Vietnam’s industrial production index rose by 0.8 percent in December 2024 compared to November 2024, according to Vietnam’s Industrial Production Index.
Year-on-year, the index saw a significant increase of 8.8 percent in December 2024 compared to December 2023. For the entire year of 2024, cumulative growth stood at 8.4 percent compared to 2023, showcasing robust industrial performance throughout the year.
The consistent growth reflects heightened production activity across key sectors such as manufacturing and energy. December’s month-on-month rise likely signals intensified efforts to meet increasing demand with the lunar new year break to begin at the end of January.
Vietnam’s industrial sector continues to play a vital role in the economy, supported by government policies, growing foreign investments, and improvements in infrastructure.
The steady year-on-year and year-to-date growth underline Vietnam’s expanding industrial capacity and its importance in the global supply chain.
Of note, manufacturing in Vietnam is a cornerstone of the country’s economic development, contributing significantly to GDP, employment, and exports. The sector has diversified in recent decades, transitioning from traditional industries like textiles and garments to higher-value industries such as electronics, automotive components, and machinery. Vietnam’s competitive labour costs, strategic location near major shipping routes, and participation in free trade agreements have made it a popular destination for foreign direct investment, particularly from multinational corporations seeking to optimise their supply chains.
Moreover, the sector plays a crucial role in Vietnam’s export-driven economy, with manufactured goods making up a large share of the country’s total exports. Key hubs such as Ho Chi Minh City, Hanoi, and industrial zones in the northern and southern regions host a mix of domestic and international manufacturers. Efforts to enhance infrastructure, improve workforce skills, and adopt more advanced technologies are ongoing, as Vietnam looks to increase productivity and move further up the global value chain in manufacturing.
See also: Manufacturing in Vietnam