Smart manufacturing has moved to the forefront as Vietnam looks to boost production quality and capacity.

Backed by strong policy commitments, emerging “Lighthouse” factories, and growing
demand for greener, more resilient supply chains, Vietnam is positioning itself
to compete at the frontlines of advanced manufacturing. The window of opportunity
is wide open, industry leaders and global partners have said, but seizing it will
require speed, strategy, and sustained innovation.

Shift to ‘Lighthouse’
factories

Opening the panel discussion on “Smart Manufacturing and Global Supply Chains”
at the recent Autumn Economic Forum 2025, Mr. Tahar Kerkeni, Lead of Next Generation
Industrial Operating Systems at the World Economic Forum (WEF), sketched a panoramic
view of the Global Lighthouse Network – the global benchmark for smart manufacturing.

The network now includes 201 factories that have deployed advanced technologies
at scale, from AI and automated robotics to 3D printing and the Internet of Things
(IoT). The results are striking: average productivity is up 40 per cent, costs are
down 40 per cent, and carbon emissions have fallen by as much as 40 per cent. Mr.
Kerkeni noted that rapid advances in science and technology are reshaping global
value chains. Vietnam, he said, is at a pivotal juncture to emerge as a new manufacturing
hub, anchored by three pillars: innovation, sustainable development, and resilience.

Foxconn is currently Vietnam’s first and only operator of a Lighthouse factory,
serving as a tangible illustration of how technology can transform management, operations,
and productivity. According to Mr. Liu Zhongchang, Vice President and Chief Data
Officer at Foxconn Industrial Internet, as the world’s largest electronics manufacturing
services (EMS) provider, Foxconn operates eight Lighthouse factories worldwide,
but its Vietnam facility has posted the most impressive growth. Over the past decade,
workplace productivity at Foxconn Vietnam has climbed more than 50 per cent. In
2025 alone, revenue surged 83 per cent while the workforce grew just 20 per cent.

The rising trend of “reshoring” – bringing production closer to end markets
– is also accelerating momentum. Automation technologies are helping new factories
quickly reach performance levels comparable to long-established sites. This, Mr.
Zhongchang said, represents a “golden opportunity” for countries like Vietnam, provided
they invest early and strategically in technology.

A recent study by professional services company Accenture found that among
the world’s 4,000 largest companies, a growing share is committing to net-zero emissions
across their entire value chains, including suppliers. This shift presents significant
growth potential not only for major corporations but also for small and medium-sized
enterprises (SMEs).

Next manufacturing frontier

Mr. Tran Anh Tu, Deputy Director of the Information Technology – Industry Department
at the Ministry of Science and Technology (MoST), said that although Vietnam currently
has only one Lighthouse factory, this is a positive sign – a testament to the innovation
capacity of Vietnamese enterprises and a door opening towards advanced manufacturing.
“We expect the number of Lighthouse factories in Vietnam to increase in the near
future,” he added.

He outlined three strategic directions for developing the Lighthouse model
in Vietnam. First, Vietnam
must enhance digitalization, automation, and data governance before moving towards
more complex applications such as AI and advanced automation. Second, the government will prioritize
areas that can help businesses quickly access the Lighthouse model. Third, it is essential to build a strong
supporting ecosystem, including infrastructure, connectivity, digital platforms,
and support services.

Ms. Nguyen Da Quyen, Co-Director of the Center for Smart Manufacturing and
Supply Chains at the Ho Chi Minh City Center for the Fourth Industrial
Revolution (HCMC C4IR), observed that Vietnam is making clear progress, with rising
automation, particularly in manufacturing. Vietnam is one of the markets with a
high IoT adoption rate, with about 36 per cent of enterprises already applying IoT
solutions and the number of industrial robots also growing rapidly.

However, most businesses remain in the early stages of their digital transformation
journey, and 60 per cent of SMEs are only at the beginning. Notably, digital transformation
in Vietnam is taking place mainly at the shop-floor level. A recent survey revealed
that nearly 80 per cent of enterprises use Enterprise Resource Planning (ERP)
or Manufacturing Execution System (MES) software or data platforms, but only about
11 per cent have reached full automation.

Mr. John Chang from Foxconn emphasized three key factors: corporate culture
transformation, workforce transformation, and a clear technology roadmap. He added
that Foxconn has implemented a distinctive strategy: placing frontline workers at
the center of the digital transformation journey through comprehensive training
for technicians and operators, providing digital tools, and building an international
training program. “We have built a strong human-resource ecosystem over more than
a decade,” he said. “This model is now being replicated in Mexico and the US.”

Full-spectrum policy engine

Mr. Tu provided the discussion with detailed information on the support policies
Vietnam is implementing to enable the manufacturing ecosystem to grow. Regarding
strategic technologies, the Ministry of Industry and Trade has just announced a
list of priority technology groups, including leading global technologies such as
AI, big data, blockchain, and IoT, as “strategic technologies” for Vietnam.

There are currently 35 strategic technology fields. Building on this foundation,
MoST is developing a comprehensive, long-term program for the development of strategic
technology. The program introduced six key strategic technology products this
year, aimed at enhancing Vietnam’s capacity to master machinery and technological
systems.

A central objective is to place enterprises at the heart of innovation and
to encourage collaboration between businesses in technology development. MoST has
also established a strategic technology taskforce – the first time an innovation-driven
team has been formally integrated into the national operational structure, with
enterprises positioned as the primary actors.

On the legal front, the Ministry is drafting a series of new laws: the Law
on Artificial Intelligence, the Law on Digital Transformation, the Law on High Technology,
and the Law on Digital Technology, as well as an accompanying legal framework for
AI. All of these aim to create a favorable, stable, and streamlined environment
for business development.

In terms of human resources, Vietnam is opening its doors more widely to attract
top global experts and major technology corporations. For the first time, MoST is
rolling out a plan to attract world-class talent to support both technological development
and enterprise-level innovation capacity.

On infrastructure, several recent policies are enabling upgrades to systems
that support Industry 4.0: the deployment of 5G infrastructure in major cities,
the expansion of data centers, the development of smart industrial parks, and stronger
international cooperation in data governance.

On green transition, Decree No. 06/2022 and Circular No. 31/2023 add pressure
but also provide motivation in digital transformation. More than 1,900 high-energy-consuming
enterprises are required to measure and report energy use and emissions, driving
natural demand for digital tools to monitor and optimize operations.

Vietnam has demonstrated a clear and consistent direction over the past four
years. Politburo Resolution No. 52-NQ/TW and, most recently, Politburo Resolution
No. 57-NQ/TW both prioritize science and technology, innovation, and digital transformation.
This is exactly what the business community has been expecting: a long-term, stable
trajectory that helps Vietnam evolve from a technology adopter to a country with
genuine innovation capacity.

Finally, international cooperation is accelerating the pace of Vietnam’s transformation.
Through partnerships with C4IR and the WEF, Vietnamese enterprises can access global
smart manufacturing standards, assess their readiness, and begin the journey toward
a smarter, greener production model.

VET-Nguyet Ha