(Hanoi, 28th) In 2025, Vietnam’s industrial production is seeing a strong recovery, not only consolidating its pillar role in GDP growth but also driving steady growth in trade, consumption, and exports, thus laying a solid foundation for sustainable economic growth.
Industrial Sustained High Growth Consolidates Economic Support Role
Since the start of 2025, industrial production has maintained its growth momentum, continuing to play the "locomotive" role in driving trade, consumption, and export growth, injecting momentum into the achievement of sustainable development goals.
Since the start of 2025, industrial production has maintained its growth momentum, continuing to play the "locomotive" role in driving trade, consumption, and export growth, injecting momentum into the achievement of sustainable development goals.
According to data from the Ministry of Industry and Trade’s Q2 2025 press release, this year’s industrial production index (IIP) is expected to increase by 8.8% year-on-year, significantly exceeding expectations, showing that Vietnam's economy has clearly emerged from the slowdown in 2023 which was impacted by global order declines, high costs, and geopolitical instability.
Among these, the manufacturing and processing sector continues to be the main driver of industrial growth, with a year-on-year increase of 10.8%. As the largest contributor in the GDP structure, the manufacturing sector not only creates high added value, but also absorbs a large labor force and contributes prominently to exports.
Ms. Mei Qiuxian, Deputy Director of Planning and Finance Department at the Ministry of Industry and Trade, said that the current recovery benefits from persistent efforts by enterprises and flexible, effective macro-control policies from the government. She pointed out that the 8.8% growth rate not only reflects the rebound in production activity but also demonstrates Vietnam’s adaptability in the face of global economic fluctuations, proving that industry remains an important pillar for GDP growth in 2025.
From a sub-sector perspective, the automobile manufacturing industry grew by 34.3%, leather and related products by 16.8%, rubber and plastic products by 16.1%, garment manufacturing by 15.7%, and food processing by 8.8%. Output of major industrial products rose simultaneously: automobile output surged 70.3%, TV sets increased by 25.6%, leather shoes rose 11.5%, and steel output increased by 13.8%.
Moreover, industrial growth is no longer limited to traditional industrial centers like Ho Chi Minh City, Binh Duong Province, and Bac Ninh Province, but is expanding to more provinces. Phu Tho Province's industrial production index rose 46.7%, Nam Dinh by 29.6%, Bac Giang by 28.1%, Bac Kan by 23.6%, and Ha Nam by 22.5%. This change reflects the effectiveness of policies attracting investment in processing and manufacturing, and also demonstrates positive results in administrative reform, infrastructure improvement, and workforce enhancement across regions.
The regional expansion of industry helps achieve balanced regional development, relieves pressure on big cities, and promotes overall economic and social progress.
Policy Support Boosts Enterprises’ Endogenous Power
The robust recovery in the industrial sector is inseparable from a series of pragmatic government policies. Production support programs, trade promotion, lower lending rates, simplification of administrative procedures, and the acceleration of public investment have all effectively improved the business environment, helping enterprises smoothly weather difficult periods.
The robust recovery in the industrial sector is inseparable from a series of pragmatic government policies. Production support programs, trade promotion, lower lending rates, simplification of administrative procedures, and the acceleration of public investment have all effectively improved the business environment, helping enterprises smoothly weather difficult periods.
Especially under persistently high production and logistics costs, companies have been able to reduce costs and enhance competitiveness by unblocking credit flows and improving logistics and transportation. At the same time, many enterprises are accelerating their green and digital transformation, adopting automation technology, artificial intelligence, and intelligent supply chain management. This not only improves production efficiency and reduces reliance on imported raw materials, but also effectively leverages new-generation free trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to create additional export opportunities.
The industrial rebound has also produced a positive spillover effect on other areas. In the first five months of this year, Vietnam’s total import and export volume reached US$355.79 billion, up 15.7% year-on-year, with exports up 15.7%; exports of processed industrial products accounted for nearly 85% of the total import and export value. In the same period, total retail sales and consumer service revenue rose by 7.9%, indicating steady recovery in domestic demand, injecting momentum into continued industrial production growth, and forming a virtuous cycle of production, consumption and export.
Continuously Strengthening Efforts to Promote Sustainable Development Amid Challenges
Despite remarkable achievements, Vietnam’s industry still faces many challenges. Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan pointed out that global economic uncertainties persist: US tariff increases, EU technical and environmental standards and workforce requirements, as well as raw material price fluctuations caused by the Russia-Ukraine and Middle East conflicts, could all impact global supply chains and affect the stability of Vietnam’s import-dependent manufacturing sector.
Despite remarkable achievements, Vietnam’s industry still faces many challenges. Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan pointed out that global economic uncertainties persist: US tariff increases, EU technical and environmental standards and workforce requirements, as well as raw material price fluctuations caused by the Russia-Ukraine and Middle East conflicts, could all impact global supply chains and affect the stability of Vietnam’s import-dependent manufacturing sector.
He emphasized that, in response to these challenges, Vietnam is actively leveraging the advantages of new-generation free trade agreements and implementing Resolutions 57, 59, 66 and 68 on industrial development, institutional innovation, scientific and technological advances, and private enterprise capacity improvement. At the same time, the Ministry of Industry and Trade is working with localities to promote the construction of eco-industrial parks and encourage companies to increase investment in renewable energy and clean technology.
Experts believe that developing eco-industrial parks will not only help companies meet international standards and improve long-term added value, but will also strengthen the competitiveness of Vietnamese industry in the international market.
Sustained Industrial Growth to Become a "Springboard" for Economic Breakthrough
Given the current growth momentum, Vietnam is fully confident in achieving its GDP growth target of 8% for 2025. The robust industrial recovery, coupled with simultaneous rises in exports and domestic market demand, will become an important "springboard" for Vietnam to overcome challenges, deeply integrate into the international economic process, and promote sustainable economic development.
Given the current growth momentum, Vietnam is fully confident in achieving its GDP growth target of 8% for 2025. The robust industrial recovery, coupled with simultaneous rises in exports and domestic market demand, will become an important "springboard" for Vietnam to overcome challenges, deeply integrate into the international economic process, and promote sustainable economic development.
As a pillar industry, industry not only brings economic benefits, but also actively contributes to shaping a sustainable future for Vietnam.