How AI Is Used In Manufacturing In Vietnam (2025)

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Vietnam has spent the last decade becoming a core node in global electronics, apparel, and automotive supply chains. The policy direction is now clear: move from low-cost assembly toward high-productivity, tech-intensive manufacturing, and AI is central to that shift. Manufacturing already accounts for more than a fifth of GDP, and productivity is the country’s next growth lever.

The policy scaffolding: Strategy first, factory second

Two national programs underpin adoption. First, the National Strategy on AI (Decision 127/QĐ-TTg, Jan 26, 2021) aims to make Vietnam an ASEAN AI hub by 2030, prioritizing R&D and large-scale application. Second, the National Digital Transformation Program (Decision 749/QĐ-TTg, 2020) explicitly targets smart factories, smart operations, smart products/data services, and digital skills for workers. Together they create a clear mandate (and permission structure) for manufacturers to invest.

Most common AI use cases on the floor

1) Automated visual inspection (AVI) and in-line quality control.

Computer vision models now sit over high-speed lines, flagging defects that human eyes (or older rules-based vision) miss. These systems leverage deep learning, high-resolution cameras, and increasingly “no-code” model retraining so engineers on site can adapt to new SKUs. Google’s Visual Inspection AI is one reference approach in the region; local integrators report the same pattern: fewer false negatives, faster ramp-ups, and less scrap/rework.

2) Predictive maintenance and condition-based monitoring.

Sensors feed vibration/temperature/current data into models that forecast failures before they cascade into costly downtime, particularly valuable in electronics assembly, auto and components, and continuous processes like food & beverage. Vietnam’s automotive suppliers and OEMs are pushing hardest here as they standardize data pipelines and build equipment libraries.

3) Production orchestration via AI-enabled MES.

Beyond isolated use cases, the big unlock is shop-wide coherence: AI-assisted scheduling, bottleneck prediction, dynamic WIP balancing, and recipe parameter optimization. A local standout is FPT Software’s akaMES. FPT reports that akaMES helped VinFast’s battery line cut investment costs and boost efficiency within months, illustrating the ROI that’s now possible when data, MES, and equipment “talk.”

4) AI-assisted logistics and intralogistics.

From automated warehouses to AGVs/AMRs routing via AI, Vietnam’s large food & beverage and electronics sites are modernizing material flow. Recent dairy upgrades (e.g., refrigerated AS/RS) show how physical automation pairs with software to raise throughput and traceability.

Connectivity: why 5G private networks matter

Real-time AI thrives on low-latency data. That’s why the first Vietnamese smart factory to run on a 5G private mobile network (Pegatron, Hải Phòng) is a milestone: ultra-reliable, low-latency links enable mobile robots, dense vision systems, AR support, and digital twins without wiring constraints. The same vendor later showcased exporting Vietnam-made 5G PMN solutions abroad, evidence that connectivity and AI are becoming an exportable capability.

Case studies and signals from leading plants

VinFast (Hải Phòng & battery production). Uses advanced automation and AI-assisted systems from global platforms (e.g., Siemens) and local partners (e.g., FPT for akaMES), with highly automated lines from press shop to final assembly. SEC filings and vendor releases emphasize the level of automation, predictive maintenance, and digital engineering deployed.
Schaeffler (Biên Hòa). The plant has been built up as a digital pilot for the region, aligning with Industry 4.0 goals across connected equipment and data-driven processes, useful proof that Vietnam is hosting assembly but also higher-precision component manufacturing.
THACO (Chu Lai). Vietnam’s diversified industrial group is integrating SCADA, MES, and ERP to create a unified operating fabric across production, supply chain, and finance, while expanding R&D and upgrading bus/auto lines to “intelligent” production. This is a domestic champion showing how end-to-end digitalization (not just spot AI) compounds.
Samsung & Foxconn (North). While best known for scale, both are now vectors for AI intensity in Vietnam. Samsung is expanding display manufacturing and runs smart-factory upskilling programs for local suppliers; Foxconn’s push into AI servers signals equipment, process, and quality requirements that pull AI deeper into upstream Vietnamese sites.

The skilling engine behind the scenes

Two big levers are helping the long tail of Vietnamese manufacturers climb the curve:

Supplier development via “smart factory” projects. The Ministry of Industry & Trade and Samsung have trained dozens of local consultants and supported dozens of SMEs to implement smart-factory practices, creating local capacity to specify, deploy, and sustain AI/automation. Expect further regional rollouts (e.g., Đà Nẵng).
Talent pipelines via NIC partnerships. The National Innovation Center (NIC) and Samsung’s Innovation Campus are training students on AI/IoT foundations, complementing industry programs so that shop-floor tech has people to run it.

At the higher end, FPT’s $200M “AI factory” plan using NVIDIA platforms aims to increase local compute capacity and accelerate model development for sectors including manufacturing, reducing latency to train and deploy factory AI. It dovetails with broader AI cooperation frameworks being set up with NVIDIA in Vietnam.

What’s actually changing inside factories

Quality yields are stabilizing faster on new lines because AVI models retrain quickly as SKUs change, cutting ramp times and scrap. This is crucial in electronics, where defect rates spike with frequent revisions.
Maintenance is shifting from calendar-based to model-driven. Plants are capturing “failure signatures” to schedule service windows just in time, freeing spare parts capital and avoiding overtime downtime. Automotive/component makers have been early adopters.
Schedulers are getting help. AI-assisted MES smooths bottlenecks when supply or labor varies, improving on-time delivery without large capex, which is why platforms like akaMES have taken off among Vietnamese OEMs and tier-1 suppliers.
Wireless, high-bandwidth data is normalizing. 5G PMNs let teams push more vision and telemetry over the air, and pilot successes (e.g., Pegatron) are a template for other northern industrial zones.

Constraints to watch (and how firms are navigating them)

SME resourcing & skills. Many small and mid-size factories still face funding limits, data fragmentation, and capability gaps. Vietnam’s policy and ecosystem actors are urging a shift from “basic digital” to genuine AI transformation, but capital, skills, and infrastructure remain practical bottlenecks. The direction is right; the depth is still maturing.
Data readiness. Legacy equipment, inconsistent labeling, and siloed IT/OT slow down model deployment. This is why integrators emphasize data pipelines first, AI second, and why supplier programs emphasize diagnostic audits before automation.
Talent scale-up. NIC/Samsung, university partnerships, and vendor academies are expanding AI/semiconductor skills, but demand outpaces supply. Expect more co-ops and vendor-hosted labs inside industrial parks.

The near-term outlook

Three forces should accelerate AI penetration over the next 12–24 months:

A hardware supercycle landing in Vietnam. As Foxconn and others scale AI server output, local suppliers will be required to meet stricter quality/traceability, pushing AVI and predictive maintenance deeper into tiers 2–3.
State-backed programs that compound. The AI Strategy + Digital Transformation Program keep signalling policy support; 5G commercialization and export of Vietnam-made 5G systems widen the runway for low-latency factory AI.
Local platforms going global. When Vietnamese firms deploy MES/vision at home and export those solutions (or talent), it creates a feedback loop of standards, know-how, and financing that reduces risk for the next factory.

Takeaways for operators and investors

Start with data plumbing and quick-win QC. AVI is the fastest path to visible ROI in Vietnam’s mix of industries. Use pilots on one line, then roll out.
Layer in predictive maintenance as telemetry matures. Savings show up in uptime and labor reallocation, not just parts.
Adopt an MES that “speaks” to your equipment. The best results come when scheduling, quality, and maintenance models share one source.
Plan for 5G inside the plant. If you’re moving to mobile robots, dense cameras, or AR work instructions, a private network is not optional.

Vietnam is buying AI, and it’s building the stack needed for durable productivity gains: skills, connectivity, and platforms. The plants that treat AI as an operating system for the factory (not a bolt-on tool) are already pulling ahead.