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Water resource management

Vietnam's Industrial Production Continues to Grow, Exceeds Expectations

Strategic Insights

— 1 min read

Vietnam's economic growth engine continues to show strength, as the Index of Industrial Production (IIP) has maintained a yearly growth rate of 8.6% in the first seven months of 2025, according to the National Statistics Office (NSO). This growth is largely attributed to the manufacturing and processing sector, which expanded by 10.3% and contributed 8.5 percentage points to the overall IIP. The strong performance of various industries, such as motor vehicle production, rubber and plastic products, and garment manufacturing, has also contributed to the overall growth.

Key Takeaways:

  • The Index of Industrial Production (IIP) in Vietnam grew by 8.6% in the first seven months of 2025, with the manufacturing and processing sector being the main driver of this growth.
  • The manufacturing and processing sector expanded by 10.3%, contributing 8.5 percentage points to the overall IIP.
  • Electricity production and distribution increased by 4.6%, contributing 0.4 percentage points to the IIP, while the water supply, waste, and wastewater management sector grew by 10.4%, adding 0.1 percentage points.
  • Several key industries recorded robust year-on-year growth, including motor vehicle production (up 30%); rubber and plastic products (17%); garment (15%); furniture manufacturing (11%); and electronic products, computers, and optical products (8%).
  • Among the 34 localities that recorded increases in the IIP, Hue posted a 43% rise, followed by Quang Ninh with 32% and Phu Tho with 27%.
  • Employment in industrial enterprises continued to improve steadily, with a 1% increase in workforce compared to the previous month and a 3.9% year-on-year growth as of July 1, according to the NSO.

Statistics:

  • Index of Industrial Production (IIP) growth rate: 8.6% (first seven months of 2025)
  • Manufacturing and processing sector growth rate: 10.3% (contribution: 8.5 percentage points to overall IIP)
  • Electricity production and distribution growth rate: 4.6% (contribution: 0.4 percentage points to IIP)
  • Water supply, waste, and wastewater management sector growth rate: 10.4% (contribution: 0.1 percentage points to IIP)
  • Year-on-year growth rates for key industries:

+ Motor vehicle production: 30%

+ Rubber and plastic products: 17%

+ Garment manufacturing: 15%

+ Furniture manufacturing: 11%

+ Electronic products, computers, and optical products: 8%

  • Employment growth in industrial enterprises:

+ 1% increase in workforce compared to the previous month

+ 3.9% year-on-year growth as of July 1

Sources:

  • National Statistics Office (NSO)
  • Vietnam's Index of Industrial Production (IIP) report, first seven months of 2025

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