Processing industry - the golden key to export breakthrough

Linh Anh |

With nearly 150 billion USD, the processing industry, including electronic components, machinery, and garments, accounts for nearly 50% of Vietnam's export value in the first 8 months of 2025 and has become the "golden key" for Vietnam to break through exports.

Impressive numbers

In August 2025, Vietnam's import-export picture recorded a remarkable step forward. According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, total import-export turnover in the month reached 83.06 billion USD, up 16% over the same period. In the first 8 months, this figure reached 597.93 billion USD, up 16.3%, continuing to maintain a trade surplus. Of which, exports reached about 306 billion USD, exceeding the growth target set at the beginning of the year. On average, exports reached 38.2 billion USD per month, exceeding 42 billion USD in July and August alone - an unprecedented record in history.

The main driving force for Vietnam's strong export breakthrough comes from two groups of goods: Agriculture - seafood and processing industry. These are considered the golden pillars, harmoniously combining natural advantages, production traditions and efforts to innovate technology and build brands of enterprises.

Agricultural and aquatic products promote natural advantages

In the agricultural sector, coffee continues to hold a prominent position with an output of 1.4 million tons with a turnover of 6.5 billion USD. Vietnam still maintains its role as the world's largest robusta importer, while boosting exports of processed coffee and instant coffee, increasing added value. Pepper also made a strong impression with an estimated turnover of 3.3 billion USD, up nearly 18% over the same period, showing the potential of a commodity industry that has suffered many fluctuations.

One of the brightest spots is rice. For many consecutive months, rice exports have maintained a "fast" growth rate, affirming their second position in the world. Specialties such as ST24, ST25 have helped Vietnam not only export a lot but also export delicious, branded rice, conquering even demanding markets such as the US, EU or Japan. This success also shows an important transformation: From a crude seller, Vietnamese rice is moving towards building a national brand.

Seafood also recorded positive results, with 8-month turnover reaching 7.16 billion USD, up more than 13% over the same period. Key products including shrimp, pangasius, tuna, squid - octopus continue to dominate the international market. In particular, pangasius - a special product of the Mekong Delta - affirms the brand of "fishing land", both contributing foreign currency and creating jobs for millions of workers. Many seafood enterprises have stepped up investment in deep processing technology, diversifying products from frozen fillets, steamed shrimp to collagen, gelatin, fish oil. This helps Vietnamese seafood products not only stop at raw materials but increasingly expand to refined, high-value products.

Gold key to export breakthrough

If agricultural and aquatic products are a natural advantage, the processing industry is considered the "golden key" for Vietnam to break through exports. Data from the Ministry of Industry and Trade shows that a series of processing industrial goods have grown strongly. Computer, electronic products and components reached 66.9 billion USD, continuing to hold the top spot in the largest export group. Machinery, equipment, tools and spare parts reached 37.4 billion USD, up nearly 14%. Textiles reached 26.5 billion USD, up 8.5% over the same period, while shoes reached 16.1 billion USD, up 7.2%.

Transportation and spare parts reached 11.4 billion USD; wood and wood products reached 11.1 billion USD, recording a growth rate of nearly 15%. In particular, the group of plastic, toys, sports equipment and parts grew by 121.8%, reaching about 5.5 billion USD, demonstrating the diversity and strong momentum of Vietnam's processing industry.

The prosperity of the processing industry comes from many reasons. Enterprises have invested heavily in production technology, applied international standards, promoted design and built their own brands. At the same time, Vietnam effectively took advantage of new-generation free trade agreements such as CPTPP, EVFTA, RCEP to open the market, reduce tariff barriers, and increase competitiveness. Not only focusing on processing, many businesses have entered the global value chain by developing exclusive products, meeting high-end consumer demand, and being environmentally friendly.

Challenges and opportunities

Deputy Minister Nguyen Sinh Nhat Tan affirmed that the export growth target of an average of 12%/year was already a challenge, but in the past 8 months, Vietnam has achieved an increase of over 16%. To achieve the target, it is necessary to reach about 37.9 billion USD in export turnover per month, but in fact, in recent months, this threshold has been exceeded. That result clearly reflects the competitiveness of Vietnamese goods, in the context of the global economy still facing many potential uncertainties.

However, opportunities always come with challenges. Vietnam's agriculture still has small-scale, fragile production, making it difficult to control quality evenly. Seafood face technical barriers, high environmental requirements, and traceability. The processing industry, despite rapid growth, still depends heavily on imported raw materials, and is vulnerable to international price fluctuations. Competition in the global market is increasingly fierce, especially from countries in the same segment such as Thailand, Indonesia, India.

To overcome challenges and make the most of opportunities, there needs to be a synchronous solution. Building a national brand for key products such as rice, coffee, pangasius, woodwork, etc. is an urgent task. Investing in logistics infrastructure, refrigeration warehouses, and specialized seaports will help reduce costs and improve transportation capacity. Green transformation and digitalization of production processes, applying organic and low-carbon standards not only meet the strict requirements of the EU, the US, and Japan but also create long-term advantages. At the same time, developing high-quality human resources in governance, market research, and product design will be the foundation for the Vietnamese processing industry to go further in the global value chain.

The results of the first 8 months of 2025 not only show a breakthrough in scale, but also affirm the shift in quality of Vietnamese exports. From rice grains, coffee beans, shrimp, fish to computers, electronics, textiles, wood, all contribute to making the brand "Made in Vietnam" increasingly strong. In the context of extensive integration, agricultural products, seafood and processing industries will continue to be the golden pillars, helping Vietnam affirm its position on the global trade map and towards the goal of sustainable development.

Vietnam's import and export may exceed 800 billion USD

Assessing the import-export situation in the first 8 months of 2025, Associate Professor, Dr. Nguyen Thuong Lang said that this is a positive signal showing the recovery trend and sustainable growth of exports in the context of many fluctuations in the global economy.

According to Associate Professor, Dr. Nguyen Thuong Lang, if we consider the structure of goods, the processing industry group accounts for an overwhelming proportion with 271.06 billion USD, equivalent to 88.6% of total export turnover. This reflects that the Vietnamese economy has entered a period of export relying heavily on processing and manufacturing industry instead of mainly relying on agricultural products and raw minerals as before.

"This shows that Vietnam's export structure is increasingly focusing on some key groups of goods, large in scale and high competitiveness in the international market. The positive point is that the number of items over 1 billion USD is very diverse (29 items), reflecting the richness in the export structure, avoiding over-reliance on a few products. In addition, the fact that there are up to 7 items exceeding the 10 billion USD mark shows that some industries have truly risen to become "sharpeness points" in the global supply chain" - Associate Professor, Dr. Nguyen Thuong Lang analyzed.

However, according to this expert, most of the large-value export items belong to the FDI-linked processing industry group, such as phones, computers, and electronic components. Purely Vietnamese products, especially agricultural and aquatic products, have improved, but the proportion is still quite low (accounting for more than 10%).

According to Associate Professor, Dr. Nguyen Thuong Lang, if compared with the target of 800 billion USD, Vietnam has now completed about 74.7% of the plan after only 8 months. Average nearly 75 billion USD per month. At this rate, in the last 4 months of the year, only need to maintain an average of 50.5 billion USD/month to reach the target of 800 billion USD - a completely feasible figure, even capable of exceeding.

"It should be noted that the domestic economic sector still has low growth. If this area is not strongly promoted, the imbalance in export structure can become a long-term barrier. Therefore, in addition to taking advantage of FDI, policies to support domestic enterprises to participate more deeply in exports need to be given more attention" - Associate Professor, Dr. Nguyen Thuong Lang recommended. Tuyet Lan

Linh Anh
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