What's Happening?
Vietnam's industrial sector has experienced a significant growth of 9.5% in 2025, marking the highest increase since the COVID-19 pandemic. This growth is attributed to the country's shift from traditional
manufacturing to becoming a key player in global supply chains. The manufacturing and processing sector, in particular, saw a 10.6% increase, driving this transformation. Despite challenges such as global trade tensions and natural disasters, Vietnam's economy has shown resilience, maintaining macroeconomic stability and low inflation. The country's total trade turnover reached $920 billion, placing it among the top 15 trading powers worldwide. The government has been instrumental in supporting enterprises and restructuring production models to adapt to global supply disruptions.
Why It's Important?
The growth of Vietnam's industrial sector is significant as it highlights the country's increasing role in global supply chains, which can have far-reaching implications for international trade dynamics. As Vietnam strengthens its industrial capacity, it becomes a more attractive destination for foreign investment, potentially shifting economic power balances in the region. The focus on mastering new technologies and fostering public-private partnerships positions Vietnam for sustainable growth, which could influence global economic trends. Additionally, Vietnam's ability to maintain economic stability amid global uncertainties serves as a model for other developing economies facing similar challenges.
What's Next?
Looking ahead, Vietnam plans to focus on strategic transformation in 2026, emphasizing higher productivity and value-added growth. The Ministry of Industry and Trade has identified science, technology, innovation, digital transformation, and green transition as key drivers for the next phase of development. The country aims to master core technologies in emerging sectors such as semiconductors and renewable energy. Efforts will continue to upgrade and localize production and supply chains, reducing external dependencies and reinforcing Vietnam's position in the global value network. Policy innovation will be crucial to fostering strong domestic enterprises capable of leading smaller businesses.
