AsemconnectVietnam - After a turbulent period in the global economy, 2025 marks a significant shift for Vietnam's industrial production from a "defensive" state to a "proactive recovery."

Despite still facing numerous challenges from input costs, localized supply chain disruptions, and international competition pressure, the overall picture shows that the manufacturing sector has regained stable growth and market confidence.
Business practices indicate that demand in infrastructure, energy, automation, and industrial production is returning.
At the macro level, indicators also reflect a positive trend. The Purchasing Managers' Index (PMI) for Vietnam's manufacturing sector, published by S&P Global, showed that the PMI for December of 2025 reached 53.0 points – remaining above 50 points for the eighth consecutive month. Output, new orders, and employment all increased, indicating a significant improvement in the health of the manufacturing sector in the second half of the year.
Although the growth rate slowed somewhat compared to previous months, it is important to note that the growth momentum remained stable, reflecting a genuine, not just short-term, recovery in market demand.
However, the recovery picture is not entirely rosy. The lingering effects of natural disasters, material shortages, extended delivery times, and rapidly rising input costs remain major obstacles for manufacturing businesses.
According to S&P Global, input costs in December 2025 increased at the fastest rate in three and a half years, forcing many businesses to adjust their selling prices. Nevertheless, unlike previous periods, businesses have been more proactive in risk management, increasing raw material inventories and expanding purchasing activities to meet new orders.
Foundation for a new growth cycle
The positive signals of 2025 are laying an important foundation for 2026 and the 2026-2030 period. According to the Ministry of Industry and Trade, in 2025, industry will grow by approximately 9.5%, with the processing and manufacturing sector growing by over 10.6% - the highest rate since the pandemic.
Entering 2026, the Ministry of Industry and Trade aims for an industrial production index (IIP) growth of over 10%, focusing on removing obstacles, expanding markets for key industries, and enhancing domestic production capacity.
At the strategic level, the orientation towards industrialization and modernization is also emphasized in depth. At the Industry and Trade sector's summary conference held on the afternoon of December 19th, Prime Minister Pham Minh Chinh requested the industry and trade sector to be a pioneer in industrialization and modernization.
CK
Source: VITIC/congthuong.vn