Southern Industrial Promotion: Overcoming challenges toward sustainable growth

Leveraging its dynamic economic advantages, southern industrial promotion strives to overcome challenges, drive innovation and advance sustainable industrial growth.

A bright spot in rural industrial development

The southern region has long been regarded as Vietnam’s economic engine, boasting advantages in geography, infrastructure, human resources, and particularly in the development potential of industries and handicrafts tied to agriculture and aquaculture. In 2025, the final year of the 2021-2025 socio-economic plan and a preparatory phase for 2026-2030, southern localities continue to view industrial promotion as an essential instrument to drive economic restructuring toward industrialization and modernization.

According to the Agency for Innovation, Green Transition, and Industrial Promotion, total industrial promotion funding in the southern region reached VND 55.753 billion in the first nine months of 2025, down more than 21% year-on-year due to administrative restructuring, streamlined management, and the adjustment of the two-tier management mechanism. Of this, local funding accounted for 78.7%, while national industrial promotion funds made up about 21.3%.

In the first nine months of 2025, southern industrial promotion supported seven enterprises and rural industrial facilities in upgrading machinery and production equipment.

In the first nine months of 2025, southern industrial promotion supported seven enterprises and rural industrial facilities in upgrading machinery and production equipment.

Although disbursement progress remained modest, only about 12.6% of the annual plan, localities maintained key activities, particularly supporting seven rural industrial establishments in adopting advanced machinery and equipment, with total funding exceeding VND 5.4 billion. Demonstration models and the application of technological innovations have encouraged many facilities to invest in automation lines, improve productivity and product quality, cut costs, and protect the environment.

At the same time, programs to recognize outstanding rural industrial products, promote trade, and showcase local brands continued to be prioritized. In the first nine months, localities organized four rounds of product evaluations and invested in five product display centers, helping build brand identity and expand market access.

Training programs to enhance management and production skills were also maintained, albeit on a modest scale. Two specialized workshops were held for nearly 60 participants, focusing on practical topics such as enterprise management, quality control, and market strategy development. These efforts are essential to help rural industrial enterprises adapt to new market demands amid digital transformation, green economy trends, and sustainable production goals.

Another notable achievement was the growing role of industrial consulting services in supporting businesses. In just nine months, industrial promotion units provided consulting for 120 projects, generating VND 10.5 billion in revenue 78% of the yearly target demonstrating strong efforts to sustain financial resources and expand service coverage.

Despite ongoing challenges, southern industrial promotion has reaffirmed its role as a “midwife” for rural industrial development. With its support, many enterprises have upgraded technology, improved product quality, created jobs, increased incomes, and contributed to regional industrial growth.

Accelerating in the final months of the year

Entering the fourth quarter of 2025, global economic uncertainties, inflationary pressures, market competition, and geopolitical tensions continue to pose risks. However, the southern industrial sector has proactively developed plans aligned with the Ministry of Industry and Trade and local People’s Committees, setting out concrete measures to fulfill annual targets.

First, localities will speed up the implementation and disbursement of both national and local industrial promotion funds, focusing on approved key projects. Monitoring and supervision will also be strengthened to ensure quality and efficiency, critical factors for maintaining confidence in the policy’s effectiveness.

In parallel, the southern industrial promotion network will advise local governments on issuing new industrial promotion programs for 2026-2030, aligned with Decision No. 2646/QD-BCT dated September 23, by the Ministry of Industry and Trade. Early planning will allow localities to build long-term mechanisms and policies, providing stability for businesses, especially as new regulations on digital transformation, green economy, and circular economy take effect.

Another priority is to consolidate the industrial promotion apparatus after administrative mergers, develop a professional workforce familiar with enterprises, and strengthen the network of local collaborators to ensure support reaches grassroots levels, particularly in remote areas with high development potential but limited policy access.

On communications, localities will continue modernizing outreach efforts, applying information technology and social media to more effectively disseminate support policies and successful models. Timely and accurate information will enable enterprises to seize opportunities, adjust production plans, and access both domestic and international markets.

In the new development phase, industrial promotion activities will be more closely linked with digital transformation, green growth, and cleaner production, consistent with the spirit of Resolution No. 19-NQ/TW of the Communist Party of Vietnam. This is not only an inevitable trend but also the pathway for the southern rural industrial sector to develop sustainably, strengthen competitiveness, and integrate deeper into global value chains.

Despite challenges from administrative restructuring and macroeconomic headwinds, southern industrial promotion has maintained steady momentum and a clear direction. From technological innovation and trade promotion to human resource development and consulting capacity, every effort contributes to creating new momentum for rural industrial growth in the southern region.

With the determination of authorities, sectors, and the business community, southern industrial promotion is well-positioned to achieve its 2025 targets, laying a solid foundation for the 2026-2030 phase, one focused on industrial modernization, new rural development, and sustainable growth.

In the first nine months of 2025, southern industrial promotion supported seven enterprises and rural industrial facilities in upgrading machinery and production equipment.

Hai Linh - Phuong Trang
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