Vietnam

VIETNAM

Vietnam is rapidly emerging as a key global hub for toy manufacturing, driven by its competitive labor costs, strong trade agreements, and growing industrial capabilities. As global supply chains shift, the country presents a viable alternative to China, attracting major toy brands such as LEGO, Mattel, and Hasbro. With licensed toys, STEM-based products, and sustainable manufacturing leading global trends, Vietnam is well-positioned to capitalize on these opportunities. However, to fully realize its potential, targeted policy support and infrastructure investments are needed to strengthen its toy manufacturing ecosystem, workforce, and export competitiveness.

Highlights:

• Global Market Growth: The toy industry continues to expand, with Asia Pacific generating USD 28.9 billion in 2023, and expected to grow further, driven by kidult demand, collectibles, and sustainability trends.

• Vietnam’s Competitive Edge: The country offers cost-effective production, proximity to ASEAN markets, and strong free trade agreements (FTAs), making it attractive for international toy brands.

• Localization & Supply Chain Strengthening: While Vietnam has localized plastics, packaging, and basic electronics, tooling, advanced components, and testing infrastructure remain challenges.

• Workforce Development: Vietnam must invest in vocational training, automation skills, and toy-specific engineering programs to meet increasing labor demands.

• Sustainable & High-Tech Manufacturing: Growing focus on renewable energy, eco-friendly materials, and compliance with global safety standards enhances Vietnam’s appeal to ESG-conscious investors.

Toy safety is regulated and monitored by the Directorate for Standards, Metrology and Quality (Ministry of Science and Technology). Violation in terms of conformity to national technical regulation or product labelling is handled according to general administrative sanctioning measures.