Recovery of industrial sector creates momentum for sustainable economic development

Impressive growth of key industries

Since the beginning of 2025, industrial production has continuously achieved impressive growth, affirming its role as a “locomotive” leading the trade, consumption and export sectors, contributing to strengthening the foundation for the country’s sustainable development goals.

According to the report at the regular press conference of the second quarter of 2025 of the Ministry of Industry and Trade, the index of industrial production (IIP) of the whole industry was estimated to increase by 8.8% compared to the same period in 2024. This growth rate far exceeds the forecast, marking a strong step forward compared to the difficult period in 2023, when the economy was heavily affected by declining orders, high input costs and global geopolitical instability.

The processing and manufacturing industry continues to play a key role with a growth rate of 10.8%. As a sector accounting for a large proportion of the GDP structure, the processing and manufacturing industry not only creates high added value but also attracts a large number of workers, while making an important contribution to export turnover.

Mai Thu Hien, Deputy Director of the Department of Planning and Finance under the Ministry of Industry and Trade emphasised: “This recovery is a testament to the continuous efforts of the business community, combined with the flexible and drastic economic management policies of the Government and ministries and branches.”

The IIP growth rate of 8.8% not only reflects the recovery of the manufacturing sector but also shows Viet Nam’s remarkable adaptability to global economic fluctuations. This affirms that industry is still an important pillar, creating a foundation for GDP growth in 2025.

Many key industries recorded impressive growth, demonstrating the strong transformation of the manufacturing sector. The motor vehicle manufacturing industry increased by 34.3%; leather and related products increased by 16.8%; rubber and plastic products increased by 16.1%; garment manufacturing increased by 15.7%; other means of transport increased by 14.1%; Food processing increased by 8.8%. The output of key industrial products also grew significantly, with automobiles increasing by 70.3%, televisions increasing by 25.6%, leather footwear increasing by 11.5% and rolled steel increasing by 13.8%.

Growth is no longer limited to traditional industrial centres such as Ho Chi Minh City, Binh Duong or Bac Ninh but has spread to many other localities. Phu Tho achieved an IIP growth rate of 46.7%, Nam Dinh increased by 29.6%, Bac Giang increased by 28.1%, Bac Kan increased by 23.6% and Ha Nam increased by 22.5%. This result is a testament to the effectiveness of policies to attract investment in the processing and manufacturing industry, along with reforms in administrative procedures, synchronous infrastructure development and improvement of human resource quality in localities.

The spread of industrial growth to localities shows that Viet Nam is achieving more balanced development among regions. This is a positive signal, not only helping to reduce pressure on large cities but also promoting comprehensive socio-economic development.

Effective policies, businesses promote internal strength

The impressive recovery of the industrial sector is associated with the Government’s practical management policies. Production support packages, trade promotion, loan interest rate reduction, administrative procedure reform and public investment promotion have created a favourable business environment, helping businesses overcome difficulties.

In particular, solutions to unblock credit flows and improve logistics have supported businesses to reduce costs and enhance competitiveness.

In the context of high production and logistics costs, many businesses have proactively transformed their production strategies towards greening and digitalisation. The application of automation technology, artificial intelligence and smart supply chain management has helped businesses improve productivity, reduce dependence on imported materials and effectively take advantage of new generation free trade agreements (FTAs) such as EVFTA and CPTPP.

The recovery of industrial production has created a positive spillover effect to other sectors. Import-export turnover in the first 5 months of the year reached 355.79 billion USD, up 15.7%, of which exports increased by 15.7%, with processed industrial goods accounting for nearly 85% of the total turnover. Total retail sales of consumer goods and services increased by 7.9%, reflecting a stable recovery of domestic demand. These indicators show that market demand is returning, creating momentum for industrial production and forming a healthy growth cycle between production, consumption and export.

Despite many positive results, the industry still faces many challenges. Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan commented that the world economy still has many potential instabilities, such as the reciprocal tax policy from the US, technical barriers and environmental and labor requirements from the EU, along with fluctuations in raw material prices due to Russia-Ukraine tensions and conflicts in the Middle East. These factors can disrupt the global supply chain, affecting manufacturing industries that depend on imports.

“To cope with the challenges, Viet Nam is making efforts to take advantage of new-generation FTAs, while synchronously implementing Resolutions No.57, 59, 66, 68 on industrial development, institutional innovation, promoting science and technology and enhancing the capacity of private enterprises. The Ministry of Industry and Trade is also coordinating with localities to build eco-industrial parks, encouraging enterprises to invest in renewable energy and clean technology,” Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan shared.

According to experts, the development of eco-industrial parks not only helps businesses meet international standards but also creates long-term added value, contributing to improving the competitiveness of Vietnamese industry in the international arena.

With the current growth momentum, the GDP growth target of 8% in 2025 is completely feasible. The strong recovery of the industrial sector, combined with the growth momentum of exports and the domestic market, will be a “launching pad” for Viet Nam to not only overcome challenges but also create a breakthrough in the period of deep integration. Industry, as an economic pillar, not only brings economic value but also contributes to shaping the future of sustainable development for the country.

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