The figure was revealed at a press meeting chaired by the National Statistics Department under the Ministry of Finance to announce Vietnam’s socioeconomic statistics for the second quarter and the first half of 2025 on July 5 in Hanoi.

The fresh data shows that despite ongoing global economic challenges, the country’s industrial sector has maintained strong momentum.

Specifically, the industrial production index (IIP) for Q2 is estimated to have grown by 10.3 per cent on-year, with the manufacturing and processing sector expanding by 12.3 per cent.

The Industrial production index saw a sharp jump in many localities, with pre-merger Phu Tho province taking the lead at 46.6 per cent

Overall, for the first half of 2025, the IIP rose by 9.2 per cent on-year- outperforming the 8 per cent hike seen in the same period of 2024 and marking the most significant increase since the start of the decade.

Between 2020 and 2025, the on-year growth in the six-month IIP was as follows: 2.8 per cent in 2020, 9.0 per cent in 2021, 8.4 per cent in 2022, contracted 1.4 per cent in 2023, resuming 8.0 per cent growth in 2024, and 9.2 per cent growth in 2025.

The manufacturing and processing sector remains the primary growth engine, registering an 11.1 per cent increase in H1 of 2025 compared to a 8.9 per cent hike in the same period last year, contributing 9.1 percentage points to overall IIP growth.

Meanwhile, the electricity production and distribution sector rose by 4.5 per cent, adding 0.4 percentage points, and the water supply, waste management and wastewater treatment sector increased by 11.3 per cent, contributing 0.2 percentage points.

Notably, the positive growth trend was widespread. Along with this, after six months, 62 out of 63 localities. prior to the recent administrative merger, reported an on-year increase in their industrial production indices.

The only exception was Ba Ria-Vung Tau province (now part of Ho Chi Minh City), which saw a 2.6 per cent decline.

Several provinces posted particularly strong gains thanks to a robust performance in manufacturing and electricity-related industries.

Phu Tho’s manufacturing sector surged by 46.6 per cent in the first half of the year, followed by Nam Dinh at 33 per cent, Bac Giang 27.5 per cent, Thai Binh 25.3 per cent, Ha Nam 22.8 per cent, and Vinh Phuc 18.8 per cent.

The slower industrial growth in Ba Ria-Vung Tau weighed on the gross regional domestic product (GRDP) of the newly expanded Ho Chi Minh City (post-merger with Binh Duong and Ba Ria-Vung Tau provinces), which grew by only 6.56 per cent in the first half of 2025. The GRDP of pre-merger Ho Chi Minh City was 7.82 per cent.

Regarding the national industrial production picture, the National Statistics Department highlighted several key products that recorded sharp growth in the first half of 2025 compared to the same period in 2024.

These include automobiles, which grew 70.2 per cent; televisions, up 21.9 per cent; NPK compound fertiliser, up 18.9 per cent; liquefied petroleum gas (LPG), up 16.9 per cent; casualwear, up 14.9 per cent; cement, up 14.8 per cent; leather footwear, up 14.3 per cent; and steel bars and angles, up 13.9 per cent.

The consumption index for the manufacturing and processing sector in June rose by 0.6 per cent on-month, and by 10.1 per cent on-year.

For the first six months of 2025, the sector’s consumption index increased by 9.8 per cent compared to the same period in 2024.

However, the average inventory rate across the manufacturing and processing sector reached 85.7 per cent in the first half of 2025, higher than the 76.9 per cent hike recorded in the same period last year.

The higher inventory level could potentially impact the operational efficiency and profitability of manufacturing businesses.

At the press meeting on July 5, Nguyen Thi Huong, director general of the National Statistics Department, noted that Vietnam’s economy and society would continue to face significant challenges in the latter half of the year.

“Given Vietnam’s high degree of economic openness, the country remains vulnerable to unpredictable global developments.

“To achieve the 2025 growth target of 8 per cent and beyond, there must be concerted efforts from the entire political system, the government, businesses, the public, and support from the international community.

All levels and sectors need to bolster forecasting and scenario planning, adopt flexible and responsive policy measures, and remain steadfast in the dual goals of stimulating growth while ensuring macroeconomic stability, inflation control, social welfare, and improved living standards,” Huong stressed.

Exporters pivot to Middle East amid global trade shifts Amid rising global trade tensions and shifting market dynamics, Vietnamese firms are increasingly turning to the Middle East as a promising alternative for sustainable export growth.

Tra Vinh gains momentum as regional economic bright spot Despite undergoing administrative streamlining in preparation for potential provincial mergers, Tra Vinh province continues to stand out as a stable economic performer in the Mekong Delta region.

Vietnam ranks among most cost-competitive locations on global industrial map Vietnam ranks among the most cost-competitive locations on the global industrial map, despite a 70 per cent increase in rents, according to Cushman & Wakefield.

BANGALORE, INDIA – Media OutReach Newswire – 9 July 2025 – Arrow Electronics, a global provider of technology solutions, today announced the launch of its new Engineering Solutions Center(ESC) in Bangalore, India. This expansion reinforces Arrow’s commitment to making critical technologies such as AIoT, edge computing, intelligent sensing more accessible, while strengthening the engineering capabilities of domestic technology manufacturers across key sectors including industrial, automotive and transportation, energy management, and aerospace and defense in India, Southeast Asia, South Korea, and Japan.

India and several Southeast Asian countries are rapidly emerging as pivotal hubs for technology manufacturing, driven by global supply chain diversification and supportive domestic policies. The newly established India ESC is designed to help innovators and technology manufacturers adopt advanced technologies such as edge computing, energy management, automation, and e-mobility. The center aims to accelerate the development and deployment of next-generation intelligent and connected products—bringing them to market faster and more cost-effectively.
“Innovators across the region often face challenges in adopting cutting-edge electronic components and software technologies due to limited in-house engineering capabilities for rapid product development,” said Dr. Raphael Salmi, president of Arrow Electronics’ components business for South Asia, Korea, and Japan. “By leveraging our global network of resources, deep engineering expertise, and strong local presence, Arrow acts as a trusted technology partner—bridging the gap between innovation and execution.”
Arrow’s ESC offers comprehensive design engineering expertise across every stage of the product development lifecycle. Staffed by a sizable team of highly skilled application engineers with deep expertise in embedded software, wireless connectivity, power and analog technologies, and IP&E (Interconnect, Passive & Electromechanical) components, the center provides tailored engineering support to accelerate innovation and reduce time to market.
Key areas of support include:

• Component Engineering: Expert guidance on technology selection for MCU/MPU/FPGA, SoC, wireless connectivity, power & analog , and IP&E components
• System Engineering: In-depth system-level design reviews, block diagram validation, and bill-of-materials (BOM) optimization
• Reference Design Solutions : Serve as a technical backbone by offering system level reference design to accelerate customer’s time-to-market and enhancing customers confidence in designing our products.

The resources also encompass in-market expertise, technical training, ready-to-use software, component samples, along with world-class supply chain services—all aimed at accelerating the journey from ideation to design to impact. For more information, visit: https://www.arrow.com/en/tools-and-resources.

The issuer is solely responsible for the content of this announcement.

At last week’s Green Industry Forum in Hanoi, Nguyen Ba Hung, chief economist at the Asian Development Bank (ADB) in Vietnam, said that many countries have already succeeded in pursuing economic growth while cutting emissions.

“This affirms the feasibility of achieving both high growth and emissions reduction,” he said. “We are living in an era of growth. Green development is opening up significant opportunities. However, we must also acknowledge the accompanying risks and challenges.”

Hung questioned whether Vietnam is truly committed to joining this global trend. “By issuing its national strategy on green growth, the government has clearly expressed its intentions. However, to realise them, Vietnam must invest in green technologies, transform its business models, and revise its national growth approach – from enterprise level to macroeconomic scale,” he said.

While some businesses acknowledged the pressure and difficulties of adopting sustainable practices, they also demonstrated pioneering efforts, proactively choosing green transformation as a long-term strategy.

Nguyen Thi Phuong Thao, sales director at Garment 10 Corporation JSC, said the company embarked on its sustainability journey due to market demands and Vietnam’s net-zero commitment by 2050, as well as by the internal awareness of businesses.

“Without green transformation, it is difficult to integrate internationally and maintain our position in the global supply chain. Moreover, corporate responsibility for the environment and society is essential,” Thao said.

In the steel sector, Pham Cong Thao, deputy general director of VnSteel, noted that export markets were likely to exert the greatest pressure for change.

Vietnam currently exports around 13 million tonnes of steel annually, with 40 per cent going to developed economies – approximately 27 per cent to the EU and 13 per cent to the United States.

“The EU has implemented strict rules on imports, such as the Carbon Border Adjustment Mechanism, which will take effect in 2026. Only businesses that comply will be able to compete. Those that do not will have to find new markets,” he said.

He added that government regulations were also intensifying pressure on businesses to transition. In the plastics industry, Hoang Duc Vuong, chairman of VietCycle, said that exported plastic products must now contain at least 30 per cent recycled materials, a figure that will rise to 35 per cent by 2028. “In particular, plastic products like garbage bags exported to the EU must contain up to 70 per cent recycled plastic pellets. To meet this, the plastics industry must adapt and invest in upgrading its technology,” Vuong said.

As a result of such pressures, several companies have already begun their transition. Nguyen Thi Phuong Thao of Garment 10 described the corporation’s five-year green journey, which started with sourcing sustainable materials such as organic cotton and recycled inputs.

“We have invested in rooftop solar systems that generate millions of kilowatt-hours, and we have replaced coal-fired boilers with biomass alternatives, reducing thousands of tonnes of CO2 emissions annually,” she said.

Nguyen Phuong Nga, deputy general director of CNCTech Group, said over 70 per cent of the group’s partners come from markets with strict environmental standards, making compliance essential for securing its role in the global supply chain.

“Green transformation is a prerequisite for attracting high-quality investors from Europe and the United States. To welcome these global players, we need smart, green industrial parks and fully integrated ecological zones,” she said.

“Green growth has a direct impact on a business’s strategy. By investing early in both technology and infrastructure, and maintaining a long-term vision, companies can reduce production costs and meet their partners’ standards,” Nga added. “Sustainability today is not only about environmental responsibility – it is also key to securing a place in global supply chains.”

On a macroeconomic level, Hung from the ADB noted that traditional economic growth was once associated with greater resource exploitation and environmental degradation – a model no longer sustainable given its long-term costs.

“The goal of green growth is to maintain high economic expansion while progressively reducing resource consumption and limiting environmental damage,” he said. “For instance, even if the economy doubles in size, the increase in resource use should be limited to 20–30 per cent, thanks to improved technology, production innovation, and greater efficiency.”

He described this as a shift from a linear growth model to a circular economy, from development involving trade-offs to development without trade-offs.

“From an environmental perspective, this new growth approach allows not only for damage mitigation but also for positive environmental contributions, such as through waste treatment and reduced air pollution using green technologies,” he said.

Hung concluded that once an economy crosses the transition threshold, it can simultaneously raise incomes and lower environmental impacts, creating a strong foundation for green growth.

“Vietnam is nearing this threshold, entering the upper middle-income stage, with per capita income estimated at $4,000–4,500 per year. This suggests that, with the right policies, technologies, and investment conditions, Vietnam is close to entering a phase of green and sustainable development,” he said.