According to Vietnam Customs, exports of machinery, equipment, tools, and spare parts reached nearly US$5.94 billion in April 2026, up more than 26% compared to the same period last year.

The April export value raised the four-month figure to nearly US$20.93 billion, marking an increase of more than 22% year on year. By mid-May, export turnover had already reached approximately US$23.5 billion, indicating that the sector’s strong momentum remains intact.

US market drives Vietnam’s machinery export growth

The United States continued to be Vietnam’s largest export market for machinery and equipment, with turnover hitting US$8.68 billion in the first four months of 2026, accounting for more than 41% of the industry’s total exports.

The recovery of manufacturing and construction activities in the United States during the second quarter of 2026 has fueled demand for imported industrial machinery, components, and production equipment.

At the same time, many US companies are continuing to diversify supply chains away from China, creating new opportunities for Vietnam thanks to its competitive production costs, strategic location, and extensive network of free trade agreements.

Beyond the US market, Vietnam’s machinery exports to China also recorded sharp growth, exceeding US$2 billion and rising more than 66% compared to the same period last year.

The increase reflects closer integration between Vietnam and regional production networks. Many multinational corporations that established factories in Vietnam are now exporting machinery and industrial components back to China to support electronics assembly and manufacturing operations.

Rather than fully replacing China, Vietnam is increasingly becoming a complementary link in Asia’s manufacturing ecosystem, particularly in electronics and industrial production.

FDI sector continues to dominates exports

Notably, foreign direct investment enterprises continued to play a dominant role in Vietnam’s machinery export growth.

During the first four months, the FDI sector generated nearly US$19.88 billion in machinery exports, up more than 41% year on year and accounting for almost 95% of the sector’s total export turnover.

A number of large-scale manufacturing and processing projects entered stable operation from early 2026, significantly boosting Vietnam’s production and export capacity within a short period of time.

However, economists note that the heavy dominance of the FDI sector also highlights the limited participation of domestic enterprises in higher-value industrial supply chains.

Most export value currently comes from foreign-invested corporations, while Vietnamese companies largely remain concentrated in lower-value activities such as assembly, subcontracting, and basic component supply.

This raises questions about Vietnam’s long-term industrial self-reliance and how much the domestic economy can truly benefit from the ongoing global manufacturing shift.

In addition, major export markets such as the European Union are also imposing stricter environmental and sustainability requirements, including carbon emission regulations and product traceability standards.

Policies such as the Carbon Border Adjustment Mechanism (CBAM) and Digital Product Passport rules could become significant barriers for exporters in the coming years.

As international competition intensifies, analysts warn that Vietnamese firms may struggle to fully capitalise on global supply chain restructuring unless they improve technological capabilities and increase localisation rates.

Despite these challenges, the current export momentum suggests Vietnam is entering a major opportunity phase to strengthen its industrial position.

From an economy once heavily reliant on exports of textiles, footwear, and agricultural products, Vietnam is gradually moving deeper into industries with higher technical content and greater added value.

The key question now is whether domestic enterprises will be able to seize this opportunity and participate more deeply in global value chains.

Industrial production rises 9.2% on manufacturing growth in early 2026

VOV.VN - Vietnam’s industrial production continued its positive momentum in the first four months of 2026, with the Index of Industrial Production (IIP) rising 9.2% year on year, driven largely by strong growth in processing and manufacturing.