In Bac Ninh Province in northern Vietnam, domestic companies are upgrading their capabilities as foreign investment expands, charting a path toward entry into global value chains. Cases such as Alpha Vina and Automech highlight the growing importance of strengthening technical and design capabilities.
Bac Ninh Province has attracted approximately $52 billion in investment from 47 countries and regions, contributing to the establishment of local brands on the global industrial map. This has positioned the region as part of a large-scale FDI ecosystem, while raising questions about the independence of domestic companies.
To upgrade domestic companies, a shift from extensive to intensive development and efforts to retain value added within the region are considered essential, while companies are required to meet the stringent technical standards of supply chains. Alpha Vina and Automech are improving their technical and design capabilities in the machinery and automation fields while building systems to supply production-line equipment jointly with foreign companies.
Alpha Vina is expanding the design and manufacture of jigs and automation machinery, partnering with approximately 20 companies in China, South Korea, Japan and Taiwan. It has indicated plans to establish a new company in cooperation with Japan's 大鵬グループ in December 2025. Automech has installed 2 factories in the Dinh Tram Industrial Park and is pursuing initiatives aimed at becoming a smart factory.
All 3 companies share the recognition that improving not only their workforce but also their technical expertise, design capabilities and process proficiency, and strengthening their ability to meet global standards, are key to improving their position in supply chains. Domestic market share remains small, and continued investment is essential to advance into higher-value-added processes.