Vapi's strategic location has been a source of strength - on the Mumbai - Ahmedabad Highway, very close to the sea resorts of Daman and the hilly forest reserves of Silvassa. It is also enjoys proximity to the trading centers of Surat and Baroda. Vapi has good road and rail connectivity and good schools, hospitals, banks, and commercial complexes.

The development of the Vapi Industrial Estate was started by GIDC in . Spread over 11.4 km² it is home to over 1500 industries. The township hosts chemical plants including Chemical Distillation, Pesticides, Dyes, Dyes intermediaries and Paints. Other major industries include Paper, Packaging, Pharmaceuticals, Plastics, Rubber, Textiles, Woods, Glass, and Food products. The region has also several large-scale units including Reliance Industries, Hindustan Lever, Sterlite Industries, Wel Spun Textiles, Alok Industries, Micro Inks, United Phosphorus Limited, Themis Medicare, Richter Themis.

Liberal Government policy and the tax benefits that Silvassa and Daman enjoy has greatly helped Vapi and surrounding areas in attaining impressive industrial growth. The township represents an investment of Rs 2000 crores and exports goods worth Rs 200 crores. Vapi together with Daman, Sarigam and Silvassa form the largest cluster of SMEs in Asia.

Further with the proposed development of the Umergaon port, the growth in this region will be accelerated.