Boosting industrial production, creating momentum for double-digit economic development

The processed industrial goods group accounts for 88.4% of export turnover in the first quarter of 2025.

The index of industrial production (IIP) in the first quarter of 2025 is estimated to increase by 7.8% over the same period last year, of which the processing and manufacturing industry increased by 9.5%, continuing to be the driving force of economic growth. For a production sector mainly for export, in the context of many unfavorable impacts on the world market, the above results are very remarkable.

However, to achieve the "double-digit" growth required by 2025 requires great efforts to promote industries, especially the processing and manufacturing industry.

Delegate growth tasks to each locality

According to the report of the National Statistical Office, the industrial production index in the first quarter of 2025 compared to the same period last year increased in 59 localities and decreased in 04 localities nationwide. Notably, the high GRDP growth of the provinces was mainly due to the growth of the processing and manufacturing industry, which was the real driving force for growth.

In the export growth data, the processed industrial goods group reached 90.92 billion USD, accounting for 88.4% of export turnover in the first quarter of the year, further demonstrating the role of industry in economic growth.

Dr. Nguyen Quoc Viet, public policy expert, University of Economics - Vietnam National University, Hanoi, said that the industrial sector, especially the processing and manufacturing industry, achieved a relatively high growth rate in the first quarter. In addition, the industrial production index increased in 59/63 localities, which is also an indicator worth paying attention to, because this year is the first year that growth tasks/KPI on growth have been assigned to each locality.

“The increase in the industrial production index is also expected to boost private investment, create jobs and income, thereby supporting the growth of the domestic consumption and service sectors,” said Dr. Nguyen Quoc Viet.

As one of the top export industries in the country, textile and garment enterprises also achieved many positive results in the first quarter of the year. A representative of the Vietnam National Textile and Garment Group (Vinatex) informed that in the first quarter of the year, Vinatex's consolidated revenue was estimated at VND 4,417 billion, up 6.1% over the same period; consolidated profit was estimated at VND 271 billion, up 165.5% over the same period in 2024.

To achieve such growth, in the first 3 months of the year, many enterprises in the fiber industry have cut losses and made profits. Along with that, all units in the garment industry have had good production and business results.

“Many garment enterprises have received enough orders until the end of the second quarter of 2025 and are negotiating for the third quarter of 2025. However, in the first quarter, orders tend to speed up delivery to limit the impact, if any, of the US tariff policy,” said a representative of Vinatex.

Industrial production index in the first quarter of 2025 compared to the same period last year increased in 59 localities.

Unblocking the market

Although the first quarter of the year achieved many positive results, in the second quarter of 2025, industries also need to solve many problems and challenges ahead, including releasing a significant amount of inventory.

Statistics show that the inventory index of the entire processing and manufacturing industry as of March 31, 2025 is estimated to increase by 5.9% compared to the same period last month and by 15.1% compared to the same period last year (the same period last year increased by 14.1%). The average inventory ratio of the entire processing and manufacturing industry in the first quarter of 2025 is 90.0% (the average in the first quarter of 2024 is 68.7%).

To promote industrial development, contributing to the realization of the economic growth target of at least 8% this year for the whole country, the Ministry of Industry and Trade said it will continue to focus on effectively implementing the tasks assigned in Resolution No. 01 and 02 of the Government as well as Resolution No. 25 of the Government (dated February 5, 2025) on assigning industrial-commercial production growth targets to each industry, each field, and each locality.

Mr. Bui Huy Son, Director of the Department of Financial Planning and Enterprise Management (Ministry of Industry and Trade) emphasized the solutions to promote industrial production associated with focusing on removing obstacles of key industrial and energy projects. At the same time, the Ministry of Industry and Trade also actively coordinates with ministries and branches to implement solutions to encourage enterprises to expand investment, calling on large corporations and multinational corporations to invest in key national projects.

“The authorities are urgently implementing major infrastructure projects on national railways and national highways, including contributions from the industrial sector to meet the requirements of technology, manufacturing, and materials for these projects. To meet the requirements of industrial production growth, ensuring energy is always a top priority,” said Mr. Bui Huy Son.

In the context of the export market becoming more and more difficult due to increasingly strict standards and high taxes imposed to protect domestic production by many countries, experts say that processing and manufacturing enterprises, especially mechanical and supporting industry enterprises, should pay attention to the domestic market, with many fields where we can have orders for production and development.

Ms. Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Association of Supporting Industries, proposed that according to Power Plan 8 and later, Vietnam's electricity development strategy depends heavily on renewable energy, so it is necessary to start participating from the beginning, and at the same time, a long-term localization policy is needed for businesses, including FDI, to promote the consumption of domestically produced components and spare parts.

Businesses meet high standards to promote exports.

"If we have a strategy from the beginning and a clear localization plan, all parties will be prepared, and if there is preparation, Vietnamese enterprises can certainly participate in the supply chain of this renewable energy sector," Ms. Binh recommended.

To sustainably develop the industry in a green production, digital economy, circular economy, with high added value, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the Ministry is promoting programs to support industrial enterprises in digital transformation; investing in smart factories, automating production lines; programs on deploying smart grids, encouraging enterprises to invest in renewable energy...

Furthermore, digital transformation in production is a key factor to improve competitiveness, so the Ministry of Industry and Trade is submitting to the Government for approval a Program to support enterprises in applying 4.0 technology through digital transformation to develop smart production, while focusing on policies to encourage enterprises to invest in smart factories, automated production and apply IoT, AI, and big data to improve efficiency.

According to vietnamplus.vn

Source: https://baolaocai.vn/day-manh-san-xuat-cong-nghiep-tao-dong-luc-cho-phat-trien-kinh-te-2-con-so-post400277.html