To accelerate the implementation of Resolution No. 57-NQ/TW, the requirement for the mechanical engineering manufacturing industry is not limited to processing and manufacturing individual parts but must gradually master design, system integration, project management, and general contracting in priority areas.

The "Problem" of Mechanisms and Enterprise Internal Strength

According to data from the General Statistics Office and the Ministry of Industry and Trade, the production scale of the entire mechanical engineering industry grew rapidly in the 2018-2025 period. The total mechanical engineering production value increased from approximately 1,626.3 thousand billion VND in 2018 to about 3,225.5 thousand billion VND in 2025, nearly doubling; the average growth rate is estimated at about 10.3%/year. Exports of machinery, equipment, tools, and spare parts rose from 384.7 thousand billion VND in 2018 to 1,557.7 thousand billion VND in 2025…

These figures show that Vietnam's mechanical engineering industry has grown substantially both in production and international trade participation. However, the development foundation is not yet truly solid, as the FDI sector still dominates, accounting for about 92-93% of export value and about 75% of import value in recent years.

A review of the implementation of Decision No. 319/QD-TTg on the Vietnam Mechanical Engineering Industry Development Strategy shows that the most prominent result is the expanded production scale, with some sub-sectors experiencing development and rapid export growth, with export value in 2025 approximately 4 times that of 2018.

However, the in-depth results remain limited. The capacity to master core technology, form strong consulting-manufacturing complexes, and enhance the role of domestic enterprises in key projects has not yet created clear changes. Development among sub-sectors lacks uniformity; many high-tech fields still depend on imports, with low localization rates. Export growth is still mainly driven by the FDI sector, indicating that the internal strength and position of Vietnamese mechanical engineering enterprises in the global value chain remain limited.

The causes of this situation stem from mechanisms and enterprise internal strength. The system of implementation mechanisms and support resources is not yet sufficiently synchronized or strong enough to bring the strategy's objectives into reality. Additionally, the mechanical engineering industry lacks a stable domestic market and lacks long-term orders from national projects for enterprises to accumulate experience and gradually master core technology.

The internal strength of most domestic enterprises remains weak, with small scale and limited financial capacity; many enterprises, even when the market is favorable, still choose imports instead of persistently investing in self-reliance. The role of "leading" enterprises has also not met expectations, especially in driving and supporting the system of domestic satellite enterprises.

Implementation practice shows that a correct strategy is only a necessary condition. To achieve results, there must be a specific action program with clear responsibilities, resources, and timelines for each priority area.

An important lesson is to link enterprise capacity building with exploiting the domestic market. National key projects should be considered as "large orders" and also as a challenging environment for domestic mechanical engineering enterprises to participate deeper in the value chain, thereby accumulating experience, expanding scale, and moving toward technological mastery.

Seizing the Market, Breaking the "Vicious Cycle"

The market size for mechanical engineering in the 2026-2045 period is forecast to reach about 21,699.6 thousand billion VND. Thus, the domestic market is large enough to create new momentum for the mechanical engineering industry, but the right focus must be chosen. Priority areas should include railways, energy, power grids, mining and mineral processing, shipbuilding, automobiles and motorcycles, electrical equipment, agricultural machinery, synchronous equipment, and post-investment technical services. These are sectors that not only have large market scales but also have the potential to spread to supporting industries and form core mechanical engineering enterprises.

In other words, the opportunity for Vietnam's mechanical engineering lies right in the domestic market. The key issue is to turn investment demand into specific orders, specific technology transfer tasks, and specific localization requirements for Vietnamese enterprises. Without clear implementation mechanisms, the majority of equipment value in large projects will still belong to foreign contractors and suppliers.

Therefore, issuing specific mechanisms and policies for the mechanical engineering industry in the 2026-2045 period is an urgent requirement. The goal is to break the vicious cycle of "weak capacity due to lack of opportunity, lack of opportunity due to weak capacity," gradually helping Vietnamese enterprises escape the situation of being subcontractors in their own home market.

In the spirit of Resolution No. 29-NQ/TW on accelerating industrialization and the Mechanical Engineering Industry Development Strategy, sufficiently strong policies are needed to turn the country's large projects into actual orders for domestic enterprises, instead of letting most of the value fall into foreign contractors' hands. Only with breakthrough mechanisms will enterprises have the incentive to invest in critical stages such as design, system integration, testing, certification, and project management, thereby creating a foundation for a more self-reliant mechanical engineering industry.

Mechanisms and policies to create breakthroughs in the coming period should focus on areas with large market capacity, high spillover effects, and the ability to elevate Vietnamese enterprises to stages of design, system integration, project management, and equipment manufacturing. Support must be conditional, time-bound, with quantifiable criteria, and tied to output results. It should not be spread across the entire industry but should concentrate on key mechanical products, core enterprises, priority projects, and high value-added stages.

In the immediate term, the following specific tasks need to be addressed: Develop key mechanical products linked to the market and increase localization rates of equipment; enhance design, research, technology transfer, and mastery capabilities; develop core mechanical enterprises and improve production capacity; develop human resources for the mechanical industry.

Especially, in the context where sectors and fields are accelerating the implementation of the Politburo's Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation, and national digital transformation, policies need to create conditions to gradually elevate Vietnamese mechanical enterprises from mainly processing and manufacturing individual parts to mastering engineering design, overall design, system integration, project management, and general contracting in priority areas such as railways, offshore wind power, gas power, mining and mineral processing, and shipbuilding. By 2035, at least one national railway testing center should be established to serve independent simulation, testing, and certification.

In the 2026-2035 period, priority should be given to selecting at least one national science and technology program for each important product group such as railway equipment, offshore wind power, mining and mineral processing, and shipbuilding; concurrently, by 2030, within each priority product group, at least one national or ministerial-level research, design, and testing program should be established, linked to core enterprises and specific output products.

The 2026-2045 period opens up a huge market for Vietnam's mechanical engineering, especially in the fields of energy, railways, transportation, mining, processing and manufacturing industry, shipbuilding, agriculture, and logistics. This is an important opportunity to enhance the capacity of domestic mechanical enterprises. However, opportunities will only turn into substantial results if there is the right strategy, sufficiently strong mechanisms, and effective implementation organization.

Dr. Phan Dang Phong

Director of the National Research Institute of Mechanical Engineering

Source: Industry and Trade Newspaper