Strengthening competitiveness and localization

In 2025, the Vietnam Industry Agency under the Ministry of Industry and Trade proactively and drastically implemented key tasks outlined in Government Resolution 01, providing timely solutions to difficulties and mobilizing resources for industrial development. Consequently, the Index of Industrial Production (IIP) rose by 9.2 percent, with the manufacturing and processing sector remaining the primary driver of growth, increasing by 10.5 percent.

At a review conference for 2025 held on the afternoon of January 15, representatives from major corporations shared their orientations for developing foundational industries toward self - reliance.

Truong Hai Group (THACO) Deputy General Director Doan Dat Ninh stated that thanks to the partnership of the Ministry of Industry and Trade and the Vietnam Industry Agency, THACO has maintained stable operations and enhanced its competitiveness. Since 2003, the group has focused on mechanical engineering and supporting industries, raising localization rates to 15 - 50 percent for passenger cars, 40 - 70 percent for trucks, and over 70 percent for buses. Additionally, THACO has established a key mechanical industrial center and expanded exports to international markets.

Entering 2026, following government orientations to master technology and increase localization in railway projects, THACO aims to pioneer investment in this sector. The group has established strategic partnerships and deployed a railway and multi - purpose mechanical industrial complex in Ho Chi Minh City. The targets include reaching a 25 percent localization rate for locomotives by 2030 and 70 percent for carriages and equipment by 2035. 

To realize these goals, THACO proposed that the Ministry of Industry and Trade advise the Government to promptly resolve investment bottlenecks, facilitating the formation of a highly integrated railway industrial ecosystem with synchronized maintenance systems and shared domestic technology and components.

In the heavy industry sector, a representative from Hoa Phat Group noted that Vietnam's steel industry has transformed from import dependence to proactive production, becoming an important global steel hub. The current trend involves shifting from simple construction steel to manufacturing and alloy steel serving high - tech industries. 

While steel demand is forecast to rise sharply over the next decade due to infrastructure and real estate development, Hoa Phat emphasized the need for long-term planning to avoid future oversupply. Furthermore, the enterprise recommended measures to protect the domestic market against pressure from trade remedy investigations by international partners.

Breakthroughs in science and technology development across industrial sectors

In 2025, the Index of Industrial Production (IIP) achieved an impressive growth of 9.2 percent, the highest level since the Covid - 19 pandemic. Industry has affirmed its role as the primary growth engine, leading the economy toward modernization, high - tech application, and sustainable development.

During a working session on sectoral development orientations, Deputy Director General of the Agency for Innovation, Green Transformation, and Industrial Promotion, Tran Minh, emphasized the requirement for breakthrough policies. The focus lies on promoting localization rates and technological autonomy in key sectors while identifying technological innovation challenges with large market scales. Simultaneously, there is a need to effectively implement the “Three Pillars” model involving the State, scientists, and enterprises to bridge the gap between technological innovation demands and academic institutions.

Regarding future orientations, Deputy Minister of Industry and Trade Truong Thanh Hoai directed that traditional industries such as textiles and footwear must focus on enhancing localized value to reduce dependence on FDI value chains. Meanwhile, for emerging industries including renewable energy, railways, minerals, and rare earths, it is essential to actively bolster manufacturing capacity within the domestic market.

In the field of supporting industries, the Deputy Minister requested a focus on strengthening the internal capabilities of domestic enterprises to increase the Vietnamese value content in products. The robust recovery of manufacturing scale amidst global economic challenges serves as a testament to the effectiveness of the Government and the Ministry of Industry and Trade's policies in stabilizing production and expanding markets.