Vietnam's economic growth (GDP) reached 7.52% in the first half of 2025, the highest first-half growth rate since 2011. According to statistics, 42 localities, before the merger, exceeded the national average, with 30 provinces and cities recording GRDP growth of over 8%.

The top 10 provinces and cities with growth exceeding 10% included Bac Giang, Quang Ngai, Da Nang, Hai Phong, and Quang Ninh. Most of these are northern provinces with strong industrial production.

Bac Giang, home to many large industrial zones in northern Vietnam, continued to lead the country in economic growth, maintaining double-digit GRDP growth for the past 5 years.

The province's main driver remained the industry and construction sector, contributing 17.5% to growth in the first half of the year. The manufacturing sector accounted for nearly 60% of the province's GRDP, growing by 18.35%. The service sector also saw positive recovery, with growth exceeding 7%.

Industrial production also propelled Quang Ngai to second place in terms of growth rate, up from 26th place in Quarter I. The province's GRDP reached 12.4% in the first 6 months, the highest in the same period in 5 years. Industry contributed 7.31 percentage points, continuing to demonstrate its role as the locality's key economic sector. "The industrial breakthrough is mainly due to the 'dual wings' of oil and steel," explained Quang Ngai's statistical agency.

The Dung Quat Oil Refinery and the Hoa Phat Dung Quat Steel Complex have been significant contributors to Quang Ngai's revenue for many years. In the first half of this year, Hoa Phat Dung Quat operated at 100% capacity, with output increasing by 25% year-on-year. Meanwhile, the Dung Quat Oil Refinery closed the first 6 months with output exceeding its target by 16%.

Other sectors, such as garment and metal production, electricity production and distribution, and wastewater treatment, also contributed positively to Quang Ngai's economy in the first half of the year.

The service and real estate sectors also contributed to Quang Ngai's growth. Specifically, the service sector contributed 2.48 percentage points to the province's GRDP growth rate.

According to a report by Quang Ngai's Statistical Office, revenue from tours increased significantly due to many agencies and units organizing tours for officials, civil servants, and workers before the administrative merger. Similarly, the real estate business became active from the end of March, fueled by news of the merger plan and the administrative center being located in Quang Ngai province.

In addition, increased production and income among residents led to higher demand for goods and services, boosting revenue in the service sectors compared to the same period last year.

Dung Quat Oil Refinery, Quang Ngai. Photo: BSR

Dung Quat Oil Refinery, Quang Ngai. Photo: BSR

Similar to the top two localities, Nam Dinh and Hai Duong also recorded double-digit GRDP growth thanks to the manufacturing sector, which accounts for a large proportion of their economies and experienced high growth. Nam Dinh's GRDP reached an estimated 12%, with manufacturing contributing 22.12% to the increase.

Hai Duong's GRDP reached an estimated 11.49%, exceeding its target, also thanks to the manufacturing sector, which contributed nearly half of the growth, increasing by 18.52% in the first half of the year.

Da Nang's economy ranked 4th, reaching 11.36% growth, leading among centrally-affiliated cities, surpassing Hanoi, Ho Chi Minh City, Hai Phong, and Can Tho. It was the only locality in the top 5 whose main growth driver was tourism, its key economic sector, accounting for almost 71% of the city's economic structure.

In the first 6 months, Da Nang welcomed nearly 4 million overnight visitors, half of whom were international tourists, an increase of 18% over the same period last year. One reason tourists chose this central coastal city as a destination was the large-scale events held there. According to data from Da Nang's Department of Culture, Sports, and Tourism, during the month of the International Fireworks Festival qualifying round (31/5-30/6), the city welcomed about 1.17 million tourists, with approximately 400,000 visitors during the first 5 nights alone.

Ho Chi Minh City and Hanoi were not among the top 30 fastest-growing localities. However, these leading localities still made significant contributions to the national economy in the first half of the year.

Ho Chi Minh City led in its contribution to the national GDP, with 17.78%. The city's GRDP increased by 7.82% in the first half of the year, lower than the target but the highest increase in the same period since 2020.

With a similar economic structure to Ho Chi Minh City, Hanoi's services sector continued to be the main driver, helping its economic growth reach 7.63%. As a result, the capital contributed nearly 13% to the GDP of the 63 provinces and cities.

Hai Phong set a growth target of 11.97% for the first 6 months and 12.5% for the whole year. In the first 6 months, the city's GRDP increased by 11.04%, lower than the target. According to a report by Hai Phong's Statistical Office, one reason for this was the complex global situation, particularly US tax policies and the reactions of other countries, which impacted industrial production, the main contributor to the city's GRDP.

Hai Phong's industrial production index (IIP) is estimated to have increased by 15.01% year-on-year. Some sectors, such as mining, manufacturing, and electricity distribution, saw declines.

From 1/7, Vietnam reorganized its administrative boundaries, reducing the number of provinces and cities from 63 to 34. Along with this, two-level government (province and commune/ward) was also implemented. The statistical agency will publish GRDP data for the 34 centrally-affiliated provinces and cities after the administrative boundary adjustments, starting from Quarter III.

With the 34-locality model, according to calculations by the Ministry of Finance, 17 provinces and cities after the merger achieved growth rates of over 8% in the first half of the year. Six (new) provinces and cities had double-digit GRDP growth: Quang Ngai, Hai Phong, Quang Ninh, Ninh Binh, and Phu Tho.

Under the new administrative structure, the GRDP rankings of some localities improved, while others declined. For example, after merging with Binh Duong and Ba Ria - Vung Tau, Ho Chi Minh City's GRDP growth rate would be only 6.56%.

To promote growth and accurately assess the situation of localities after the merger, the Ministry of Finance plans to work with provinces and cities to submit to the Government a proposal to adjust Resolution 25 on assigning 2025 GRDP targets for the 34 localities after the merger.

Phuong Dung