Vietnam Manufacturing Tracker: As of November 2025

matslind
Nov 24
9 min read

The manufacturing sector is the cornerstone of Vietnam’s economic growth and resilience. The government has undertaken several initiatives to leverage the country’s inherent strengths, resulting in tangible outcomes supported by compelling data. The Vietnam Manufacturing Tracker by Vietnam Briefing offers the latest data, insights, and policy updates to keep foreign investors and analysts informed about the industry.

Over the past few decades, Vietnam has effectively leveraged its key advantages to become a major player in global supply chains, with its role gaining even more prominence amid the “China Plus One” production relocation strategy.

This growing importance is primarily driven by Vietnam’s labor-intensive manufacturing sector, characterized by relatively low labor costs, well-developed export infrastructure, and a strategic location on major trade routes.

The Vietnamese government has been proactive at both national and provincial levels, implementing measures such as national schemes, generous corporate income tax breaks for high-tech companies, and the development of specialized industrial zones.

Vietnam’s economic growth outlook

According to Vietnam’s General Statistics Office (GSO), the country’s Gross Domestic Product (GDP) grew exponentially by 7.85 percent in the first three quarters of 2025, resulting in upbeat growth projections by credible financial institutions.

The Asian Development Bank (ADB) has increased its 2025 GDP forecast for Vietnam from 6.6 percent to 6.7 percent, anticipating a possible slowdown to six percent in 2026. Similarly, United Overseas Bank (UOB) has raised its 2025 estimate for Vietnam to 7.7 percent, citing ongoing recovery in manufacturing and exports as key growth factors.

On May 5, 2025, Vietnam’s Prime Minister Pham Minh Chinh announced that the country’s GDP growth rate is targeted to reach 8 percent or more this year, higher than the 7.09 percent rate in 2024. The country also aims to achieve a GDP per capita of US$5,000 this year and grow its national economy to over US$500 billion in size.

To achieve this goal, Vietnam will need to maintain its stable performance throughout the rest of this year, amid rapidly changing trade dynamics, mostly driven by US tariff pressures, which are expected to influence the global supply chain realignment.

GDP and the value added by the manufacturing sector

The GSO reported that the industrial sector’s value-added contribution to GDP in the first nine months of 2025 increased by 9.92 percent year-over-year, contributing 31.73 percent to the economy’s overall growth rate.

Vietnam Manufacturing Purchasing Managers’ Index (PMI)

The S&P Global Manufacturing PMI reflects the manufacturing sector’s performance by surveying 400 firms in the industry. The PMI is built on five weighted sub-indexes:

New orders (30 percent)
Output (25 percent)
Employment (20 percent)
Suppliers’ delivery times (15 percent)
Stock of items purchased (10 percent)

A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month, below 50 represents a contraction, while 50 indicates no change.

Interpreting the PMI scores

Entering the last quarter of 2025, Vietnam’s manufacturing sector has regained its growth momentum, as indicated by a notable PMI reading of 54.5 points in October, up from 50.4 in September. The upward movement was driven by the positive growth in all five constituent parts of the headline PMI.

New orders grew for the second straight month, and at a significantly faster rate than in September. Export orders contributed to the overall increase in new business, rising slightly for the first time in a year. Manufacturers responded to the higher new orders by increasing production, which grew at the fastest pace since July 2024. Output has now increased each month for the past six months.

Business sentiment improved to a 16-month high, supported by confidence that new orders will keep rising and plans to expand production capacity. This rise in new orders and the related need for higher output also led to an increase in employment in October, the first in over a year.

Highlights from Vietnam’s PMI in October 2025:

Sharp and accelerated increases in output and new orders;
Renewed rises in employment and stocks of purchases; and
Selling price inflation has been the fastest since June 2022.

Index of Industrial Production (IIP)

The IIP is an indicator that evaluates the growth rate of industrial production monthly, quarterly, or yearly. It reflects industrial production growth in general and the growth rate of each commodity in particular.

The IIP is calculated as a percentage of the industrial production generated in the current and base periods.

Index of Industrial Production (IIP)

The IIP is calculated as a percentage of the industrial production generated in the current and base periods.

Interpreting the IIP scores

In the first 10 months of 2025, Vietnam’s IIP increased by 9.2 percent compared to the same period last year. Sector-specific performance of Vietnam’s IIP in the first 10 months of 2025 is as follows:

Manufacturing and processing industry increased by 10.5 percent, contributing 8.5 percentage points to the overall increase;
Electricity, gas, steam, and air conditioning supply rose by 6.8 percent, contributing 0.6 percentage points;
Water supply, sewage, waste management, and remediation grew by 10.4 percent, contributing 0.1 percentage points; and
Mining and quarrying decreased by 0.1 percent, reducing the overall score by 0.01 percentage points.

Employment in manufacturing

Affordable labor costs are a key advantage for Vietnam in attracting foreign manufacturers. Given the manufacturing sector’s critical role in the economy, its employment impact is also substantial. By 2023, the manufacturing sector employed the second-largest workforce in Vietnam, second only to agriculture.

According to the GSO, Vietnam’s manufacturing and construction sector employed 17.5 million people in Q3 2025, accounting for 33.5 percent of the total employment. This represents an increase of 245,500 workers compared to the same period last year.

Key data on Vietnam’s average monthly income in the first 10 months of 2025 include:

The average monthly income stood at VND 8.3 million(US$319), a 10.1 percent year-on-year increase; and
The average monthly income of urban employees was VND 10 million (US$380), compared to the figure of VND 7.2 million(US$273) of their rural counterparts.

Vietnam’s industrial workforce continued to expand in October 2025, according to the GSO. As of October 1, 2025, the number of workers employed in industrial enterprises increased 0.8 percent compared to the previous month and 3.6 percent year-on-year.

Labor demand strengthened across most industrial segments:

Mining: unchanged month-on-month but up 1.6 percent year-on-year;
Manufacturing: up 0.9 percent month-on-month and 3.7 percent year-on-year;
Electricity, gas, steam, and air-conditioning supply: up 0.1 percent and 5.6 percent, respectively;
Water supply, waste management, and wastewater treatment: up 0.3 percent and 1.3 percent, respectively.

Foreign direct investment in Vietnam’s processing and manufacturing industry

According to the Ministry of Finance (MoF), in the first 10 months of 2025, total registered FDI surpassed US$31.52 billion, reflecting a 15.6 percent year-over-year increase. This includes:

US$14.07 billion in new investments with 3,321 new projects, which is a 21.1 percent increase year-on-year;
US$12.11 billion in adjusted capital for 1,206 existing projects, almost doubling compared to previous figures; and
US$5.34 billion through capital contributions and share purchases, a 45.1 percent rise.

The MoF also reported the total new and additionally registered capital by sector as follows:

Processing and manufacturing attracted US$7.97 billion, making up around 56.7 percent of the total;
Real estate attracted US$2.75 billion, making up 19.5 percent; and

The remaining sectors attracted almost $3.35 billion, accounting for roughly 23.8 percent.

Vietnam’s merchandise exports

Vietnam’s trade sector continued to post robust gains in 2025, with total import–export turnover reaching US$762.44 billion in the first ten months of the year, up 17.4 percent (equivalent to an additional US$112.74 billion) compared to the same period in 2024. The FDI sector remained the dominant contributor, accounting for US$550.10 billion, a sharp 25 percent increase, while the domestic sector recorded US$212.34 billion, up a modest 1.4 percent.

Vietnam maintained a positive trade position, posting a US$1.99 billion surplus in the second half of October. Cumulatively, the trade surplus reached US$19.56 billion in the first ten months of 2025, though this remains 15.6 percent lower than the US$23.18 billion surplus recorded a year earlier.

In 2024, there were 37 items with export turnover of over US$1 billion, accounting for 94.3 percent of total export turnover (with 8 items exported at a turnover value of over US$10 billion, accounting for 69.0 percent). Electronics, computers, and components continue to be the leading export goods in terms of export value, dominated by Samsung, LG, Apple, and electronic components manufacturing companies in.

Export revenue in the second half of October amounted to US$22.70 billion, up 17.3 percent compared to the first half. Several major categories posted significant gains, including:

Computers, electronics, and components: +US$1.01 billion (23.1 percent)
Machinery, equipment, tools, and spare parts: +US$546 million (22.5 percent)
Phones and components: +US$276 million (11.5 percent)
Footwear: +US$214 million (23.6 percent)
Textiles and garments: +US$201 million (13.5 percent)
Steel products: +US$140 million (85.1 percent)
Wood and wood products: +US$128.8 million (18.4 percent)

For the ten-month period, total export turnover reached US$391 billion, up 16.2 percent year-on-year. The FDI sector continued to lead with US$295.66 billion, accounting for over 75.6 percent of the national export value.

Incentives for investing in Vietnam

Vietnam’s Law on Investment specifies the three forms of incentives that are available to companies operating within the country:

Corporate income tax (CIT) incentives, including various preferential tax rates and tax holiday rates;
Import duty incentives; and
Exemption or reduction of land rents and levies.

The CIT incentives can be granted to investments based on whether they belong to prioritized or government-encouraged sectors and/or are established in economic zones or disadvantaged locations, etc.

New incentives set to take effect

Vietnam has launched two new directives, Resolution 198 and 139, which detail special mechanisms and policies for the private sector, along with their implementation plans. These incentives aim to bolster businesses by addressing critical areas such as taxes, fees, land access, finance, credit, and administrative obstacles.

New tax regime with amended CIT Law

The National Assembly’s approval of Vietnam’s amended CIT Law on June 14, 2025, marks an important change in the country’s tax regime. While the headline tax rate remains unchanged, the underlying structure of how corporate incentives are granted has shifted, especially for manufacturing companies operating in industrial parks.

Industrial park classification in Vietnam

Industrial parks in Vietnam fall under three categories according to Decree No. 82/2018/ND-CP on the management of industrial parks and economic zones. These are as follows:

Export processing zones: Industrial parks focused on manufacturing goods for export and providing services to support production for export. These zones must comply with the conditions, processes, and procedures outlined in the Decree.
Auxiliary industrial areas: Industrial parks specializing in manufacturing auxiliary products and providing related services. Up to 60 percent of the rentable industrial land within these parks can be leased or re-leased for auxiliary industry projects.
Eco-industrial parks: Industrial parks that emphasize cleaner production, efficient use of natural resources, and cooperation among enterprises to enhance economic, environmental, and social benefits through industrial symbiosis.

Vietnam’s national policy framework for manufacturing development

Recognizing the importance of the manufacturing sector and industrial development to the health of the overall economy, Vietnam’s government has implemented several national schemes to further promote these areas.

Strategy on exports and imports for 2011-2020, with a Vision to 2030

Former Prime Minister Nguyen Tan Dung approved the Strategy on Exports and Imports for 2011-2020, with a Vision to 2030 in his Decision 2471/QD-TTg dated December 28, 2011.

This framework outlines specific targets and implementation strategies for the manufacturing sector:

Export orientation: Focus on developing high-tech and advanced products in the processing and manufacturing industries.
Production and economic restructuring: Encourage and attract investment in supporting industries to meet domestic needs and integrate into the global supply chain, particularly in manufacturing mechanics, electronics, automobile components, textiles, footwear, and high technology.

Industrial Development Strategy Through 2025, with a Vision to 2035

The Industrial Development Strategy Through 2025, with a Vision Toward 2035, was approved under Decision No. 879/QD-TTg dated June 9, 2014. This strategy set specific development priorities for the following processing and manufacturing sub-sectors:

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Mechanical engineering and metallurgy;
Chemicals;
Agricultural, forestry, and fishery product processing; and
Garments, textile, leather, and footwear.

National Industrial Development Policy by 2030 with a Vision to 2045

Resolution No. 23/NQ-TW, dated March 22, 2018, outlines the National Industrial Development Policy for 2030 with a Vision to 2045. The specific targets to be achieved by 2030 include:

Industry is expected to contribute over 40 percent of GDP, with the processing and manufacturing sector accounting for around 30 percent and manufacturing alone for over 20 percent.
The proportion of high-tech products in the processing and manufacturing sector will reach at least 45 percent.
The industrial added value growth rate will average over 8.5 percent, with the processing and manufacturing sector growing over 10 percent annually.
Labor productivity in the industry will grow by 7.5 percent per year.
The Competitive Industrial Performance (CIP) Index will rank among the top three ASEAN countries.
The proportion of labor in the industrial and service sectors will exceed 70 percent.
Development of large-scale, multinational, and globally competitive industrial clusters and enterprises.

Socio-Economic Development Plan for 2021-2025

The government’s action plan, designated in Resolution No. 99/NQ-CP, implements the Socio-Economic Development Plan for the five-year period from 2021 to 2025. The action plan states its specific objectives related to the manufacturing sector, which are:

Average GDP growth rate in this 5-year period to reach about 6.5 – 7 percent;
Proportion of processing and manufacturing industry in GDP to reach over 25 percent;
Digital economy to account for about 20 percent of GDP; and
Contribution of total factor productivity (TFP) to growth to be about 45

National Green Growth Strategy for 2021-2030, Vision Towards 2050

Aiming to empower the economy through a green growth transition, Vietnam’s government issued Decision No. 1658/QD-TTg approving the National Green Growth Strategy for 2021-2030 with a Vision Towards 2050. Key goals are:

Reducing the level of energy consumption in manufacturing, transportation, commercial, and industrial activities
Facilitating the conditions for the development of new green manufacturing industries; and
Encouraging the application of green technologies along with manufacturing activity management and control systems.

Source: Vietnam Briefing