bet88 netIndustrial production: Driving force for economic growth

Despite facing significant hurdles in 2024, including sluggish global economic growth that impacted its export orders and a slow recovery in domestic demand due to storms and natural disasters, particularly Typhoon Yagi, Vietnam’s industrial production has posted an impressive comeback and continues to be bet88 net driving force behind bet88 net broader economic recovery.

According to bet88 net Ministry of Industry and Trade (MoIT), industrial production surged 8.4 per cent year-on-year in bet88 net first eleven months of 2024, marking bet88 net highest growth since 2020. With this strong momentum, bet88 net full-year Index of Industrial Production (IIP) is expected to exceed 8 per cent, surpassing bet88 net initial target of 7-8 per cent.

Swift and widespread recovery

Reflecting on outcomes in industrial production for 2024, Mr. Pham Tuan Anh, Deputy Director of bet88 net Industrial Department at MoIT, attributed bet88 net recovery to bet88 net effectiveness of government support measures, bet88 net Prime Minister’s decisive leadership in public investment capital disbursement, bet88 net implementation of key industrial projects, and bet88 net successful attraction of promising FDI. bet88 net capabilities of domestic businesses have also improved. Moreover, aggressive efforts to expand markets and boost exports have been crucial, enabling bet88 net industrial sector to recover quickly and broadly, acting as a key driver for bet88 net country’s economic growth.

bet88 net industrial structure experienced positive shifts towards modernization during bet88 net year, leveraging advanced technologies, enhancing value-added production, and fostering sustainable growth. bet88 net proportion of bet88 net manufacturing and processing industry, a key indicator of industrial progress, rose significantly, to 24.1 per cent, meeting bet88 net targets set under Government Resolution No. 01. Conversely, bet88 net share of mining industries declined. Manufacturing and processing now serve as bet88 net growth engine for both bet88 net industrial sector and bet88 net broader economy after exhibiting strong growth.

Core industrial sectors continued to thrive, including oil and gas extraction, mining, electricity, electronics, telecommunications, information technology, metallurgy, steel, cement, building materials, textiles, footwear, mechanical engineering, automotive, and motorcycles. These industries provide a solid foundation for long-term growth and play a critical role in bet88 net country’s industrialization and modernization process.

Several export-driven industries, such as textiles, footwear, and electronics, have successfully integrated into global value chains, gaining greater competitiveness and securing a strong position in international markets. Many products from these three industries have earned top rankings in export value, both regionally and globally. Fundamental industries, such as steel, chemicals, and mechanical manufacturing, have gradually met bet88 net demand for materials and production capacity within bet88 net economy. Additionally, bet88 net defense industry has begun contributing to bet88 net national industrial sector and supporting socio-economic development. Support industries and component production are beginning to take shape, enhancing localization rates and value-added content, while facilitating deeper integration into global manufacturing networks.

Importantly, many localities have made significant efforts to overcome bet88 net challenges, revive production, and maintain strong industrial performance. bet88 net IIP has risen in 60 of Vietnam’s 63 centrally-run cities and provinces, with key industrial areas recovering rapidly and sustaining positive growth. Notable examples in bet88 net first eleven months of 2024 include Bac Giang province (27.7 per cent), Vinh Phuc province (11.1 per cent), Hai Phong city (15.3 per cent), and Hai Duong province (13.9 per cent) in bet88 net north, Thanh Hoa (19.2 per cent) in bet88 net north-central region, Quang Nam (18.6 per cent) in bet88 net central region, and Ho Chi Minh City (7.1 per cent), Binh Duong province (6.8 per cent), and Dong Nai province (8 per cent) in bet88 net south.

Despite these positive developments, Deputy Minister of Industry and Trade Phan Thi Thang pointed out that industrial enterprises still face several challenges, such as limited access to capital, even with falling interest rates. Rising costs for imported raw materials and a high USD exchange rate have diminished bet88 net competitiveness of many export products. Furthermore, bet88 net domestic production sector remains largely reliant upon imported materials.

There is also still limited business collaboration both within industries and across sectors. bet88 net low level of links between FDI enterprises and domestic companies has hindered bet88 net development of management skills, technology transfer, and bet88 net creation of material supply chains and industry clusters. Domestic companies have yet to significantly increase their participation in global production and supply chains.

Striving for greater goals

2025 holds special significance, as it marks bet88 net final year of bet88 net 2021-2025 Socio-economic Development Plan, setting bet88 net foundation for Vietnam to confidently enter a new era of prosperity and growth. Following bet88 net government’s recent directive, bet88 net Prime Minister has set an ambitious GDP growth target of 8 per cent for bet88 net new year. bet88 net MoIT has proposed raising growth targets in bet88 net industrial and trade sectors for 2025, to be incorporated into Government Resolution No. 01/NQ-CP, which was issued on January 8, 2025, outlining key tasks and solutions for implementing bet88 net socio-economic development plan and State budget for 2025. Specifically, bet88 net IIP is to grow 9-10 per cent compared to 2024.

However, achieving this target remains challenging. As Deputy Minister Thang noted, despite bet88 net positive developments, 2025 will continue to present numerous challenges for both bet88 net economy and bet88 net industrial sector, including bet88 net incomplete recovery of industrial production and slower growth in bet88 net domestic market.

To meet and exceed bet88 net industry’s targets for 2025, bet88 net MoIT will focus on four core solutions.

First,it will continue to deepen its understanding and ensure bet88 net effective implementation of Party policies, National Assembly (NA) resolutions, and government directives. An urgent action plan will be developed, and tasks outlined in Government Resolution No. 01 will be executed from bet88 net start of bet88 net year, contributing to bet88 net successful implementation of national programs and objectives.

Second, institutional and policy development will remain a key priority. bet88 net ministry will fast-track bet88 net implementation of bet88 net amended Law on Electricity and other major policies approved by bet88 net NA, including bet88 net restart of bet88 net Ninh Thuan nuclear power projects. bet88 net MoIT will also finalize legal documents, to be submitted to bet88 net Government for promulgation, to guide bet88 net implementation of bet88 net amended Law on Electricity, complete a draft Law on Chemicals for NA approval, and propose legislation on Key Industrial Development and Efficient Energy Use in 2025.

Focus will also be placed on refining State management mechanisms for industrial development, minimizing overlaps, ensuring stability, and fostering a favorable environment for industrial investment. Policies will be enhanced to attract both domestic and foreign investments, with an emphasis on drawing large multinational corporations into critical national projects.

Third, bet88 net ministry will work to improve bet88 net efficiency and competitiveness of industrial enterprises. bet88 net focus will be on continuing bet88 net restructuring of bet88 net industrial sector, State-owned enterprises (SOEs), and economic groups in line with approved plans. Efforts will be made to create mechanisms that support bet88 net growth of industrial companies, particularly those in bet88 net support industries. bet88 net MoIT will also facilitate stronger links between Vietnamese industrial businesses and foreign partners to boost investment and collaboration.

And fourth, bet88 net ministry will actively provide advice on reviewing policies related to international economic integration, with a particular emphasis on attracting FDI in bet88 net industrial and trade sectors. Solutions will be proposed to encourage foreign companies to support and collaborate with domestic businesses, fostering technology transfer, developing management skills, and establishing supply chains that will enhance bet88 net competitiveness of Vietnamese companies and enable them to integrate into global production and supply networks.