Growth target of over 20 percent
As one of the leading names in precision mold engineering, Lap Phuc Company in Ho Chi Minh City’s Phu Thuan Ward has set an ambitious target of 20 percent to 30 percent growth in 2026 compared to 2025. Having invested heavily in technology and continuously upgraded the skills of its engineers and technicians, Lap Phuc’s mold products now compete effectively in both quality and price with regional imports.
Nguyen Van Tri, General Director of Lap Phuc Company, revealed that the company’s U.S. clients have shown a strong preference for its products, and the order volume for 2026 is looking stable.
Similarly, Cat Van Loi Industrial Electrical Equipment JSC has set a 23 percent growth target. According to Le Mai Huu Lam, the company’s General Director, the strategy focuses on strengthening internal capacity and emphasizing human resources as the core factor. The company also plans to obtain additional international certifications to qualify for large-scale domestic and overseas projects while expanding trade promotion to bring Vietnamese products to global markets.
With efforts to standardize production in line with international benchmarks, Cat Van Loi’s electromechanical materials have been supplied to major domestic projects such as Metro Line No. 1 (Ben Thanh – Suoi Tien), Long Thanh International Airport, Van Phong 1 Thermal Power Plant, and the National Data Center. Internationally, their products have been used in the Metro Manila line in the Philippines, Techo Airport in Cambodia, and Matarbari Coal Power Plant in Bangladesh.
In 2026, the mechanical engineering sector will also benefit from the establishment of a dedicated industrial park. According to Huynh Quang Nhung, Deputy General Director of Thaco Industries, the project in Binh Co and Tan Uyen Wards of Ho Chi Minh City covers an area of 786 hectares with an expected investment of over VND75 trillion. “Thaco plans to establish a joint venture and cooperation center within the park to encourage businesses to participate in the mechanical production chain through diverse partnership models,” Deputy General Director Huynh Quang Nhung said.
A recent survey of industrial enterprises in Ho Chi Minh City shows strong confidence in the production outlook for the first quarter of 2026. Specifically, 32.8 percent of businesses expect conditions to improve, while 73.5 percent of state-owned enterprises believe their business performance will be more positive during this period.
Opportunities to participate in large domestic projects are created
Although many Vietnamese industrial engineering firms already meet European and Japanese standards and supply to foreign partners, they still face barriers to entering large-scale domestic projects. Tran Thanh Trong, Vice Chairman of the Ho Chi Minh City Electrical and Mechanical Enterprises Association, emphasized that local firms are fully capable of handling installation and auxiliary systems for urban railway projects including power supply, backup generators, ventilation, peripheral automation, fire prevention systems, and elevators.
However, General Director of Lap Phuc Company Nguyen Van Tri noted that access to financing remains a major challenge, adding that enterprises need substantial capital to expand, but lending rates are still high. While Ho Chi Minh City has introduced an investment stimulus loan program, not all businesses qualify.
In addition, high industrial land lease costs hinder competitiveness. For example, rental prices in Cu Chi Industrial Park have reached approximately US$250 per square meter for a 50-year term, significantly raising operational expenses and reducing the competitiveness of manufacturing firms.
