In the context in which the supporting industry is identified as a critical link for increasing localization rates and deeper integration into the global value chain (GVC) of the electronics sector, this study focuses on analyzing the factors affecting the level of participation of Vietnamese small and medium-sized enterprises (SMEs) in the electronics supporting industry. Based on a review of the theoretical foundations of global value chains (GVC), the resource-based view (RBV), and dynamic capabilities, the proposed research model comprises seven constructs: (1) Attractiveness of the electronics supporting industry (HDN), (2) Incentive policies (CSH), (3) SME capabilities (NLD), (4) SME strategies (CLD), (5) Barriers to participation (RCH), (6) Participation risks (RRH), and (7) Level of participation in the electronics supporting industry (TGH). Data were collected from a survey of 450 SMEs using a questionnaire with a 5-point Likert scale; the measurement scales were tested using Cronbach’s Alpha, exploratory factor analysis (EFA), Pearson correlation, and multiple linear regression. The results indicate that all seven scales exhibit very high reliability (Cronbach’s Alpha > 0.90) and that the factor structure fits well with the theoretical model. The regression model explains approximately 55.3% of the variance in TGH. Specifically, SME capabilities (NLD) and incentive policies (CSH) have strong and statistically significant positive effects on the level of participation in the supporting industry; barriers (RCH) and risks (RRH) have significant negative effects; while industry attractiveness (HDN) and SME strategy (CLD) show positive but weaker effects when considered simultaneously with the other variables. Accordingly, the study emphasizes the central role of upgrading internal firm capabilities, improving supportive policies, and reducing barriers and risks in the process of participating in the electronics supporting industry. The findings contribute empirical evidence to the literature on SME participation in GVCs in developing economies and provide several policy implications for Vietnam