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) rose by over 10.1% year on year, with the manufacturing sector expanding by up to 11.1%, indicating a robust development trend in high value-added production sectors. Manufacturing remains the most appealing location for FDI.

In the first 11 months of 2025, total registered FDI totalled US$33.69 billion, with the processing and manufacturing sectors accounting for 82.9% of total implemented capital. This clearly demonstrates Vietnam's role as a vital manufacturing center in the global supply chain, particularly in the electronics, components, precision mechanics, and supporting sectors.

“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 claimed that Northern Vietnam is full of promise, and Hai Phong is seen as an appealing place that continues to draw global firms. Hai Phong City is now among the top places drawing the most FDI in the country, with 1,000 FDI projects from 40 countries and territories, totalling 33.8 billion USD. The occupancy rate of the city's industrial parks and economic zones exceeds 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 a 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 Vice President.

Vice President Hoang Quang Phong emphasised the need to transform Northern Vietnam's growth model by focusing on developing key industries with high scientific and technological content, innovation, and research and development.

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.

In VCCI Vice President Hoang Quang Phong's opinion, in order to achieve long-term industrial investment development, the region must create an efficient ecosystem for the transformation and development of existing industries through an effective, innovative approach based on information and communication technology. Industrial zones, particularly those near regional city centers, should be gradually restructured into eco-industrial zones.

This long-term plan is for the region's export processing zones and industrial parks' post-industrial phase; at the same time, it will give a long-term direction toward an ecological industrial park model with variations in urban, commercial, and service activity.