AsemconnectVietnam - Vietnam’s industrial production rose by 12.3% in the first nine months of 2026, the highest rate for this period since 2019, with the manufacturing sector playing the leading role.

In the fourth quarter, it is essential to address challenges and boost production to meet full-year targets.
Industrial production increased by 12.3% in nine months, highest since 2019
According to the Ministry of Industry and Trade, industrial production grew by 12.3% in the first nine months of 2026, marking the highest rate for the period since 2019, with manufacturing continuing to serve as the primary growth engine. However, growth remains uneven, and many localities have yet to meet their targets; this necessitates maintaining production momentum and resolving bottlenecks in the fourth quarter to achieve the annual plan.
Mr. Pham Van Quan, Deputy Director of the Department of Industry, noted that alongside the 12.3% rise in the industrial production index, the electricity generation and distribution sector grew by 10.6%. This relatively synchronized growth between industrial production and the power sector indicates that this year's economic growth is more closely linked to production activities, particularly manufacturing. "Through engagement with local authorities, the Department of Industry has observed that localities such as Ha Tinh, Phu Tho, and Bac Ninh have met or exceeded their industrial growth targets for 2026. These results stem from the contributions of newly operational projects and capacity expansions, as well as local efforts to improve the investment and business environment and accelerate administrative procedure reforms," Mr. Quan stated.
Assessing industrial production in the third quarter of 2026, Ms. Phi Thi Huong Nga, Head of the Department of Industrial and Construction Statistics (General Statistics Office), noted that the industrial sector's performance over the first nine months reflects positive trends. Specifically, the growth was widespread across the entire economic landscape and all Tier-1 industrial sectors.
All 34 provinces and cities nationwide maintained positive growth rates in their Industrial Production Index (IIP) during this period. Alongside major FDI hubs such as Thai Nguyen (+23.2%), Bac Ninh (+20.2%), Hai Phong (+15.2%), and Hai Phong (+15.2%), strong growth momentum was also recorded in localities developing domestic industries, energy infrastructure, and materials, such as Ha Tinh (+40.2%), Ninh Binh (+25.0%), Nghe An (+21.5%), Phu Tho (+21.5%), and Quang Ninh (+18.6%).
Nationwide, all four Tier-1 industrial sectors posted positive growth; notably, the processing and manufacturing sector, which accounts for the largest share of the overall industry, grew by 12.9%, continuing to serve as the primary driver.
Taking Hanoi as an example, the city's Industrial Production Index rose by 9.9% in September 2026 compared to the same month the previous year. Over the nine-month period, the IIP increased by 9% year-on-year. This growth demonstrates that the Capital's manufacturing sector has maintained its momentum despite a volatile international business environment. Significantly, the processing and manufacturing sector remained the key driver, with Hanoi's industrial production index for this sector rising by 8.9% year-on-year during the nine-month period. The fact that many enterprises are maintaining stable orders for the domestic market while simultaneously securing large export orders has helped drive the entire industry forward.
Six solutions to sustain growth momentum
According to the Department of Industry (Ministry of Industry and Trade), while industrial production increased across all 34 surveyed localities, there was significant variation in performance, with some areas failing to meet their established industrial growth targets. Through surveys and field visits, the Department identified three main groups of issues affecting these results.
The first group consists of localities with industrial structures heavily reliant on mining or electricity generation. Operations in these sectors are significantly influenced by weather conditions, hydrological factors, resource reserves, and capacity utilization capabilities, making it difficult to boost output in the short term.
The second group comprises localities with a high concentration of labor-intensive manufacturing industries. Recent geopolitical fluctuations, coupled with rising logistics costs and input material prices, have impacted production activities and prevented growth results from meeting expectations.
The third group includes localities where production relies heavily on foreign markets. Fluctuations in demand, orders, and trade policies within export markets have directly affected business operations and local industrial growth.
Recently, the Ministry of Industry and Trade has organized numerous working delegations to localities such as Ho Chi Minh City, Quang Ninh, Can Tho, Dak Lak, and Ca Mau to foster industrial development in these areas. The outcomes of these activities have helped guide efforts to resolve difficulties and obstacles hindering industrial development, and the broader industry and trade sector, in many key localities. In reality, given the increasingly high demands for economic growth, the fact that industrial production has maintained double-digit growth rates not only contributes significantly to the province's overall economic expansion but also demonstrates the effectiveness of a development strategy focused on modernization, selectivity, and sustainability. This success creates a foundation for further expanding growth potential, enhancing competitiveness, and achieving socio-economic development goals in the coming period.
The Department of Industry has proposed six solutions designed to yield immediate results during the fourth quarter of 2026 and the remainder of the year:
First, actively engage with and support enterprises and localities to accelerate growth in industrial sectors with strong potential, while capitalizing on market opportunities arising from the major shopping season in key markets during the final three months of the year.
Second, stimulate domestic demand for industrial products.
Third, rapidly bring new production capacity online. Coordinate with ministries, agencies, and local authorities to definitively resolve procedural hurdles, such as those related to construction, fire safety, environmental compliance, and grid connections, for projects that have completed investment, are in trial operation, or are undergoing capacity expansion (prioritizing sectors such as metals, hot-rolled steel, automobiles and components, electrical and electronic equipment, mechanical engineering, and supporting industries).
Fourth, ensure the availability of production inputs; specifically, guarantee a stable power supply for industrial zones and key projects.
Fifth, continue to provide targeted support to localities experiencing low growth rates. Engage with localities recording an Index of Industrial Production (IIP) growth of less than 13%, prioritizing major urban centers (Hanoi, Ho Chi Minh City, Da Nang) and areas reliant on hydropower and minerals or possessing a limited manufacturing base (such as Lai Chau, Lao Cai, Lang Son, Khanh Hoa, Gia Lai, and Hue) to identify enterprises and projects capable of boosting output immediately in the fourth quarter.
Sixth, leverage the roles of lead enterprises and the supporting industry. Work with lead FDI corporations (in electronics, automobiles, and motorcycles) to understand their fourth-quarter production plans and resolve bottlenecks regarding labor, customs, and electricity supply; facilitate the integration of domestic supporting industry enterprises into supply chains to increase orders for local businesses within the fourth quarter.
Source: VITIC/congthuong.vn