Manufacturing industry is a big part of Vietnam’s GDP in 2019: 16.48% of the country’s total GDP, approximately VND 995 trillion, and a 6.5% GDP growth. In 2018, the manufacturing industry of Vietnam received VND 518 trillion investments, and these high foreign investments also served as a huge share of the country’s GDP in the same year.
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Thinking of getting into this profitable market? This article elaborates the top 6 small business ideas in Vietnam’s manufacturing industry that are worth pursuing.
Top 6 Manufacturing Business Ideas in Vietnam
1. Garment and Clothing
Garment and clothing manufacturing attract investors due to its rapid profit-generating model. A small production area is enough to get a garment and clothing manufacturing business up and running. Thanks to Vietnam’s open business policy, it enables garment producers to receive orders from different member countries and export the goods internationally.
2. Laundry Detergent Production
The making of laundry detergent is very simple and this is why laundry detergent production is one of the most profitable manufacturing businesses as well. However, for this type of production, a large manufacturing warehouse is required.
3. Footwear Production
Footwear production is an easy and simple manufacturing model in Vietnam too, especially rubber footwear production. Most business owners make footwear goods at home, small workshops, or rental shoe factories. It is obvious why this is a lucrative sector in Vietnam’s manufacturing industry as footwears are an essential consumer product in every corner of the world.
4. Carton Production
Carton production has been gaining great momentum in Vietnam. The demand for carton boxes has soared from 20% to 30% over the past few years due to the booming e-commerce development in the country. Products that consumers purchase online require carton boxes for transportation to avoid goods damage.
5. Doors Made of Aluminum
Although existing on a small scale, we should not leave aluminum doors manufacturing out of the top manufacturing business ideas. In recent years, the sales of aluminum doors in Vietnam has surged impressively with their prices increasing by more than 30%.
What is more, with the shutting of illegal aluminum supplies from overseas, the domestic aluminum doors market in Vietnam has seen so many more opportunities for investors to tap into.
6. Plastic Production
Things made of plastics such as bowls, cups, and buckets are still widely used in Vietnam and many locals consider them as part of their cheap essentials. Plastic product manufacturing is a supporting sector for other industries and it only requires low investments: a small factory and inexpensive labour.
How to Set up a Manufacturing Company in Vietnam
The duration to finish setting up Vietnam’s manufacturing company is four months on average.
Below are what the steps look like:
- Determine the location of the production factory. The location options are high-tech zones, within or outside the industrial parks, export processing zones, and economic zones.
- Obtain an Investment Registration Certificate (IRC) and then the Enterprise Registration Certificate (ERC) from the Department of Planning and Investment in Vietnam.
- Once you have received the business registration certificate, you must contribute to the capital within 90 days.
In addition, sub-licenses that are enforceable for manufacturing are fire protection license and report of environmental protection. Some kinds of manufacturing products require more conditions to be met. For example, agricultural products shall need an approval certificate from the Ministry of Agriculture and medical products need a quality certificate from the Ministry of Health.
How Cekindo can Assist
To have a successful business in the Vietnam manufacturing industry with fewer challenges and resources wasted, it is vital to seek proper advice and assistance. Cekindo can help your business optimise outcomes for both the short term and long term.
For many years, Cekindo has worked with small, medium, and large enterprises to set up and scale their manufacturing businesses efficiently via various proven measures and processes. We design our approaches to help your organisation become a high-performance business, with the expertise of our seasoned professionals and business consultants.
Enquire about our business advisory services by completing the form below.