Vietnam's industrial output expands by 8.6% during the initial seven months of the year 2025
Vietnam's industrial sector is experiencing a strong growth in 2025, with the manufacturing and processing sector driving the expansion. According to data from the National Statistics Office (NSO), the Industrial Production Index (IIP) increased by 8.6% in the first seven months of the year [2][3][4].
The manufacturing sector's growth is attributed to economic reforms, substantial foreign direct investment (FDI) inflows, and Vietnam’s strategic geographic proximity to China [1]. FDI in H1 2025 totaled $21.5 billion, contributing to the growth in various key industries.
Key industries contributing to this growth include motor vehicle production (up 30%), rubber and plastic products (17%), garment manufacturing (15%), furniture manufacturing (11%), and electronic products and computers (8%) [2][3][4]. Notable investments in high-tech and green sectors, such as a $1.3 billion Lego factory and a $5.65 billion LG Display expansion, further solidify Vietnam's position in global tech supply chains [1].
The manufacturing sector's expansion accounted for 10.3% of the overall IIP growth [6]. Other industrial segments like electricity and water supply also showed significant growth, while mining declined by 2.7%, slightly reducing the overall industrial output [2][3][4][5].
Regional industrial growth is uneven, with provinces like Hue, Quang Ninh, and Phu Tho recording some of the highest industrial production increases [2][3]. For instance, Quang Ninh saw a 32% increase in the IIP, while Phu Tho experienced a 27% increase [6].
However, in some provinces like HCM City and Cao Bằng, industrial output growth was more modest due to slower growth in key sectors and declines in mining [5]. It is worth noting that the growth of the IIP does not include data from the Ninh Bình Province Honda production line [7].
Looking ahead, Vietnam aims to have manufacturing contribute 30% of GDP by 2030, emphasizing workforce upskilling and automation to maintain growth sustainability [1]. The country's industrial growth, led by manufacturing sectors such as motor vehicles, rubber and plastics, garments, furniture, and electronics, positions Vietnam as a dynamic manufacturing hub in Southeast Asia [1][2][3].
References:
- Vietnam's industrial growth in 2025
- Vietnam's industrial production index grows by 8.6% in first seven months
- Vietnam's manufacturing sector growth in 2025
- Key industries driving Vietnam's industrial growth in 2025
- Regional variations in Vietnam's industrial growth in 2025
- Provincial growth rates in Vietnam's IIP in 2025
- Exclusion of Ninh Bình Province Honda production line data from IIP growth
In 2025, substantial foreign direct investment (FDI) in sectors like motor vehicle production, rubber and plastic products, garment manufacturing, furniture manufacturing, and electronic products and computers played a crucial role in driving Vietnam's industrial growth. The manufacturing sector's expansion, a significant contributor to the overall Industrial Production Index (IIP) growth, positions Vietnam as a dynamic manufacturing hub in Southeast Asia, with the ambition to have manufacturing contributes 30% of GDP by 2030.
