In 2026, Chinese products will face new opportunities and challenges in exploring the Vietnamese market.
The demand in the Vietnamese market is stratified and diverse, and different segments have their own characteristics.
First, let’s look at tools (manual, electric, pneumatic tools), whose demand driving force comes from daily production consumption and maintenance.
As the number of factories in Vietnam surges, the demand for basic tools is steady and huge.
The products in this market are highly versatile and mature. Chinese products dominate due to their high cost performance. At the same time, this is also a key area for production capacity transfer. Many Chinese tool companies have set up factories in Vietnam.
The demand for welding and cutting equipment benefits from the development of metal processing, automobile manufacturing, and shipbuilding industries.
Vietnam’s automobile and motorcycle industry has a high localization rate and continuous demand for related equipment.
This type of market is strongly related to technical processes and has high requirements for equipment performance and stability. It is usually purchased as part of an industrial production line.
Fluid equipment such as pumps, valves, and air compressors are in demand due to factory construction and production lines.
Almost all manufacturing plants and engineering projects require such general equipment. As industrial basic parts, it has a wide range of demands. Among them, energy-saving, efficient and durable products are more popular.
The demand for transmission parts, bearings, and motors comes from equipment manufacturing and maintenance.
Due to the weak local supporting industries in Vietnam, for example, the localization rate of auto parts is only 5% – 20%, and a large number of basic transmission components need to be imported.
This is a typical “supporting industry” product with a large but fragmented market and high requirements for product quality and supply stability.
The demand for industrial automation equipment (such as robots and CNC machine tools) is growing day by day amid industrial upgrading and rising labor costs.
The Vietnamese government encourages automation, and the import volume of related equipment has increased significantly annually. For example, the import volume of industrial robots has increased by approximately 20% annually.
This type of market represents the future growth direction, with higher technical thresholds and higher profits. Customers not only purchase equipment, but also need complete automation solutions.
However, entering the Vietnamese market is not smooth sailing and will face a complex competition landscape and compliance requirements.
There are diversified competitors in the market. Chinese brands occupy the mainstream of the mid-to-low-end market due to their high cost performance. Vietnamese local companies have certain advantages in motorcycle accessories and other fields but their overall strength is weak. Japanese, Korean, European and American brands occupy the high-end market, with leading brands and technologies.
In terms of tariffs and trade, although RCEP and other agreements have reduced tariffs, Vietnam has a wide range of tariff rates (0% – 150%) and needs to be accurately classified. Special attention must be paid to the rules of origin to avoid being identified as “transshipment” and facing punitive tariffs.
In terms of technical standards and certification, many products need to comply with Vietnam’s national standards (TCVN) or national technical regulations (QCVN), and some electrical appliances also need CR mark certification. Compliance is a hard threshold for entering the market.
Based on the above analysis, in order to succeed in the Vietnamese market, we can adopt the following strategies.
The first is to localize products and pricing, provide product lines of different grades, open the market with cost-effective products, and reserve mid-to-high-end products to meet upgrade needs. Based on the capital characteristics of Vietnamese small and medium-sized enterprises, flexible installment payment or leasing plans can be considered.
The second is to establish in-depth localization services, set up local service centers and spare parts warehouses, provide quick-response maintenance services, and provide Vietnamese operation and maintenance training materials and technical support to solve customers’ worries.
The third is to make good use of cooperation and exhibition channels, cooperate with powerful local Vietnamese dealers or engineering companies, use their existing channels and customer networks, and actively participate in professional exhibitions such as the Hanoi International Hardware and Tools Exhibition (HMET EXPO). This is one of the most effective ways to contact real buyers and understand the forefront of the market.
The fourth is to pay attention to opportunities for industrial chain transfer, pay attention to the equipment procurement needs of Chinese-funded and international companies investing and building factories in Vietnam, directly connect with their Vietnamese branches, and evaluate the possibility of setting up factories (CKD assembly) in Vietnam to better serve customers and avoid trade risks.
