SMC Manufacturing Vietnam, a subsidiary of Japanese pneumatic instrument producer SMC, is investing an additional $330 million in Dong Nai province, increasing its total investment in Vietnam to nearly $1 billion. This makes SMC one of the largest Japanese investors in the region.

The investment, focused on automotive manufacturing and assembly at Long Duc Industrial Park, was the largest among 14 projects granted investment certificates by Dong Nai authorities on February 7.

Strategic Shift to Vietnam

SMC’s expansion aligns with its global production strategy. In May 2024, SMC President Yoshiki Takada announced plans to shift mass production to Vietnam while keeping Chinese factories focused on the local market. The move aims to mitigate geopolitical risks and address rising labor costs in China.

Other Major Foreign Investments in Dong Nai

Several international companies also secured investment approvals at the event:

• Singapore’s Saffron Logistics Asset Holdings PTE.LTD – $101 million for Mapletree Logistics Park Tam An 1 (industrial real estate)
• Cayman Island-based Quest Composite Technology Vietnam – $40 million for bicycle components
• Thailand’s Mega Lifesciences Vietnam – $28 million for pharmaceuticals, healthcare items, and cosmetics
• Taiwan’s Atai Fuji Electric – $24 million for cooling pumps
• Singapore’s Leader Electric Appliance – $10 million for household electricals
• South Korea’s Hyosung – $19.7 million additional investment, raising its total in Dong Nai to $976.3 million
• Japan’s Olympus Vietnam – $53 million additional investment, increasing its total to $163 million

• Japan’s Murata Manufacturing – $25 million additional investment, bringing its total to $41 million

   

Vietnam’s FDI Momentum Continues

Vietnam’s FDI inflows remained strong in early 2025, with $4.33 billion registered in January (up 48.6% year-on-year). Disbursed FDI capital reached $1.51 billion (up 2%).

The top investment destinations were:

• Bac Ninh – $1.39 billion (32.2% of total FDI, a six-fold increase)
• Dong Nai – $959 million (3.4-fold increase)
• Hanoi – $716.4 million (up 1.9%)

With major players like SMC, Olympus, and Murata Manufacturing increasing their presence, Vietnam continues to solidify its position as a key destination for high-tech and industrial investments.