Ho Chi Minh City's manufacturing Industrial Production Index (IIP) rose by 10% during the first seven months of the year, the highest since 2021, according to data from the city's Statistics Office. This marks a significant rebound since the Covid-19 pandemic.
The Statistics Office identifies manufacturing as the "main driver of industrial growth" for the economic hub.
During the same period, the water supply and waste treatment sector remained stable, supporting the growth of the manufacturing industry with a 3.8% increase. Meanwhile, the mining and electricity production and distribution sectors reached only 92.5% and 59.4% of their performance compared to the same period last year.
Within manufacturing, several sectors experienced double-digit growth, including printing, wood processing and manufacturing, electrical equipment, and apparel. This growth contributed to a 5.6% increase in the city's export turnover over the past seven months.
Since 1/7, following the merger with Binh Duong and Ba Ria - Vung Tau, Ho Chi Minh City has become an industrial center with three key sectors: high-tech industry, manufacturing, and energy. According to the Statistics Office, the city's industrial structure has become more diverse, with production centers spread wider and production capacity increasing.
Overall, in the first seven months, Ho Chi Minh City's IIP increased by 5.4% year-on-year, the highest in three years. Employment also rose by 3.9%, with sectors like vehicle manufacturing, electronics, wood processing, and food processing expanding their workforce. Recruitment trends show a shift from unskilled to skilled labor, especially in foreign direct investment (FDI) enterprises. The application of technology and automation in production contributes to reducing labor shortages.
In addition to industrial production, total retail sales of goods and consumer service revenue increased by 15.5% compared to the same period in 2024. FDI attraction also increased by 32.2%, reaching over 4.7 billion USD. Furthermore, as of 9/7, the city disbursed 31% of its annual public investment plan, over 47,300 billion VND.
Despite these positive developments, the business environment hasn't fully recovered. The number and registered capital of newly established businesses decreased by 21.4% and 43.3%, respectively.
Vien Thong
