FDI firms speed up smart factory development in Vietnam

The rapid expansion of industrial parks such as Thang Long, VSIP and Amata has not only increased manufacturing capacity but also heightened the need for digital transformation to improve competitiveness and operational efficiency.

As global supply chains continue shifting under the “China+1” strategy, manufacturers in Vietnam are facing mounting challenges, including fragmented data across factories, disconnected management systems and gaps between management reporting and actual production-line performance.

These challenges are pushing businesses to rethink how they operate in order to stay competitive.

Cloud ERP, particularly SAP Cloud ERP, is becoming a preferred management platform for many international manufacturers due to its ability to enable real-time data connectivity, support deployment across multiple factories, integrate with Manufacturing Execution Systems (MES) and Internet of Things (IoT) platforms, and meet international security and compliance standards.

However, successful implementation requires companies to balance global management standards set by parent groups with local requirements in Vietnam, including legal, workforce and operational needs.

For multinational manufacturers operating factories across different markets, the challenge goes beyond digitalization to standardizing management across the entire system.

The 2-Tier ERP model is increasingly being adopted by multinational groups to help factories in Vietnam align with corporate governance standards while maintaining flexibility in local operations.

This model is seen as a practical way to balance global standardization with local adaptability. The Smart Factory trend, together with broader IoT adoption, is also accelerating manufacturing modernization across industrial parks.

Smart sensors, real-time equipment monitoring and production data analytics are helping manufacturers predict equipment failures, reduce downtime, improve quality control, optimize energy use and build stronger data foundations for management.

Integrating IoT with Cloud ERP on SAP’s platform enables a more integrated operating model, connecting machine data, production, finance and business operations.

Many FDI manufacturers in Vietnam have already reported practical benefits from digital transformation efforts.

One example is Yamaha Motor Parts Manufacturing Vietnam (YPMV), which successfully deployed SAP Cloud ERP with consulting and implementation support from TDI APJ.

The project helped integrate systems, meet management requirements from its parent group in Japan and ensure production continued without disruption during the transition.

YPMV’s experience shows that digital transformation is no longer a future goal but has become a business necessity for manufacturers.

As competitive pressure intensifies, the ability to build smart factories, manage real-time data and operate on digital platforms will increasingly shape competitiveness in global supply chains.

Drawing on its experience in SAP Cloud ERP consulting and implementation for FDI manufacturers in Vietnam, Malaysia and Singapore, TDI APJ will host a seminar titled “Practical Perspectives on Digital Transformation in Manufacturing” for manufacturing businesses in Vietnam.

The event will bring together Japanese experts, representatives from Yamaha Motor Parts Manufacturing Vietnam and SAP specialists to share hand-on experience in Cloud ERP implementation, 2-Tier ERP and Smart Factory development.

The seminar is expected to provide manufacturers with an opportunity to stay updated on industry trends, learn from real-world projects and engage directly with experienced experts.

Local authorities, FDI firms propose measures to advance foreign-invested sector

Representatives from localities and FDI firms on June 30 put forward measures to attract high-quality investment and develop Vietnam’s capital market at a national conference in Hanoi on studying, disseminating and implementing the Politburo’s Resolution No. 10-NQ/TW on developing the foreign-invested economic sector.

FDI firms import nearly US$20 billion worth of machinery in five months

VOV.VN - Foreign-invested enterprises (FDI) imported nearly US$20 billion worth of machinery and equipment during the five-month period of 2026, signaling strong production expansion and foreign capital disbursement in Vietnam.