Report Overview

Increasing adoption of cloud-based solutions, a spurring demand for automation and digitization, government initiatives to promote Industry 4.0, and the increasing need for enhanced operational efficiency are propelling the growth of Vietnam Discrete Manufacturing ERP Market during the forecast period between 2023 and 2029.

Vietnam Discrete Manufacturing ERP Market – Trends & Forecast Report, 2029

Vietnam discrete manufacturing ERP market size was estimated at USD 133.8 million in 2022. During the forecast period between 2023 and 2029, Vietnam discrete manufacturing ERP market size to grow at a CAGR of 14.50% reaching a value of USD 342.79 million by 2029. Vietnam discrete manufacturing ERP market is driven by several factors, such as increasing demand for automation, the need for real-time visibility across operations, and the adoption of Industry 4.0 technologies. Major players in the market include SAP, Oracle, and Microsoft, among others. The market is expected to grow during the forecast period due to increasing digitalization efforts in the country.

Vietnam Discrete Manufacturing ERP Market - Overview

Vietnam discrete manufacturing ERP (Enterprise Resource Planning) market refers to the sector in Vietnam's economy that produces separate and distinct products, such as electronics, automobiles, machinery, and software solutions that assist in managing their operations. ERP software is designed to help manufacturers with various functions, including inventory management, supply chain management, production planning, and scheduling, among others. This market includes both local and international vendors that offer ERP solutions tailored to the specific needs of discrete manufacturers operating in Vietnam. The Vietnam discrete manufacturing ERP market is expected to grow in the coming years, driven by the country's rapidly developing manufacturing industry.

Growth Drivers

Strong Economic Growth and Increasing Demand for Efficient Operations

Vietnam's economy has been experiencing robust growth in recent years, with an average growth rate of 6–7% annually. This growth has been fueled by the country's strong manufacturing industry, which accounts for a sizable portion of the country's GDP. To stay competitive and meet the increasing demand for quality products, discrete manufacturers in Vietnam are turning to Enterprise Resource Planning (ERP) software solutions to streamline their operations and increase efficiency. The Vietnam discrete manufacturing ERP market is expected to see significant growth as a result, with more companies are increasingly adopting these solutions to gain a competitive edge in the market.

Restraints

Limited Adoption of Technology

The growth of Vietnam discrete manufacturing ERP market may be affected, due to the limited adoption of technology by manufacturers in the country. Despite the benefits that enterprise resource planning (ERP) systems can bring to businesses, such as increased efficiency and cost savings, many manufacturers in Vietnam are still using manual processes or legacy systems. The high cost of implementing ERP solutions, along with the lack of skilled professionals to operate and maintain them, also poses a challenge for smaller manufacturers. Thus, the growth of the Vietnam discrete manufacturing ERP market is being hindered by the slow adoption of technology by manufacturers.

Impact of COVID-19 on the Vietnam Discrete Manufacturing ERP Market

The COVID-19 pandemic adversely affected the Vietnam discrete manufacturing ERP market. The country's strict lockdown measures and supply chain disruptions have forced many manufacturers to delay or cancel their ERP implementation plans. However, as the economy recovers and businesses adapt to the new normal, the demand for ERP solutions is expected to increase. This is driven by the need for improved operational efficiency and cost savings. Cloud-based ERP solutions are likely to be in high demand, as they offer flexibility and scalability, allowing businesses to adapt to changing market conditions. Overall, the Vietnam discrete manufacturing ERP market is expected to rebound in the post-pandemic era.

Vietnam Discrete Manufacturing ERP Market

Segmental Coverage

Vietnam Discrete Manufacturing ERP Market - By Deployment Mode

On the basis of deployment mode, Vietnam discrete manufacturing ERP market is divided into Cloud and On-premises segments. The Cloud segment refers to ERP software solutions that are hosted and managed in a remote server or data center and accessed through the Internet. On-premises, on the other hand, refers to ERP software solutions that are installed and run on a local server or computer network within the company's premises.

The Cloud segment is growing in popularity due to its cost-effectiveness, flexibility, and scalability, while the On-premises segment is still preferred by companies with specific security and customization requirements. Both segments offer different advantages and disadvantages, and the choice between them ultimately depends on the company's needs and preferences.

Vietnam Discrete Manufacturing ERP Market – By Function

On the basis of function, Vietnam discrete manufacturing ERP market is divided into Finance, Human Resource, Supply Chain, and Production segments. The supply chain segment dominates the market, as it enables businesses to optimize their supply chain operations and reduce costs. This is especially crucial for Vietnam's manufacturing industry, which heavily relies on imported raw materials and components. The production segment also plays a significant role, as it allows businesses to streamline their manufacturing processes and improve efficiency. However, finance and human resource segments are equally important, as they help businesses manage their finances and human resources effectively. Overall, a well-integrated ERP solution can help Vietnamese manufacturers stay competitive in the global market.

Vietnam Discrete Manufacturing ERP Market – By Industry Vertical

By industry vertical, Vietnam discrete manufacturing ERP market is divided into Aerospace & Defense, Automotive, Electronics & Semiconductor, Industrial Machinery, and Medical Devices segments. The electronics & semiconductor is currently the leading segment in the Vietnam discrete manufacturing ERP market by industry vertical. This is due to the country's fast-expanding electronics industry, which is fueled by factors such as low labor costs, favorable government regulations, and an increasingly competitive workforce. The electronics & semiconductor sector is expected to grow at a steady rate, fueled by rising demand for electronic devices and components. Other industries, such as automotive and medical devices, are exhibiting great growth potential and will increase demand for ERP solutions during the forecast period.

Competitive Landscape

Major players in Vietnam discrete manufacturing ERP market include SAP Vietnam, Infor Vietnam, Oracle Vietnam, Epicor Software Corporation, Sage Software Asia Pte Ltd, QAD Inc., IFS AB, Aptean, Exact Software, and Plex Systems, Inc. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In August 2021 - SAP Vietnam formed a partnership with FPT Information System (FPT IS), a leading provider of digital transformation and IT services in Vietnam, to provide SAP's cloud-based ERP solutions to Vietnamese enterprises, particularly those in the manufacturing and retail sectors.

• In March 2021 - CIO Advisor APAC recognized IFS, a global enterprise software provider, as one of the top 10 ERP solution providers in the APAC region, including Vietnam. IFS has been expanding its presence in Vietnam, particularly in the manufacturing and industrial sectors.

Scope of the Report

By Deployment Mode

• Cloud

• On-premises

By Function

• Finance

• Human Resource

• Supply Chain

• Production

• Others

Industry Vertical

• Aerospace & Defense

• Automotive

• Electronics & Semiconductor

• Industrial Machinery

• Medical Devices

• Others