On June 12, information from the People's Committee of Lao Cai province, industrial production in the area continued to maintain a positive recovery momentum in the first 6 months of 2026, with production value estimated at 34,413 billion VND, making an important contribution to local economic growth.
In the first 6 months of 2026, the industrial and construction sectors continue to play an important role in the economic structure of Lao Cai province. The production and business activities of enterprises have many positive signs, and key infrastructure and industrial projects are focused on implementation.
Right from the beginning of the year, the province has implemented many solutions to support businesses, remove difficulties, promote administrative procedure reform, ensure electricity sources, raw materials for production and create favorable conditions for industrial investment projects.
As a result, the industrial production index (IIP) is estimated to increase by 11.5% compared to the same period in 2025. The value of industrial production reached approximately 34,413 billion VND, equal to 43.4% of the annual plan.
In which, the mining, processing, and manufacturing industries continue to play a key role. Some strong industrial products such as copper and fertilizer maintain stable output, meeting market demand.
Many industries have quite good growth rates such as textiles increasing 1.39 times; garment production increasing 1.12 times; leather and related products production increasing 1.12 times; wood processing increasing 27.52%; production of rubber and plastic products increasing 2.73 times; production of beds, cabinets, tables and chairs increasing 28.72%.
The above results come from the business expanding production, having new orders, and gradually stabilizing operations in the fields of textiles, footwear, and building materials.
However, some industries still faced difficulties. The production index of the food processing industry decreased by 5.1%, beverage production decreased by 15.33%. The electricity production and distribution industry decreased by 9.51% due to lower water inflow to hydropower reservoirs than the same period.
In industrial development, Lao Cai made its mark with the groundbreaking ceremony of Thong Nhat 1 Industrial Cluster on May 7, 2026. The project has a scale of nearly 75 hectares, with a total investment of about 860 billion VND, oriented to develop according to the green industry - logistics model.
In addition, on May 12, 2026, Lao Cai Provincial People's Committee approved the investment policy and selected an investor to implement the iron ore mining project at Quy Xa mine, Van Ban commune.
The project has a designed capacity of 5 million tons of ore/year, expected to resume mining from October 2026, contributing to supplementing raw materials for the metallurgical industry.
The energy sector continues to be maintained stably with 104/105 hydropower plants operating safely, meeting production and living needs in the area.
However, the industry still faces some difficulties due to slow site clearance progress at some projects, some factories have not fully utilized their capacity due to lack of input materials and difficulties in the consumption market.
In the last 6 months of 2026, Lao Cai province will continue to focus on removing obstacles for businesses, promoting key industries such as mining, metallurgy, chemicals, construction materials and processing and manufacturing.
The locality is also accelerating the completion of industrial park and cluster infrastructure, preparing at least 500 hectares of clean land to serve investment attraction; and promoting key energy and industrial projects to create more growth momentum, towards the GRDP growth target of 20.1% in 2026.
