Domestic manufacturing and processing companies, including foreign-invested enterprises, continue to heavily rely on imported raw materials, intermediate products, and production machinery. This dependency is a key factor behind the low localization rate. Therefore, deeper integration into the supply chain and reducing reliance on imports have become crucial goals for manufacturing and processing businesses in Vietnam.

The Purchasing Managers’ Index (PMI) of Vietnam rose to a four-month high of 52.5 in April from 51.9 in March, signalling a solid monthly improvement in the health of the manufacturing sector, according to a Nikkei-IHS Markit survey.