Industrial processing and manufacturing drive economic growth
According to the Q2 and six-month socio-economic report released by the General Statistics Office (Ministry of Finance), Vietnam’s Index of industrial production index showed further improvement in the second quarter and the first half of 2026.
Positive signals
The GSO estimates that industrial production in Q2/2026 rose 11.2% year-on-year. Processing and manufacturing increased by 11.3%; electricity generation and distribution rose 12.4%; water supply, waste and wastewater management increased 10.3%; and mining grew 7.0%.
Key industrial products posted strong gains: motorbikes up 32.9%, automobiles up 26.9%, rolled steel up 23.3%, processed seafood up 21.6%, refined sugar up 16.8%, beer up 14.4%, chemical paints up 14%, and crude oil extraction up 13.1%. By contrast, NPK fertilizer, clean coal and leather footwear recorded declines year-on-year.
Market trends also point to stronger demand. Consumption in the processing and manufacturing sector rose 10.8% in the first six months, outpacing the same period in 2025. Average inventory ratios fell to 82.2% from 85.7% a year earlier, indicating smoother sales and improved production turnover.
The labour market showed a positive trend, with the number of employees in industrial enterprises up 3.1% year-on-year. The processing and manufacturing sector alone registered a 3.2% increase, reflecting firms’ confidence in expanding output.
Laying the foundation for sustained high growth
The six-month industrial growth rate in 2026, the highest since 2019, not only signals a robust recovery of the production sector but also provides an important foundation for Vietnam to sustain strong economic growth throughout 2026.
With processing and manufacturing continuing to lead, together with improvements in consumption, labor and production capacity, the industrial sector is expected to remain a key driver supporting the country’s growth this year.
Hai Phong News