Executive Summary
- Vietnam’s Manufacture of Computer, Electronic & Optical Products sector (VSIC 26) continues to represent one of the country’s most strategically important industrial pillars, supported by sustained foreign direct investment, export-oriented production, and deep integration into global electronics supply chains.
- Between 2022 and 2024, the sector demonstrated relative revenue stability (CAGR +0.1%), reflecting Vietnam’s established role as a large-scale manufacturing base rather than a high-growth expansion story. Production activity remained resilient, with cost structures expanding moderately alongside output growth.
- At the operating level, profitability softened (Operating Profit CAGR -1.4%), while net profitability declined more visibly (Net Profit CAGR -7.8%), suggesting margin normalization dynamics. Rising input costs, labor adjustments, technology upgrades, and competitive pricing pressures contributed to earnings compression despite stable revenue.
- Overall, Vietnam remains firmly positioned as a critical electronics manufacturing hub in Asia, particularly for consumer electronics, communication equipment, and components assembly. The sector’s trajectory increasingly reflects efficiency, scale discipline, and supply chain positioning rather than pure topline acceleration.
Industry Snapshot 2024
The Manufacture of Computer, Electronic & Optical Products sector (VSIC 26) encompasses a broad ecosystem of manufacturers producing electronic devices, communication equipment, components, consumer electronics, and precision electronic instruments.
In 2024, companies operating within VSIC 26 generated Total Revenue of USD 155,189 million, representing a CAGR of +0.1% from 2022 to 2024, indicating stable output and sustained industrial activity. Over the same period, Cost of Goods Sold reached USD 141,356 million, growing at a CAGR of +2.3%, highlighting moderate cost expansion driven by materials, components, and production inputs.
The sector recorded Operating Profit of USD 7,837 million, reflecting a CAGR of -1.4%, signaling gradual operating margin pressure. Net Profit totaled USD 6,214 million, declining at a CAGR of -7.8%, suggesting that non-operational factors, financing costs, depreciation, and investment cycles weighed on bottom-line performance.
As of 2024, 2,501 companies were active under VSIC 26, underscoring the sector’s scale, depth, and structural importance within Vietnam’s industrial landscape.
Industry Characteristics & Operating Landscape
Where do companies typically operate?
Electronics and high-tech manufacturing activity in Vietnam is heavily concentrated in Northern industrial provinces, notably Bac Ninh, Thai Nguyen, and Hai Phong, where multinational investments have established large-scale production clusters. These locations benefit from export-oriented infrastructure, established supplier ecosystems, logistics connectivity, and proximity to key manufacturing networks.
Cluster formation enables shared industrial capabilities, labor pooling, and supply chain efficiencies, reinforcing Northern Vietnam’s role as the country’s primary electronics manufacturing base.
What drives demand in this sector?
Demand is primarily shaped by global electronics consumption cycles, multinational production allocation strategies, and supply chain diversification dynamics. Korea-led investment continues to play a central role in Vietnam’s electronics output, while China+1 manufacturing strategies further support capacity utilization and supplier migration.
Vietnam’s competitive positioning – combining cost efficiency, trade integration, and manufacturing reliability – sustains demand for locally produced communication equipment, consumer electronics, and components destined for export markets.
What defines the operational model?
The sector operates under a scale- and integration-driven manufacturing model, where competitiveness depends on production efficiency, supply chain coordination, labor productivity, and continuous technology upgrading. Large manufacturers anchor extensive supplier networks, while operational performance is influenced by yield optimization, cost control, and cycle-time management.
Sustained investment in automation, quality standards, and process improvements increasingly differentiates higher-performing producers from purely labor-driven operations.
Interpreting 2022-2024 Performance
Revenue stability over the period reflects Vietnam’s maturity as an electronics manufacturing platform rather than cyclical volatility. However, the divergence between revenue and profitability trends indicates cost and margin pressures within the operating environment.
The faster growth of Cost of Goods Sold relative to revenue suggests rising production inputs, pricing competition, and incremental investments in manufacturing capabilities. The sharper decline in net profit relative to operating profit signals the influence of depreciation cycles, financing structures, and capital expenditure intensity common in high-tech manufacturing sectors.
Overall, sector performance points to a landscape where scale advantages remain intact, but profitability increasingly depends on efficiency improvements and value chain positioning.
What This Means for Investors
- For investors, Vietnam’s VSIC 26 sector offers exposure to one of Asia’s most strategically embedded electronics manufacturing ecosystems, supported by multinational production commitments and long-term supply chain realignment.
- Key considerations include:
- Cost structure resilience and margin management
- Positioning within multinational supply chains and supplier tiers
- Sensitivity to global electronics demand cycles
- Capital intensity and technology upgrading requirements
- Companies best positioned for long-term value creation are those capable of sustaining utilization efficiency, managing input cost volatility, and upgrading production capabilities to align with evolving global electronics standards.
- Vietnam’s electronics manufacturing story is increasingly defined by operational discipline and ecosystem durability rather than headline growth – a dynamic that favors scale-efficient and strategically integrated players.
About Datagent
Datagent is the trusted intelligence partner for company data and insights across Southeast Asia and beyond. We combine firmographics, financials, macro and micro economics into one integrated dataset — helping organizations uncover opportunities, assess markets, and make smarter, data-backed decisions across 11 dynamic economies.
Datagent provides a total of 61 firmographic data fields, comprising 22 non-financial, and 39 financial indicators with coverage spanning 2022–2024.
This report is for informational purposes only and does not constitute financial advice or an invitation to invest. Decisions should be based on independent research and professional consultation to avoid any unintended liabilities.