Industrial investment in Northern Vietnam: A change in mindset is needed

This was emphasized by Mr. Hoang Quanh Phong, Vice Executive President of the Vietnam Chamber of Commerce and Industry (VCCI) at the Forum: “Industrial Investment Trends in Northern Vietnam—Opportunities and Challenges in 2026," organized by the Business Forum Magazine in coordination with the People's Committee of Hai Phong City on the afternoon of April 15th.

Speaking at the Forum, VCCI Vice President Hoang Quang Phong stated that in recent years, the manufacturing industry has continued to play a pivotal role in Vietnam's economy, both in terms of growth, exports, and investment attraction. By 2025, the Vietnam industrial sector is expected to contribute approximately 31.6% of GDP, with the processing and manufacturing sector alone accounting for 24.4% of GDP, affirming the central role of manufacturing in the national economic structure. This recovery trend is clearly reflected in the Industrial Production Index (IIP).

In 2025, the Industrial Production Index (IIP) is projected to increase by approximately 10.1% year-on-year; with the manufacturing sector growing by as much as 11.1%, demonstrating a strong expansion trend in high value-added production sectors. Manufacturing continues to be the most attractive destination for FDI.

In the first 11 months of 2025, total registered FDI reached US$33.69 billion, with the processing and manufacturing sector accounting for 82.9% of the total implemented capital. This clearly reflects Vietnam's position as a strategic manufacturing hub in the global supply chain, especially in the electronics, components, precision mechanics, and supporting industries.

“Based on the growth momentum of 2024–2025, 2026 is projected to continue to be a year of positive growth for the manufacturing sector, with an estimated IIP growth rate of 7–9%. Although the pace may slow down due to the larger scale of the manufacturing base, the main trend will be a shift from extensive to intensive growth,” Vice President Hoang Quang Phong shared.

At the same time, it was stated that Northern Vietnam is full of potential, and Hai Phong is considered an attractive destination that continuously attracts multinational corporations. Hai Phong City currently ranks among the top localities attracting the largest FDI in the country with 1,000 FDI projects from 40 countries and territories, with cumulative FDI capital reaching 33.8 billion USD. The occupancy rate of industrial parks and economic zones in the city is over 70%.

According to VCCI Vice President Hoang Quang Phong, after nearly 40 years of attracting FDI and developing industry, all localities in Northern Vietnam have industrial parks, and the occupancy rate remains a top priority over policy priorities regarding environmental and social criteria. Therefore, traditional industrial park-based industrial development is no longer suitable in the new context of digital transformation, 4.0 technology, and sustainable consumption.

"It must be frankly acknowledged that Northern Vietnam is facing many difficulties in achieving its goals of rapid and sustainable development, especially in industrial investment. The lack of coordination in industrial development strategies and investment attraction is an time-sensitive issue that needs to be addressed. At the same time, localities in the region need to innovate their thinking about industrial development in the new context," said VCCI President, adding that restructuring industrial investment in the region towards developing key, cutting-edge industries based on high scientific and technological content, innovation, research and development… “Transforming the growth model is an urgent requirement for Northern Vietnam today,” emphasized Vice President Hoang Quang Phong.

At the same time, it is recommended that the region redefine its key industries and key products, as well as identify production locations and support industrial supply sources to form product linkage chains that create breakthroughs in supply and consumption.

In addition, the region needs to restructure its economy based on the allocation of resources within the region (by province), establish clear industrial targets, and avoid setting rigid industrial targets that create unnecessary pressure when striving to achieve those targets.

VCCI Vice President Hoang Quang Phong stated that, for sustainable industrial investment development, the region needs to create an efficient ecosystem for the transformation and development of existing industries using an effective, innovative approach linked to information and communication technology. The restructuring of industrial zones, especially those located near the centers of cities in the region, should gradually move towards the direction of eco-industrial zones.

This long-term model is for the post-industrial phase of the region's export processing zones and industrial parks; at the same time, it will provide long-term orientation towards an ecological industrial park model with variations in urban, commercial, and service activities.