Auto parts sector moves into fast lane

HANOI: Vietnam’s auto parts industry is rapidly emerging as a key player in the region, overcoming long-standing limitations once symbolised by the so-called “screw curse” – the inability to produce anything beyond basic components.

Today, Vietnamese manufacturers are producing a wide range of advanced components, including electric motors, cables, digital displays and electronic modules.

With Vietnam’s domestic automotive market reaching a scale considered attractive for long-term investment, industry experts have called for a coordinated and strategic push to develop the entire automotive supply chain.

This embraces not only attracting foreign direct investment (FDI), but also the strengthening of local enterprises, particularly small and medium enterprises (SMEs) in the ecosystem.

Among those is An Thinh Technology Co, an SME located in the Tan Thuan Export Processing Zone in Ho Chi Minh City.

Founded in 2007, An Thinh began as a manufacturer of household electrical items such as sockets, plugs and power cords.

And it was not until 2019 that the company pivoted into the automotive sector, producing wiring components and car jacks for both domestic and international brands. Since then, its sales have grown by double digits annually.

Nguyen Khanh Linh from An Thinh Technology Co said that the shift required more than just new equipment.

“The biggest challenge was changing the mindset of the engineering team to meet the automotive industry’s strict quality standards,” he told saigontimes.vn.

In Dong Nai Province’s Giang Dienn Industrial Park, another SME, Vnines Innovation, is also making its mark.

Founded in 2020, the company focuses on electric motors, controllers and electronic modules for electric vehicles and motorbikes.

According to its deputy director of quality management department, Ho Khac Tu, the company already supplies major domestic automakers and exports to markets in North America, Europe and Asia.

Amphenol RF Vietnam, located in Tan Kim Industrial Park in Tay Ninh Province, is one of the newest entrants to the sector.

The factory was established in May 2024, following a strategic decision by its US-based parent company to relocate production from China to Vietnam, plant manager Nguyen Phuoc Hien told saigontimes.vn.

Hien noted that the facility specialises in assembling radio frequency (RF) connectors and RF cables for automobiles.

Industry experts said the growing participation of SMEs is the clearest indicator of Vietnam’s advancing auto parts industry.

Vietnam’s automotive supply chain is not only expanding, it is maturing.

As of May 20, 2025, Vietnam had 858 enterprises and manufacturing facilities certified to the International Automotive Task Force (IATF) standards, up from just 38 facilities a mere 18 months prior, according to data from the Vietnam Association for Supporting Industries.

This represents a 22-fold increase in the short span.

Vietnam now ranks second in South-East Asia, trailing only Thailand (1,947) and ranking ahead of Malaysia (639).

On a broader regional scale, Vietnam is now seventh out of eight countries in Asia listed by IATF that have more than 500 certified facilities.

Official data from the Industry and Trade Ministry offered further insight. As of April 2025, more than 360 Vietnamese companies were directly involved in the automotive supply chain.

When indirect suppliers are included, the ecosystem expands to around 5,000 companies.

Of them, 70% supply only domestic manufacturers, 8% serve foreign firms and 17% supply both. — Viet Nam News/ANN

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