The issue was highlighted at a press briefing on March 10 announcing the Vietnam Smart Factory Exhibition 2026 (VSE) and the Vietnam Hardware and Hand Tools Expo (VHF).

Speakers at the event said the global manufacturing landscape is becoming increasingly polarized. Chinese hardware products - including metal items made from copper, iron and aluminum used in construction and mechanical industries - dominate the market through competitive pricing.

Meanwhile, imports from Europe maintain their strong position in the high-end quality segment.

Steven Ni, a representative of Uninet Exhibition in Singapore, said Vietnamese hardware manufacturers cannot rely on traditional low-cost outsourcing or attempt to compete purely on price if they want to challenge imported products.

Competing through cheap labor is no longer a sustainable advantage as global technical standards become increasingly strict. Domestic enterprises need to shift from supplying low-cost products to delivering optimized value.

According to Ni, the most suitable market position for Vietnamese companies today lies in the mid- to upper-mid segment, where customers look for stable quality, streamlined design, reasonable pricing and flexible services.

Vietnam also enjoys several unique advantages, including a strategic geographic location, faster delivery times and relatively low logistics costs within the ASEAN region.

“Vietnamese businesses do not need to be like China, nor can they replicate Europe. But they can become a smart choice that balances quality, cost and service,” he said.

Smart manufacturing ecosystem

Moving toward higher value segments will require Vietnamese manufacturers to transform their operating models and adopt core technologies such as artificial intelligence, the Industrial Internet of Things, robotics and digital twin systems to improve quality control.

Vo Xuan Hoai, Deputy Director of the National Innovation Center (NIC), said smart manufacturing is among the key sectors prioritized by the Vietnamese government.

These foundational technologies are fundamentally changing how factories operate, while also optimizing supply chains.

Vietnam currently has around 2,000 companies operating in the supporting industries sector. Some of them have already joined the supply chains of multinational corporations.

However, to expand their scale and capabilities, businesses need platforms to connect with partners, exchange experience and access new technologies.

The VSE and VHF exhibition series aims to provide such a platform. The events are organized by the National Innovation Center in collaboration with Uninet Exhibition, EIMS Korea-Vietnam and the Busan Exhibition and Convention Center.

The exhibitions are expected to feature nearly 500 booths from about 400 companies representing more than 30 countries, with foreign enterprises accounting for around 60%.

Organizing the two exhibitions simultaneously will create a comprehensive industrial ecosystem.

The VHF exhibition will showcase hardware tools, mechanical components and industrial accessories, while VSE will introduce smart factory technologies such as unmanned aerial vehicles, automation systems and 3D printing.

Organizers expect the events to serve as a strategic networking platform, accelerating digital transformation in Vietnam’s manufacturing sector and helping local businesses master comprehensive smart factory solutions.

Du Lam