Essentra Components, a UK-backed manufacturer and distributor of industrial components, on October 11 revealed its intentions to deepen its foothold in Vietnam's market.

This move is seen as part of a broader trend of global supply chain shifts, where major conglomerates worldwide are selecting Vietnam as a pivotal point for investment and manufacturing. Currently, the company partners with more than 82,000 clients globally.

According to the firm, Vietnam's geographical advantage and its possession of 17 free trade agreements (FTAs) with countries in Europe and the Americas have positioned it as a strategic destination within the global supply chain, especially in the industrial components manufacturing sector. The scale of this sector in Vietnam is forecasted to rise by 6.6 per cent in 2023.

Leading conglomerates such as Apple and LEGO have already begun constructing their primary manufacturing facilities in Vietnam, investing values that reach into the billions of USD.

Following suit, Essentra Components is also navigating its strategies to penetrate this promising market even more profoundly.

"Essentra Components is a global market leader in plastic injection moulded, vinyl dip moulded and metal components. We have a history of over 65 years, producing essential components across a huge range of industries and applications. Making it easier for our customers is our top priority. That's why we operate internationally in 29 countries across 4 continents. With every order, we offer a hassle-free experience through our 14 manufacturing facilities, 34 distribution centres and 40 sales and service locations," the company said.

It's worth noting that Essentra Components isn't entirely new to the Vietnamese landscape. In reality, they marked their presence as early as 2022, pinpointing Vietnam as a strategic destination in their supply chain.

Elucidating this strategic move, Scott Fawcett, CEO of Essentra Components said,“Increasingly, manufacturers are investing in new markets with the hope of diversifying their supply sources and reducing reliance on a singular market."

"They have a pressing need for supply partners offering products and services that match their global standards. Our foray into the Vietnamese market is a solution to this very challenge, ensuring the quality of service in line with the needs and aspirations of our clients.”