as of April 2025, more than 360 Vietnamese companies are directly involved in the automotive supply chain, with 25% of these enterprises participating in the global automotive supply chain.
Foreign direct investments in Vietnam's manufacturing sector are also on the rise, with leading companies like Luxshare-ICT (China), GE Vernova (USA), and Hailide Fibers (Hong Kong) collaborating with local SMEs in the automotive supplier industry. These companies have made significant investments in Vietnam, exemplifying the country's growing appeal as a manufacturing hub.
However, challenges remain. Amphenol RF, a new entrant to the Vietnamese automotive parts industry, faces a major obstacle in sourcing skilled labor for its factory workforce expansion. This is a common issue faced by many SMEs in the sector.
Despite these challenges, the future looks bright for Vietnam's auto parts industry. A recent report by Research and Markets projects the industry to be valued at $13 billion by 2032. With the continued growth of SMEs like An Thinh Technology Co and Vnines Innovation, Vietnam is poised to become a significant player in the global automotive supply chain.
In conclusion, the shift from household electrical items to automotive production by An Thinh Technology Co, the growth of SMEs like Vnines Innovation, and the influx of foreign direct investments are all indicative of Vietnam's thriving auto parts industry. As the country continues to invest in IATF-certified facilities and improve its quality standards, it is expected to climb the ranks in the global automotive supply chain.
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