Vietnamese metal processing industry has broad prospects for development

Manufacturing industries in the Asia Pacific region can clearly feel the uncertainty of the global economy. The economic growth of some major Asian countries (such as Japan, China, and India) is slowing, and it is expected that this will produce a "trickle-down effect" on the metal processing industry that relies heavily on manufacturing.

The global economic crisis in 2009 had a huge impact on the manufacturing industry, causing the metal processing industry to slow down. With another global economic crisis imminent, growth in the metal processing industry in Asia Pacific is expected to remain weak in 2012.

In 2009, the global machine tool output decreased from 81 billion U.S. dollars in 2008 to 55 billion U.S. dollars. Asian countries account for approximately 50% of the global machine tool market (US$27 billion) and have surpassed European countries. In this economic crisis, the most severely affected Asian country is Japan, and its machine tool industry output value has fallen by nearly 60% from the previous year. In 2009, China ranks first in the world in the consumption of new machine tools. In 2010, the production of CNC CNC machine tools in China increased by approximately 65% ​​year-on-year.

In the past few years, in order to achieve the transition from an agricultural drive to an industrial-driven economic structure, the Vietnamese government has taken some reform measures. In 2011, Vietnam’s economic growth rate is expected to reach 5.9% (6.78% in 2010), which is a remarkable achievement given the weak global economic environment.

Vietnam has established trade relations with more than 150 countries and regions, and its trade volume with other countries has been steadily rising, which has played a crucial role in its economic development. Vietnam mainly imports machines, parts, refined oil, steel products, textile raw materials, leather and cloths from mainland China and Taiwan, Singapore, Japan and South Korea.

In 2010, the annual growth rate of industrial production in Vietnam was 19%, while the annual growth rate of imported modern technologies reached 30%. Only 7% of Vietnam's metal processing and industrial products are manufactured in the country, and the remaining 93% are imported. Among imported products, machine tools and parts accounted for the largest proportion. Vietnam is the fifth largest motorbike producer in the world, and its motorcycle parts market has great potential. In order to increase industrial competitiveness and added value of export products, the role of the machine tool is crucial. Vietnam's industry is rapidly developing, which has brought about a huge demand for machinery, equipment and technical solutions.

It is expected that Vietnam will adopt some policy measures that have a significant positive impact on the metal processing industry, including zero tariffs on imported machine tools. Due to the strong growth of some important industries (such as shipbuilding, electrical and electronics, automobiles, etc.), Vietnam's metal processing industry is also expected to increase substantially in the next few years.

Vietnam’s goal is to become an industrialized country by 2020. The country's manufacturing companies are keen to use modern machinery and technical solutions to increase production capacity and product quality. This also provides opportunities for machine tool manufacturers in other countries to enter this market.