2025 will witness a strong recovery and breakthrough in the industrial sector, especially the processing and manufacturing industry.
According to information from the Ministry of Industry and Trade, in 2025, the industrial production index (IIP) is estimated to reach 9.5% (in 2024 it will increase by 8.2%), this is the highest increase since the Covid-19 pandemic occurred. In which, the manufacturing and processing industry is estimated to increase by 10.6% (in 2024 it will increase by 9.5%), contributing 8.5 percentage points to the overall growth rate, creating a great driving force to promote macro-economic growth.
Industrial production flourished thanks to "efforts to remove difficulties, support businesses to overcome difficulties and transform production models" of the Government and the Ministry of Industry and Trade despite many difficulties due to global supply disruptions, natural disasters, storms and floods...
Notably, the domestic industrial capacity has increased as domestic enterprises are increasingly participating in the global supply chain, contributing nearly 50% of the industrial production value (compared to ~35% in 2020).
According to the Ministry of Industry and Trade, the rise of the industrial sector is reflected in impressive figures of industrial GDP in 2025 reaching about 200 billion USD, a sharp increase compared to 136 billion USD in 2020. The electronics industry alone - a field that was once insignificant in 2010 - has now become the largest exporting industry in Vietnam (~100 billion USD), turning Vietnam into an important link in the global technology value chain.
Our Party has repeatedly emphasized that an economy that wants to become a great power must rely on the pillar of industry. Industrial achievements in 2025 show that Vietnam is on the right track in the direction of industrialization along with modernization, creating a solid foundation to achieve the goal of modern industrial water by 2030.
However, according to Deputy Minister of Industry and Trade Phan Thi Thang, in addition to positive results, many industrial enterprises still have difficulty accessing capital for investment in expanding production even though interest rates have decreased; high input material costs and fluctuations in the USD exchange rate reduce the competitiveness of export products.
Domestic production still depends heavily on imported raw materials, the level of linkage between enterprises in the same industry and between FDI enterprises and domestic enterprises is still limited; there have not been sustainable domestic supply chains and large-scale industry clusters, leading to low added value created domestically - Deputy Minister Thang assessed.
To contribute to the double-digit economic growth target from 2026, Deputy Minister Phan Thi Thang said that in 2026, the Ministry of Industry and Trade will focus on directing the removal of difficulties, promoting production and business, expanding markets for key industries, striving to increase the industrial production index (IIP) by over 10%.
