Vietnam ranks 3rd in Asia Manufacturing Index

According to Asia Manufacturing Index 2026, released by Dezan Shira & Associates, Vietnam, boasts a very favorable economic outlook, now ranks third.

The AMI 2026 captures the relative competitiveness of 11 major Asian manufacturing economies across 8 key pillars and 43 sub-parameters. This edition provides a structured and transparent benchmark designed to support fact driven comparisons at a time when manufacturing decisions have become increasingly complex.

According to AMI 2026, Vietnam’s economic outlook bolstered by the stabilization of its government after years of uncertainty regarding the succession of the former party secretary. This political stability is critical for investors, as it signals a consistent policy environment.

The country has also cultivated a relatively open investment environment for foreign businesses, enhancing its attractiveness as a manufacturing hub.

Infrastructure plays a pivotal role in Vietnam's success, with the country ranking 3rd in this tier, yet it faces challenges in meeting growing infrastructure demands. Key projects like Ho Chi Minh City's Long Thanh airport and the high-speed railway, which is not expected to be completed until 2035, highlight the slow pace of expansion.

Additionally, concerns over energy stability and the environmental toll of rapid manufacturing growth persist, with Vietnam ranking last out of 180 countries in the 2024 Environmental Performance Index (EPI) by Yale University.

Despite this, setting up a factory in Vietnam offers a logistical advantage, as the country's long coastline ensures proximity to the sea and ports, reducing reliance on extensive railway and highway networks, which only rank 8th in the Infrastructure Quality parameter.

Vietnam's significant infrastructure investment, however, ranking 2nd, underpins its ambition to become a global manufacturing leader. Coupled with its young, dynamic, and increasingly skilled workforce, this strengthens the country's competitiveness as a prime manufacturing destination.

One of Vietnam's standout strengths is its excellent integration into the global network of free trade agreements (FTAs). This strategic positioning makes Vietnam an ideal location for production, allowing companies to efficiently export to key markets, including China, Australia and New Zealand (ANZ), ASEAN nations, and the United States.

In summary, Vietnam's combination of a strong economic outlook, political stability, open investment climate, robust infrastructure, and advantageous trade agreements positions it as a top destination for manufacturing in Asia.

The AMI is also a core component of Dezan Shira & Associates’ APAC manufacturing market research work, created to help investors navigate the region more efficiently.

According to AMI 2026, China remains the number one ranked manufacturing country for the third consecutive year. The most significant shift in this edition is Malaysia’s rise to second place, its first time entering the top two. Singapore climbs into fourth place, Thailand rises from tenth to eighth, and Japan, the Philippines, and South Korea each adjust modestly. India remains stable at sixth and Indonesia remains stable at seventh. Bangladesh remains in eleventh place.

Source: vneconomy.vn