Hai Phong aims for sustainable industrial growth
Hai Phong needs to shift from a ‘fast growth’ mindset to ‘steady growth,’ while maintaining its determination to create breakthroughs and ensure long-term resilience in industrial development.
According to the October 2025 report of the Hai Phong Department of Industry and Trade, the city’s index of industrial production (IIP) increased by 12.78% year-on-year, lower than the projected growth scenario of around 20%. Over the first ten months, the IIP rose by 15.02%, close to the year’s target of 16.8% but still short of the expected breakthrough.
In reality, Hai Phong’s industrial growth is encountering several bottlenecks arising from both external factors and internal economic conditions.
First, the impact of the global market is creating considerable pressure. The US’s reciprocal tariffs of 10 – 41% on several import categories, with products from Vietnam subject to a 20% tariff and goods transshipped through Vietnam up to 40%, have significantly affected supply chains.
FDI enterprises in Hai Phong, the main driver of industrial growth, had to adjust production plans and even slow output in certain products exported to the US.
Meanwhile, declining global consumer demand and rising logistics costs continue to pressure production in traditional export sectors.
Internal growth remains uneven. New growth drivers have yet to take shape clearly. Some newly launched industrial projects are still in their initial phases, with output not reaching designed capacity, and their contributions remain limited. Although infrastructure in industrial parks and clusters is improving, more time is needed to synchronize logistics, supporting services and a skilled technical workforce.
Additionally, the capabilities of domestic supporting industry enterprises remain modest, and their level of participation in the supply chains of major FDI corporations remains below potential.
Given this situation, Hai Phong must create new growth space instead of relying solely on expanding FDI production. The city has many favorable conditions to shift strongly toward a growth model based on productivity, high technology and greater added value, particularly in electronics, components and industrial equipment.
However, to achieve this, investment priorities must be reallocated, logistics infrastructure improved, supporting industries strengthened and linkages between domestic enterprises and major investors enhanced.
At the same time, diversifying export markets has become essential. Reducing dependence on high-risk markets, proactively meeting technical–quality standards and better utilizing free trade agreements will help businesses improve resilience amid global fluctuations. This is crucial for Hai Phong to avoid passively reacting to policy changes from major import markets.
The IIP falling short of projections is not a negative signal, but an important reminder of the need for durability in industrial growth in the coming period. Hai Phong must shift from “fast growth” to “steady growth,” while still maintaining its ambition for breakthroughs.
As key industrial projects are completed, new infrastructure comes into operation and new growth drivers are nurtured in the right direction, the city can narrow the gap between targets and reality, continuing to consolidate its position as a leading national industrial and logistics center.
LE HIEP