Industrial production accelerates since year’s beginning

Manufacturing and processing industry maintains performance

According to the General Statistics Office, as the Lunar New Year celebration came in January 2025, there were fewer working days than the previous month and January in 2024. Therefore, the index of industrial production (IIP) in January 2025 is estimated to decrease by 9.2 percent compared to the previous month but increased by 0.6 percent compared to the same period last year. The processing and manufacturing industry grew by 1.6 percent. Electricity production and distribution increased by 0.4 percent; and water supply, waste management and treatment activities by 9.2 percent. However, the mining industry experienced a decline of 10.4 percent.

In January 2025, production of some grade II key industries increased compared to the same period last year: Motor vehicle production surged by 33.8 percent, while furniture manufacturing increased by 10.6 percent and leather and related product production 10.3 percent. The electronics and computer products and food production sector saw modest growth rates of 3.8 percent and 2.1 percent, respectively.

Production of electronic components at Katolec Vietnam Co., Ltd. (Quang Minh Industrial Park, Me Linh District) - photo: Nhat Nam

In 2025, the Ministry of Industry and Trade (MoIT) targets to increase the IIP by about 9-10 percent compared to 2024. Director of the Vietnam Industry Agency Pham Nguyen Hung said that in 2025, the world economy still has many potential sources of instability, especially the possible resurgence of trade protectionism and trade wars, along with new geopolitical tensions. In Vietnam, domestic industries have more market opportunities from new foreign investment flows and large projects in key national sectors, especially in high-tech industries, such as semiconductors, renewable energy, high-speed railways, etc.

To achieve the IIP growth target of 9-10 percent, Hung said the industry and trade sector will continue to effectively implement support policies approved by the Government to ease difficulties and obstacles in production and business activities of enterprises; and also effectively work with localities to promote the growth momentum of industries in key economic regions, creating a motivation to keep driving industrial growth nationwide.

Localities enter production cycle

Right after the Lunar New Year holidays, localities have also entered production, and as a result, industrial production in January 2025 increased significantly.

Nam Dinh is a typical example, as the local IIP in January 2025 is estimated to grow by 29.49% year on year, of which the processing and manufacturing industry saw the highest increase at 29.86 percent, continuing to play the role of growth driver for Nam Dinh’s industrial sector.

In January 2025, the processing and manufacturing sector achieves a year-on-year growth rate of 1.6 percent

As for Bac Giang, the IIP in January is estimated to increase by 6.9 percent over the same period last year, of which the processing and manufacturing industry is estimated to reach 107.1 percent; the electricity, gas, hot water production and distribution is estimated to reach 112.61 percent; the water supply and wastewater treatment is estimated to reach 93.12 percent.

Some other cities and provinces also recorded significant year on year growth. They are Bac Kan (28.5 percent), Ben Tre (24.2 percent), Binh Phuoc (17.0 percent), Kien Giang (16.6 percent), and Hai Phong (16.3 percent).

According to experts, the recent trend of international supply chain relocations has created great opportunities for Vietnam. If Vietnam takes advantage of this trend and speed up digital and green transformation, it can create a breakthrough in industrial growth in 2025 and the following years.