Manufacturing, processing industry attracts FDI, driving economic growth

The processing and manufacturing industry significantly contributes to industrial growth in 2024

In the first 11 months of 2024, Vietnam attracted nearly US$31.4 billion of foreign direct investment (FDI), including the capital of newly-registered projects, capital increases of ongoing projects, and stock purchases by foreign investors, up one percent compared to the same period in 2023. 11-month FDI disbursement is estimated at US$21.68 billion, up 7.1 percent year-on-year.

According to experts, FDI in Vietnam is concentrated on high-value sectors, such as processing, electronics, automotive components, semiconductors, and green technology.

Thanks to good FDI attraction results, the manufacturing and processing industry has grown strongly. Data from the Ministry of Industry and Trade show that in the first 11 months of 2024, the production index of this sector increased by 9.7 percent (against the growth rate of one percent in the same period of 2023), contributing 8.5 percentage points to the overall growth of the economy.

For many years, the manufacturing and processing industry has been a crucial pillar of the entire industrial sector. Its products not only cater to domestic demand, but are also exported.

According to the Ministry of Industry and Trade, export-oriented sectors, such as textile and garment, footwear, and electronics have been successfully integrated into global value chains, demonstrating high competitiveness and securing a strong position in international markets.

Many industrial products, such as footwear, textiles and garments, and electronics, hold high export rankings regionally and globally. Supporting industries have gradually developed, contributing to increasing localization rates and added value in various industries, thereby fostering deeper participation of domestic businesses in production networks and value chains.

The Ministry of Industry and Trade in general, and its Industry Agency in particular, have put in place timely policies to resolve difficulties facing businesses in the processing and manufacturing sector.

To further enhance the role of the manufacturing and processing sector, as well as the entire industrial sector, in the economy, in 2025, the Industry Agency will continue to provide relevant authorities with consultancy on policy making to create new growth resources for industries, both in the short term and long term.

Specifically, the agency will propose a system of legal documents to promote the development of foundation industries, and a program to develop supporting industries in the new period from 2025-2035. The agency will also submit the amended version of Decree 111/2015/ND-CP dated November 3, 2015 on the development of supporting industries to the Government for approval.