AsemconnectVietnam - In the first six months of 2026, industrial production recorded an impressive growth rate of 10.8%, the highest since 2019.

The manufacturing sector continued to assert its leading role with a growth rate of 11.4%. This result, along with the strong inflow of FDI, will create momentum for Vietnam's industrial sector to break through in the coming period.
According to the General Statistics Office, the Industrial Production Index (IIP) reached a growth rate of 10.8%, the highest since 2019. The manufacturing sector continued to assert its role as the main growth driver with a breakthrough growth rate of 11.4%.
This recovery stems not only from strong domestic consumer demand but also from a revamped supply chain and the stability of export markets. Many key industries, such as metal production, motor vehicles, and beverages, have recorded impressive double-digit growth, reflecting a strong return of consumer confidence. Supporting sectors like chemicals and construction materials have also accelerated in line with the development of major infrastructure projects.
A solid foundation for this breakthrough is the strong inflow of foreign direct investment (FDI) into the processing and manufacturing sector. By the end of June, this sector had attracted over US$10.7 billion in newly registered capital, accounting for nearly 62% of the country's total. Notably, implemented FDI reached its highest level in the past five years at over US$13 billion, indicating that projects have quickly become operational.
The consumption increased significantly compared to the same period last year, leading to a substantial reduction in inventory levels. This demonstrates that businesses have optimized their processes, producing based on actual market demand and freeing up working capital.
The labor market in industrial enterprises also recorded optimistic developments with a 3.1% increase in the number of workers, especially in the FDI sector. This increase not only helps meet new orders but also plays an important role in supporting social stability. The business trend survey results show a high level of optimism, with the vast majority of businesses forecasting that production in the third quarter of 2026 will continue to maintain its growth momentum or become even more stable.
In addition, the Purchasing Managers' Index (PMI) in June reached 51.8 points, marking a continuous improvement in business conditions. A positive sign is that inflationary pressure has shown signs of easing as input costs and output prices have slowed down, helping businesses reduce their financial burden and increase competitiveness.
Despite some remaining challenges such as localized labor shortages in certain sectors due to automation trends and global geopolitical uncertainties, Vietnam's industrial sector generally possesses a solid foundation. With the "three pillars" of high IIP growth, strong realized FDI inflows, and a stable PMI index, the economy has every reason to expect even stronger growth in the second half of 2026.
CK
Source: VITIC/vneconomy.vn